The Tools available when using fiscal policy are Interest Rates The Federal Reserve Open Market Operations Taxing policy and the required reserve None of the above

Q: Refer to the diagram above.  The shift of the aggregate demand curve from AD1 to AD2 might result…

A: The aggregate demand refers to the curve that represents the total quantity of all goods and…

Q: Which of the following is true?     The width of the federal funds target range is 50 basis…

A: The current federal funds rate is 0.50 % - 0.25 %. There is 25 basis point difference between…

Q: Disinflation exerts impact on both output and unemployment"

A: Introduction Disinflation means that rising in prices but at a lower rate. During disinflation the…

Q: Most monetary policy at 0% interest rates, utilizes:   Question 17 options: a. quantitative easing…

A: Monetary policy increases liquidity to make economic process. It reduces liquidity to forestall…

Q: There are two types of open market operations carried out by the central bank, dynamic and defensive…

A: Open market operations, sometimes known as OMO are when a central bank buys or sells short-term…

Q: All of the following are nontraditional tools of monetary policy except Group of answer choices…

A: Central bank is the regulator of the banking system of the country. The primary aim of the central…

Q: Commercial banks that go to the discount rate window to borroe funds from the Federal Reserve, may…

A: please find the answer below.

Q: If the Federal Reserve conducts a $10 million open-market sale and the reserve requirement is 20%,…

A: Monetary base:Monetary base can be calculated as follows:

Q: A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate…

A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower.

Q: When the Federal Reserve system (the Fed) sells bonds to banks, we would expect them to lower the…

A: Monetary policy is implemented and managed by the central bank of the country. While the fiscal…

Q: Contractionary monetary policy is aimed at ________ the federal funds rate and ________the aggregate…

A: Adopting a contractionary monetary policy is aimed at decreasing the money in the hands of the…

Q: The federal funds rate is the interest rate that banks charge one another for short-term (typically…

A: Open-market operations are used to increase or decrease the money supply in the economy or in the…

Q: One thing all expansionary monetary policies have in common is that they all include increasing…

A: Expansionary monetary policy means using monetary policy tools in such a manner that it increases…

Q: he policy lever most commonly used by the Fed is   changing the discount rate changing the reserve…

A: The Federal Reserve in the U.S was created on 23rd December 1913. It is the central bank of the U.S.…

Q: Fill in the following table by identifying whether it’s a fiscal policy or monetary policy. Also…

A: Type of policy and effect on money supply is shown in below table.

Q: The group within the Federal Reserve that ultimatly decides on monetary policy and interest rate…

A: The Federal Reserve System is the national bank and monetary power of the United States. The Federal…

Q: The probability of a bank run would decrease if the Fed   Question 14 options:   had a 0% reserve…

A: Fractional reserve banking is the method of money creation by banks, where bank hold some part of…

Q: There are four (4) main transmission channels that can be used as monetary policy to target the…

A: As a consequence of monetary policy decisions, the monetary transmission mechanism is the procedure…

Q: By dictating the amount of money commercial banks must keep in the bank, the __________ represents…

A: Reserve requirement is the fund that banks need to put in reserves in order to meet liabilities if…

Q: Which of the following is the primary tool of monetary policy under an ample reserves regime? A…

A: While executing money related strategy in an adequate stores system, the Fed basically depends on…

Q: The Board of Governors of Federal Reserve have 14-year terms of office and the Federal Reserve is a…

A: Federal reserve is the central bank of America . Central bank controls , manage the entire monetary…

Q: Which of the following is NOT a tool used by the Federal Reserve to control the Money Supply in the…

A: The tools used by the Federal Reserve to control the Money Supply in the United States: A) Open…

Q: How is it that this expansionary monetary policy could actually lead to an increase in savings?…

A: The answer is as follows:,-

Q: Which of the following is not one of the three tools used by the fed to implement US monetary…

A: Printing more money is not one of the three tools used by the fed to implement US monetary policies.

