U.S. import transactions create:    a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks            a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks            a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks            a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks

Scenario 29-1 The Monetary Policy of Jaune is controlled by the country's central bank known as the Bank of Jaune. The local unit of currency is the Jaunian dollar. Aggregate banking statistics show that collectively the banks of Jaune hold $240 million of required reserves, $60 million of excess reserves, have issued $6,000 million of deposits, and hold $480 million of Jaunian Treasury bonds. Jaunians prefer to use only demand deposits and so all money is on deposit at the bank. Refer to Scenario 29-1. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Jaunian Banks? O 5 percent, 8 percent 4 percent, 8 percent 4 percent, 5 percent 5 percent, 4 percent

Suppose the Federal Reserve wants to fix the U.S. exchange rate with the yen at $0.008 per yen. If the equilibrium market exchange rate were significantly lower at $0.007 per yen, what would the Fed need to do to maintain the fixed rate of $0.008 per yen? What would be the effect of these actions on the money supply in the U.S.? Explain.

When the central bank sells securities in the open market, which of the following sets of actions will happen? Group of answer choices Increase in interest rates, increase in budget deficit, and a trade surplus The money supply will increase, nominal interest rates will fall, increase in aggregate demand The money supply will decrease, nominal interest rates will increase, decrease in aggregate demand The money supply will increase, nominal interest rates will fall, decrease in aggregate demand