What happens to the monetary base when the Fed buys Treasury bonds?   A. Bank reserves do not change   B. Bank reserves decline   C. Bank reserves increase

Question 4 a. b. The Bank of England (BOE) which is the central of the UK announced that it would slow down the pace of increasing interest rate because there was sign that the labour market was slowing down. The market quote for GBP (with bid and ask) is: GBP 1.1954/1.1967 What would you do if you want to trade according to the news? State which currency you buy and which currency you sell. What is the rate you are going to deal at? (Show workings) You will need to pay a EUR bill for goods imported from Italy in 3 months. You have USD and want to fix the exchange rate today by using forward. You get a market quote (with bid and ask) of: Spot EUR/USD 3-month swap points 1.0655/1.0673 55.59 / 62.09 State which currency you buy and which currency you sell. What is the rate you are going to deal at? (Show workings)

The federal budget deficit has been growing over the past several years.  What impact will this fiscal change have on the supply of Treasury bonds?   A. Bond supply does not change   B. Bond supply increases   C. Bond supply declines

What is the role of the Federal Reserve with interest rates during a recession?