If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the econom...
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
Homework Answers
Answer
Option 1
decrease; decreases
the sell sends securities in the market and takes out the money from it so the reserves and monetary base decrease by the same amount and that is the sell amount $130 million.
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If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the econom...
If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the ______ in the economy w...
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,...
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
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank,...
-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
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non-bank public,...
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non-bank public, who then deposits the compensation in their checking account. As a result, ______ will increase by $130 million and so, the monetary base will rise by ______. Group of answer choices A) currency in circulation; by more than $130 million B) currency in circulation; exactly $130 million C) reserves; by more than $130 million D) reserves; exactly $130 million
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank...
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by currency in circulation; by more than $130 million currency in circulation, exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
If the Federal Reserve Bank purchases $120 million worth of securities in the open market, then...
If the Federal Reserve Bank purchases $120 million worth of securities in the open market, then the monetary base will Group of answer choices The monetary base will decrease by exactly $120 million The monetary base will increase by exactly $120 million The monetary base will increase by more than $120 million The monetary base will decrease by less than $120 million
D1. Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non-...
D1. Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by_ currency in circulation; by more than $130 million currency in circulation; exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking...
When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant. increase; decreases increase; increases decrease; decreases decrease; increases
During open market operations the Federal Reserve Bank purchases $120 million dollars worth of securities. The...
During open market operations the Federal Reserve Bank purchases $120 million dollars worth of securities. The estimate, using the simply multiplier model is that this will raise checkable deposits in the economy by $750 million. In this, the required reserve ratio is Group of answer choices A) 12% B) 16% C) 18% D) 20%
The Federal Reserve Bank purchases $X worth of securities and as a result, total checkable deposits...
The Federal Reserve Bank purchases $X worth of securities and as a result, total checkable deposits in the economy increases by $3,500? Using a required reserve ratio of 6% and the simple multiplier formula, find X. Group of answer choices $175 $190 $210 $245
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
-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
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by currency in circulation; by more than $130 million currency in circulation, exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
D1. Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by_ currency in circulation; by more than $130 million currency in circulation; exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
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