Q: Which of the following can be categorized under fiscal policy?   a. Decrease in money supply   b.…

A: Fiscal policy -  The policy under which tax policies and government spendings are used to make an…

Q: The narrowest definition of money:   Question 9 options:   contains only cash and bank reserves…

A: Money is the currency that is used by all the people in order to buy goods and services. Money…

Q: The Fed holds deposits from cooperating banks. This allows them to influence interests rates by A)…

A: Federal funds are excess reserves that commercial banks and other financial institutions deposit at…

Q: The ultimate goal of U.S. monetary policy is: Interest rate stability. Economic growth with low…

A: Answer: Correct option: 2 (Economic growth with low inflation) Explanation: The ultimate goal of the…

Q: The federal funds rate is the interest rate that banks charge one another for short-term (typically…

A: Federal funds rate is the interest rate that banks charge each other for other short term loans that…

Q: Assume the economy is currently in Recession and the Federal Reserve has chosen to use the required…

A: Recession is the economic scenario where the growth rate has declined continuously for two or more…

Q: The Fed uses open market operations to :Select one .a. determine the required reserve ratio .b.…

A: The Fed uses open market operation to turn up the target rate and its use to sell or buy the…

Q: ompare the use of open market operations, loans to financial institutions, and changes in reserve…

A: The money supply refers to the availability of the monetary assets in an economy at a particular…

Q: Give one policy that can complement the reserve requirement in expanding credit in the banking…

A: Banks and other depository institutions must retain a certain amount of reserves against their…

Q: Federal Reserve & Open Market Operations If the Fed shifts to a more restrictive monetary policy,…

A: The Federal Reserve is the Central authority of United States to make open market purchase or sale…

Q: Which of the following is the role of the Federal Reserve System? Select one: a. Set the Required…

A: Federal Reserve system is the central bank authority just like the other countries whose function is…

Q: The Federal Open Market Committee consists of: Group of answer choices 7 members nominated by the…

A: Federal Open Market Committee is the committee which operates the money supply of the economy by…

Q: When the growth rate of the money supply is decreased, interest rates will fall immediately if the…

A: Decrease in money supply will increase the interest rate in the economy because of liquidity effect.…

Q: The federal funds rate should never go above which of the following: the risk-free rate the interest…

A: Discount rate: It is the interest rate at which banks borrow from the Federal Reserve.  Federal fuds…

Q: Which of the following can be described accurately as “policy rates adjusted by the Fed?” (a)…

A: The policy rate adjusted by Fed refers to the adjustment in the interest rates by the Federal Open…

Q: If the Fed shifts to a more restrictive monetary policy, and it utilizes the open market operations…

A: Contractionary monetary policy is done in order to reduce the aggregate demand, decrease output, and…

Q: If the Fed wanted to raise the Federal funds rate using open market operations, other things equal,…

A: Open market operations refer to purchase and sale of   security bills to affect money supply in the…

Q: Which of the following best explains why a large increase in the supply of bank reserves can have no…

A: Federal funds rate is the rate at which banks would lend out their excess reserves to other banks…

Q: Federal Reserve Board of Governors are appointed by the ______________ and confirmed by the…

A: Answer: Correct option: (c) President, Senate The Federal Reserve Board of Governors consists of…

Q: Which of the following scenarios is considered contractionary? A cut in reserve requirement BSP…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: The Federal Reserve Bank relies on three tools to engage in monetary policy:   Question 7 options:…

A: Federal Reserve Bank is the central bank of the U. S. It can influence the economy through monetary…

Q: True or false question.  Open market operations is a monetary policy tool that involves buying and…

A: Open market operations (OMO) alludes to a national bank trading transient Treasuries and different…

Q: The most effective tool of Monetary Policy at the Fed's disposal is Open Market Operations.   the…

A: The Monetary Policy helps to regulate the money supply which helps in economic growth.

Q: What is a likely direct result in bank behavior after the Fed lowers required reserve rate?     No…

A: The reserve requirement ratio is the legally required proportion of deposits that banks must hold…