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.
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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.
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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...
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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...
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