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Federal commercial bank sells a Treasury bond to the Reserve for $100,000. The money supply: L016.3...
A chartered bank sells securities to the Bank of Canada for $100,000. The money supply: increases by $100,000. decreases by $100,000, is unaffected by the transaction.
If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the economy ____ by $130 million and the monetary base ____ by $130 million. Group of answer choices decrease; decreases decrease; increases increase; decreases increase; increases
Question 17 When the Federal Reserve purchases a Treasury security on the open market, the money supply and the federal funds rate increases, increases increases, decreases decreases, increases decreases, decreases
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the __in the economy will by $45 million. reserves, increases reserves, decrease currency in circulation; descrease currency in circulation; increase Question 4 1 pts Using the simply money multiplier model, what quantity of securities must the Federal Reserve purchase to generate an increase in the size of checkable deposits by $22,500, assuming the required reserve ratio is 4%? 810 aso
If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the ______ in the economy will ______ by $45 million. Group of answer choices A) reserves; increases B) reserves; decrease C) currency in circulation; descrease D) currency in circulation; increase
D3. If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the in the economy will _ by $45 million. reserves; increases reserves; decrease currency in circulation; descrease currency in circulation; increase
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by ________, and the money supply can increase by as much as ________. A. $90,000; $900,000 B. $80,000; $800,000 C. $10,000; $100,000 D. $90,000; $1,000,000
When the Federal Reserve conducts open market operations, it buys or sells government bonds. buys and sells foreign currency. manipulates of the rate at which it loans to member banks. increases or decreases the required reserve ratio. How will the Fed's policy action change the money supply? Use only the actions corresponding to your choice in the previous part. The money supply increases The money supply decreases Answer Bank Answer Bank The Fed sells foreign currency The Fed buys bonds...
1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio is 10 percent, banks loan all excess reserves, and the currency drain is 20 percent, how much does the quantity of money increase? A. $1,000,000 B. $10,000,000 C. $1,100,000 D. $900,000 E. $100,000 2.A bank maximizes its stockholders' wealth by ______. A. colluding with other banks to keep interest rates high colluding with other banks to keep interest rates high B. lending for long...
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...