ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
When the Fed wishes to decrease the money supply, it can
a. |
increase the
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|
b. |
decrease the required reserve ratio.
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c. |
ask people to buy more bonds.
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d. |
turn additional funds over to the Treasury.
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- If the Bank of Canada performs an Open-Market-Sale with a member of the public, what is the effect on the banking system and the money supply? The banking system has fewer reserves, and the money supply tends to grow. The banking system has more reserves, and the money supply tends to fall. The banking system has more reserves, and the money supply tends to grow. The banking system has fewer reserves, and the money supply tends to fall.arrow_forwardSuppose the fed were to sell off $500 worth of used office furniture to private citizens. Explain why the money supply and bank reserves would decrease.arrow_forwardMonetary Policy. define the concept or idea. explain your new way of viewing or understanding the concept. What will you do differently? What follows. the reason why your perspective or understanding changed.arrow_forward
- I'd like help on b,c,darrow_forwardIf the Federal Reserve increases the discount rate from 14 percent to 16 percent banks will borrow Multiple Choice fewer reserves from the Fed and lending will increase. fewer reserves from the Fed and lending will decrease. more reserves from the Fed and lending will increase. more reserves from the Fed and lending will decrease.arrow_forwardIf the Fed wants to increase the money supply, it can decrease the federal funds rate. decrease the tax rate. sell bonds in the open market. increase the reserve requirement.arrow_forward
- To increase the money supply, the Federal Reserve could lower the required reserve ratio. conduct an open market sale of Treasury securities. raise the discount rate. raise income taxes.arrow_forwardIs the Federal Reserve Bank important to our economy? Choose a side and support your argument with 2 reasons. Be thorough. 1 paragraph.arrow_forwardWhat powers does the federal reserve have ?arrow_forward
- 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?arrow_forwardYou deposit a $1,000 scholarship check in the bank. If the required reserve ratio is 10 percent, explain how the banking system will create new money and how much money can potentially be created.arrow_forwardFederal funds are A) created as banks to lend out money. B) any funds printed by the federal government. C)private bank deposits at the Federal Reserve (Fed). C) Fed deposits at private banks. D) government agency deposits at the Fed.arrow_forward
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