"C"
the federal reserve doesn't give any loan to the individuals but they mange the monetary base and regulate the banking system in the market.
The Federal Reserve does all except which of the following? 10. control the supply of money...
4. Which of the following statements about the Federal Reserve is (are) correct? A. The Fed conducts monetary policy by changing the money supply B. The Fed acts as a lender of last resort to the banking system C. The Fed does not convert Federal Reserve Notes into gold D. All of the above E. A and B, only 5. The regional Federal Reserve Banks A. regulate banks in their regions. B. are not allowed to make loans to banks...
9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve System D) Senate Committee on Banking and Finance. 10. Ceteris paribus, if the Fed raised the required reserve ratio A) Banks could increase their lending B) The Federal funds interest rate would rise. The size of the monetary multiplier would decrease. D) The size of the monetary multiplier would increase. 11. Money is created when A) Loans are made. Checks written on one bank...
If the Federal Reserve increases the reserve requirement, what will happen to the Money Supply in the banking system? a. Increase b. Decrease c. Remain the same
Question 6 The Federal Reserve System is under the strict control ofQuestion 6 options:the executive branchthe legislative branchthe judicial branchthe International Monetary Fundnone of the aboveQuestion 7 The Fed typically increases the money supply byQuestion 7 options:selling government bondsbuying government bondsselling government loansprinting more currencybuying government loansQuestion 8If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to makeQuestion 8 options:$75,000$12,000$1,000$30,000$3,000Question 9The Federal...
2. The structure of the Federal Reserve Aa Aa Which of the following are functions of the Federal Reserve? Check all that apply. Regulating the money supply Lending money directly to households and firms Setting the interest rate on home mortgages and auto loans Setting reserve requirements Issuing currency Which of the following are true of using money supply targets to achieve monetary policy goals? It tends to emphasize low inflation over low unemployment due to political pressures The Fed...
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 $500. Determine the money multiplier and the money supply for each reserve requirement listed in the following table.Reserve RequirementSimple Money MultiplierMoney Supply(Percent)(Dollars)25 10 A higher reserve requirement is associated with a money supply.Suppose the Federal Reserve wants to increase the money supply...
36. The Federal Reserve System in the U.S. has the greatest control over a. The Federal Funds rate. b. The Discount rate. c. The consumer loan rate. d. All of the above e. None of the above 37. Suppose the U.S. Treasury issues and sells $100 million of U.S. government securities (bonds) to the public. How will this affect the money supply! the money supply will increase. b. the money supply will decrease. c. the money supply will be unaffected....
12. Which of the following is most likely to occurif the Federal Reserve engages in open market operations to reduce inflation? (A) A decrease in interest rates B) A decrease in reserves in the banking system C) A decrease in the govemment deficit D) An increase in the money supply increase in exports pon
8. The reserve requirement, open market operations, and the money supply 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 $500. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement (Percent) Money Supply (Dollars) Simple Money Multiplier A lower reserve requirement is associated...
If the Federal reserve increases the supply of money: A. there will be an increase in government spending. B. there will be a decrease in aggregate demand. C. there will be no effect on aggregate demand. D. there will be a decrease in interest rates. E. there will be an increase in interest rates.