What term is used to describe the interest rate charged by the central bank when it makes loans to commercial banks? open market rate O Fed rate reserve requirement discount rate

Q: What is the importance of establishing a central bank? 2. How does a financial system work?

A: central bank is the financial institution which performs promotional , regulatory functions and…

Q: what is the benefit if the commercial banks create new money?

A: Money refers to the economic unit that is used to make exchanges and to set the value of any…

Q: credit rationing and partake of the federal bank

A: Credit rationing is a tool that is used for selective and qualitative method of credit control with…

Q: Describe why the Central Bank is the “lender of last resort.”

A: Central bank is the apex Institution or the top institute which control a country's monetary system.

Q: Use the following information to answer questions 7 through 8: Consider the following balance sheet…

A: In this case we see that the bank has total amount of deposits of $3000. Out of this, it creates…

Q: A bank may also borrow reserves from its Federal Reserve District Bank at its “discount window.” The…

A: Federal funds rate - Federal Funds Rate is the rate at which the financial institutions lend reserve…

Q: How the RBI can inject or withdraw the liquidity from the banking system? Explain the direct and…

A: The banking system in an economy is considered to be one of the most important sector, which assists…

Q: 12. The Federal Reserve Bank is: A. A Quasi Public Bank B. A Private Bank C. The first bank…

A: Answer -

Q: Please answer the following question: When the federal reserve lowers the reserve requirement, the…

A: Money supply refers to the amount of money available in an economy at a particular point in time.…

Q: Which of the following is NOT a bank liability? checkable deposits CDs mortgage loans borrowings…

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: . The independence of central banks is desirable, discuss the advantages and disadvantages of this…

A: Central bank is an apex body for any country. It is the one which controls over all the monetary…

Q: Compare the structure and independence of the Fed- eral Reserve System and the European System of…

A: The phrase "central bank" refers to a national bank that not only issues currency but also offers…

Q: How do technological advancements in agriculture impact the supply and demand for agricultural…

A: The production of food has been completely transformed by agricultural technology, which has had a…

Q: Should banks have to hold 100% of their deposits? Why or why not? -Discussion-

A: The economies around the world tend to work with the motive of enhancing their economic, and…

Q: Briefly explain how banks can optimize their position through managing their use of commodities?

A: The banking sector is undergoing a significant transformation, fueled by new competition brought on…

Q: Judy runs a bank and believes interest rates will increase in the future. Explain what size interest…

A: The gap between the interest receiving assets and the interest rate paid liabilities are called…

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: Which is the interest rate at which banks borrow from the Federal Reserve? the federal funds rate…

A: Federal reserve, known as Fed, is the central bank of U.S. which controls the monetary  policy of…

Q: A6) Finance Today there is a clear consensus about the best way to design a central bank. What are…

A:

Q: How do monetary financial institutions create liquidity, pool risk, lower the cost of borrowing, and…

A: The monetary financial institutions such as banks, insurance companies, mutual funds, non-banking…

Q: Bank notes are a liability for a central bank. Select one: O True O False

A: Central bank is the apex financial institution which controls the distribution and production of…

Q: sing the macroeconomic environment of a bank explain if the economic environment enables an increase…

A: The macro-environment alludes to how the macroeconomic circumstances in which an organization or…

Q: what is the purpose of the national credit act

A: In a market, various acts are implements to protect the interest of the market participants. The…

Q: identify therelationship between money credit and financial institution

A: The financial institutions aim at increasing the monetary base of the economy but creating credit.

Q: The Federal Reserve system gets the money it needs for operating expenses (Remember, pick the…

A: In the United States the Federal Reserve System is the central banking system. It main objective is…

Q: How could the Bank of Canada decrease the money supply? by buying government bonds by decreasing the…

A: Money supply is the upward sloping curve (vertical line)  Money demand curve is the downward sloping…

Q: what it means for banks to engage in maturity transformation and what are the risks associated with…

A: A type of transformation whereby a bank or any similar institutions takes advantage of the upward…

Q: In recent years, which of the following has increased the most in quantitative easing by the central…

A: Quantitative easing (QE) refers to the part of central bank's monetary monetary policy. It is the…

Q: 3. How is the interest on reserve balances rate a reservation rate? a. Banks should not demand a…

A: Interest rate on reserve balances refers to the rate that is determined by the central bank when two…

Q: The federal funds rate is an interest rate that a bank charges another bank for overnight loans. O…

A: The given statement is true i.e. The federal funds rate is an interest rate that a bank charges…

Q: Discuss why an increase in the reserve requirement might lower the rate of return on deposits. How…

A: The reserve requirement is a monetary policy tool used by central banks to regulate the amount of…

Q: How does the government in our country do the financial supervision Explain the steps of it and take…

A: Government alongwith central bank does financial supervision by conducting survey of financial…

Q: l in the blanksS using the NUMBER that corresponds to the correct word or phrase in the word bank…

A: The Federal Reserve often referred to as the Fed is the Central Bank (13) of the United States. The…

Q: Among the reasons that led to the interest of the monetary and financial authorities in bank credit:…

A: C.Development of the national economy  Option c is most appropriate. Credit plays a crucial role in…

Q: What did the Federal Deposit Insurance Corporation and the Securities and Exchange Commission have…

A: The Securities and Exchange Commission (SEC) is an element of financial policy in U.S. , which…

Q: Discuss how the national credit act deals with information held by the credit bureaux

A: The National Credit Act, 2005 is aimed to provide betterment of credit market in terms of fairness,…

Q: The net interest margin of a bank is a function of A What they pay for wages and the revenue B Their…

A: The net earning margin refers to the difference between the interest which is paid and interest…

Q: Identify whether it is true or false BANK RATE IS A QUALITATIVE METHOD OF THE CREDIT CONTROL IN THE…

A: According to the given question Option is FALSE Reason BANK RATE IS NOT AN QUALITATIVE METHOD OF THE…

Q: 3. Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve…

A: The Federal Reserve Bank of New York collaborates with organisations from the public and private…

Q: Compare the structure and independence of theEuropean System of Central Banks and the FederalReserve…

A: Both the banks are central banks of their respective countries. The meetings of European council are…

Q: 3. In order to control credit, Reserve Bank of India should

A: To find : Steps taken by RBI to control credit.

Q: What are the sources of money for company investments? The sale of stocks The sale of bonds Loans…

A: The capital is an important factor that is required for a company to start its operation. The…

Q: When the Reserve Bank of Australia lends reserves to a private bank. 1, the funds are created using…

A: The Reserve Bank of Australia carries out financial strategy by embraced exchanges in homegrown…

Q: The federal funds rate  A. equals the discount rate. B. only matters to banks and has very little…

A: The Federal Reserve has the responsibility to manage the activities of commercial and financial…

Q: The selling and purchasing of government securities is known as a. Open market operations b. Cash…

A: The policy and operations given in the options come under the authority of the central bank of a…