Homework Answers
1) B option is correct
Floating exchange rate is the rate determined by demand and supply.
2) C option is correct
When open market purchase government bond it increases reserve and which decreases interest rate and increase money supply.
3) C option is correct
Excess reserve= legar reserve- reserve required
Reserve required= deposit* reserve ratio
= 100000*0.10 = 10000
Excess reserve= 25000 - 10000 = 15000
4) A option is correct
Increase in required reserve ratio decreases money supply as the greater the reserve requirement the less money bank can lend.
please upvote if i'm able to help you it means a lot
thank you
Add Answer to:
answer these 4 . will rate after
The exchange rate for a foreign currency that is...
The exchange rate for a foreign currency that is determined by supply and demand is Group...
The exchange rate for a foreign currency that is determined by supply and demand is Group of answer choices a constrained exchange rate. a floating exchange rate. a fixed exchange rate. a controlled exchange rate.
I know the answer, but i don’t know how to calculation.
I know the answer, but i don’t know how to calculation.
1) If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are and the money supply is_ 2) The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve/deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve/deposit ratio do...
answer these 4. will rate after Assume that the required reserve ratio is 20%. If the...
answer these 4. will rate after
Assume that the required reserve ratio is 20%. If the Federal Reserve buys $10 million worth of government bonds from the public, the maximum change in the money supply will be: more than 10 million. $2 million. O less than 10 million. o less than 2 million. Assume the reserve ratio is 25 percent and there are $40,000 in new deposits in the banking system. As a result, the money-creating potential of the commercial...
Assume that banks do not hold excess reserves and that households do not hold currency
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $400. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. A higher reserve requirement is associated with a _______ money supply. Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as integer values. Deposits: Money supply: b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as integer values. Currency held by the public:...
answer these will rate after If the Fed increases the discount rate, banks will face a...
answer these will rate after
If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired rese...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as whole numbers Deposits: $ Money supply. $ b. The maney supply is $550 and currency held by the public equals bank reserves The desired reserve-deposit ratio is 025 Find currency held by the public and bank reserves. Instructions: Enter your responses as whale numbers Currency held by...
1) The price of one currency in terms of another is called A)...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
The sum of currency and bank deposits at the central bank is called: a. the money...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits.
8. The reserve requirement, open market operations, and the moneysupply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $400. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. A higher reserve requirement is associated with a _______ money supply. Suppose the Federal Reserve wants to increase the...
I know the answer, but i don’t know how to calculation.
1) If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are and the money supply is_ 2) The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve/deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve/deposit ratio do...
answer these 4. will rate after
Assume that the required reserve ratio is 20%. If the Federal Reserve buys $10 million worth of government bonds from the public, the maximum change in the money supply will be: more than 10 million. $2 million. O less than 10 million. o less than 2 million. Assume the reserve ratio is 25 percent and there are $40,000 in new deposits in the banking system. As a result, the money-creating potential of the commercial...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as integer values. Deposits: Money supply: b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as integer values. Currency held by the public:...
answer these will rate after
If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as whole numbers Deposits: $ Money supply. $ b. The maney supply is $550 and currency held by the public equals bank reserves The desired reserve-deposit ratio is 025 Find currency held by the public and bank reserves. Instructions: Enter your responses as whale numbers Currency held by...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
Most questions answered within 3 hours.
-
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 7 minutes ago -
(1) Write the net ionic equation for the reaction that occurs
when equal volumes of 0.191...
asked 34 minutes ago -
On the night of April 18, 1775, a signal was to be sent from the
Old...
asked 17 minutes ago -
For each of the following strong base solutions, determine
[OH−],[H3O+], pH, and pOH 4.8 x 10^-4...
asked 12 minutes ago -
The magnitude of the electric field inside a capacitor is 6.6 x
106 N/C. What is...
asked 12 minutes ago -
Organizations may have only a few products or many products in a
product line. Consider Campbell...
asked 26 minutes ago -
could you please help me to explain the nmr splitting
integration and chemical shift and assignment...
asked 22 minutes ago -
A
29.0 cm diameter coil consists of 23 turns of cylindrical copper
wire 2.00 mm in...
asked 28 minutes ago -
Q1
Two of your friends each received the results of their
first midterm exam this term....
asked 45 minutes ago -
A 0.500-kg object, suspended from an ideal spring of spring
constant 30.2 N/m, is oscillating vertically....
asked 43 minutes ago -
Please help and show work. I keep getting the wrong answers for
these problems
1. Cell...
asked 40 minutes ago -
If there is a SNP in the read with respect to the
reference genome, how would a...
asked 42 minutes ago