Which of the Federal Reserve’s measures of the monetary aggregates—M1 or M2—is composed of the mostliquid assets? Which is the larger measure?

Q: What does it mean for an asset to be liquid? Which of the assets listed below is the most liquid?…

A: A liquid asset is something that can be turned into money fast and readily while keeping its market…

Q: Why was the Federal Reserve System set up withtwelve regional Federal Reserve banks rather than…

A: The federal reserve system of the Fed is the central banking system of the United States, comprised…

Q: Discuss the three primary functions of money as well as the Federal Reserves measures of the…

A: Money is what money does. The functions of money are: 1) Medium of exchange: Money acts as the…

Q: p. Which of the following policies of the Federal Reserve is considered expansionary? O raising the…

A: Selling Govt. securities reduces money supply (as banks now will have Govt. securities and money…

Q: Calculate legal reserve ratio if money multiplier is 7.5

A: We are given with the value of money multiplier which is:- Money multiplier = 7.5 We have to…

Q: Federal Reserve functions include al of the following EXCEPT a) providing banking services to…

A: FEDERAL RESERVE FUNCTIONS AS PER OPTIONS GIVEN IN QUESTION 1. The Federal Reserve, as most national…

Q: which of the following are functions of the Federal Reserve System? Check all that apply O…

A: Supervising member banks: Following the establishment of rules and regulations, supervision—which…

Q: The Federal Reserves dual final targets are O employment and inflation O inflation and the federal…

A: The Federal Reserve is the central bank of the United States of America that is set up to provide a…

Q: Suppose there was a banking crisis. The money supply would shrink by the greatest amount if the…

A: Money supply = Monetary base * Money multiplier => Δ(Money supply) = Δ(Monetary base) * Money…

Q: Explain why you think the Federal Reserve Bank tracks M1 and M2.

A: The money supply circulation in the economy depends upon the different parameters and concepts of…

Q: Who selects the chairperson of the federal reserve system ? Describe the relationship between the…

A: Federal Reserve system:Federal Reserve system or Fed is a central bank of the United States which…

Q: Of the twelve regional Federal Reserve Banks, only the _______ make(s) the purchase and sale of…

A: Answer: Option C (New York Fed) Explanation: The federal reserve makes the purchase and sale of…

Q: Explain why the interest rate channel of the transmission of monetary policy works better if there…

A: The interest rate channel is a monetary policy process in which a central bank's policy induced…

Q: Suppose the regal bank has resevers of $2000 .what is the reserve ratio?

A: The central bank of the economy regulates the quantity of money supplied in the economy. The central…

Q: Which of the following does the Federal Reserve use to regulate the nation's money supply? li Fiscal…

A: The Federal Reserve System uses monetary policy to manage the nation's funds . Monetary policy is…

Q: What are the three monetary policy tools that Fed has at its disposal?

A: Monetary policy refers to the central bank’s policy that brings changes in the supply of money by…

Q: The answer is not quasi-private. Already tried that choice

A:

Q: On October 30, 2019, the FOMC lowered its target rate for the federal funds rate. As part of its…

A: Here, it is given that the Federal Reserve changes Federal funds rate in the market. At the same…

Q: Is the Federal Reserve an independent institution? If so, why did the U.S. Congress establish the…

A: The body that tends to monitor the occurrence of the financial system and work towards ensuring the…

Q: Which two of the following fifinancial institutions offer checkable deposits included within the M 1…

A: Financial Institutes are responsible for the ordinally and regulated flow of money supply.  M1 is…

Q: What is meant when economists say that the Federal Reserve Banks are central banks, quasi-public…

A: The federal reserve system refers to the central banking system that is followed in the U.S. Many…

Q: The following are distinctive characteristics of the Federal Reserve System in USA, EXCEPT:…

A: The distinctive characteristics of the Federal Reserve System in USA are: Financially Independent –…

Q: What is the main purpose of the Federal Reserve Bank's regulatory oversight of banks? to maximize…

A: The central bank of the United States which was being created by Congress which is also known as the…

Q: 2.3 Use the money demand and money supply model to show graphically and explain the effect on…

A: Open market operation refers to the sale and purchase of government securities. Open market purchase…

Q: Describe the functions of the federal reserve system. What is its number one function from a policy…

A: The federal reserve is the central bank of the United States (US). The central bank is the apex bank…

Q: What powers does the federal reserve ha

A: Federal Reserve is the central bank of the country which is also called the bankers' bank. The…

Q: If the Fed wants to increase the money supply withopen-market operations, what does it do?

A: Solution: Open Market: It refers to an economic situation where free trading is happen. Government…

Q: Are credit card card balance considered a loan from the bank in M2?  And does the Fed reserve hold a…

A: There are three basic definitions of money which define under M1, M2, and M3. M1 consists of all…

Q: Describe the Federal Reserve's monetary policy instruments and how they are used.

A: Various monetary policy instruments of Fed are 1. Required reserve ratio 2. Discount rate 3. Open…

Q: Describe an advantage and a disadvantage of the factthat monetary policy has so many different…

A: A monetary policy refers to a policy used by the central bank of a country. Under this policy, the…

Q: Discuss with example monetary policy and how it establishes federal reserve structure of country?

A: For any country, the Central bank of that country is responsible for setting up the monetary policy…

Q: In April 2009, year-over-year the growth rate of M1 fellto 6.1%, while the growth rate of M2 rose to…

A: M1, M2, M3, and M4 are known as monetary aggregates. M1 and M2 are known as narrow money while M3…

Q: 13. Which of the following is considered to be a relatively weak tool of monetary policy? *

A: GIVEN   the following is considered to be a relatively weak tool of monetary policy IS

Q: The Monetary Control Act of 1980 extended theFed’s authority toa. impose required reserve ratios on…

A: The depository institutions deregulation and monetary control act of 1980 was one of the key laws…

Q: Explain the major functions of the Federal Reserve.

A: Federal Reserve is the central bank of US. It was established in order to provide flexible and…

Q: What does liquidity mean? What are some less than 100% liquid monetary instruments?

A: In economics we can study regards many instruments like money , bonds etc. These are those…

Q: What the equation used by the Fed to determine the short-run demand for M2 is?

A: In addition to everything that M1 includes, M2 also includes other types of deposits. M2 includes,…

Q: Why are repurchase agreements used to conduct mostshort-term monetary policy operations, rather than…

A: The central bank's strategy on the application of financial tools within its supervision to meet the…