If the Bank of Canada were to conduct an open market purchase, it would Select one: a. decrease the money supply and decrease output. b. increase the money supply and decrease output. c. increase the money supply and increase output. d. decrease the money supply and increase output.

I'd like help on b,c,d

A purchase of U.S. government securities by the Fed causes   A. a multiple contraction of the money supply because deposits fall by more than the amount of the securities purchased.   B. a contraction of the money supply equal to the amount of the securities because all other transactions occur within the banking system.   C. an expansion of the money supply equal to the amount of the securities because all other transactions occur within the banking system.   D. a multiple expansion of the money supply because the required reserve ratio is less than one

In the U.S., currency in circulation (C) is $1.2 trillion and the monetary base (B) is $3.7 trillion. Assume the reserve-deposit ratio (rr) and the currency-deposit ratio (cr) are both 0.25.   What is the size of bank reserves (R)? What is the money multiplier? What is the money supply? What is the velocity of money if nominal GDP is $17 trillion? If the FOMC increases bank reserves (R) by $0.5 trillion and banks choose to hold all the additional reserves rather than loan them out, what is the new money supply? What is the new money supply if instead banks loan out 50% of the additional new reserves and households deposit all the additional loans? Assume that the velocity of money is constant and real GDP is growing at 1%. Use the numbers in part (a) to answer the next question. If the Fed wishes to keep the price level constant, how much (in dollars) do they need to increase the money supply?

Need help with these questions, I need them all answered. Thank you!   1.  Your cousin says:  "I know what money is (pulling out a dollar bill and 23 cents) it's this!"   What is your cousin missing when it comes to understanding and defining the money supply?  (What counts as the "money supply" - say M1 - as the U.S. defines it?)   2.  What is the top decision-making body within the Federal Reserve System, and how does one get to be a voter within that decision-making body?    3.  If you use a credit card to buy something are you using "money" strictly speaking?  Why or why not?

Assume that banks lend out all their excess reserves and individuals deposit all their money. If the Required Reserve Ratio is .20, what does the Fed have to do to decrease the supply of money by $300 billion? Select one: a. Sell $60 billion worth of government bonds to commercial banks b. Sell $80 billion worth of government bonds to commercial banks c. Sell $200 billion worth of government bonds to commercial banks d. Buy $100 billion worth of government bonds from commercial banks e. Buy $60 billion worth of government bonds from commercial banks

In the nation of X, the money supply is $100,000 and reserves are $10,000. Assuming that people hold 20,000 in currency, and that banks hold no excess reserves, then the reserve requirement is Question 8 options:   10 percent.   12.5 percent.   20 percent.   33.3 percent.

Currently, the Fed does not have complete control of the money supply because the Congress and the Treasury can also make changes to the money supply. government bonds may not be available for purchase when the Fed wants to perform OMO. the Fed does not know where all the U.S. currency is located. the amount of money in the real economy depends on the behavior of depositors and bankers. All of the above are correct.

Choose the correct answer   1. The neutrality of money refers to the idea that:   a) a change in money supply has no impact on output over any time        period.   b) a change in money supply has no short run impact on output.   c) the real quantity of money is constant in the long term.   2.  a) only the central bank can create money.  b) commercial banks can create credit.  c) all UK currency is backed by central bank holdings of gold.   3.  a) UK currency is a commercial bank liability.  b) UK currency is a Bank of England liability.  c) UK currency is a central bank asset.

The fractional reserve banking system A. requires banks to hold a portion of their demand deposits as cash. B. imposes limits on the amount of money that banks can create. C. precludes banks from creating money. D. requires that banks keep excess reserves.   Option A is Wrong...FYI, hoping to get the correct answer and an explanation.