Which of these is most likely an effect of a decrease in the prime lending rate by the Federal Reserve System in a growing economy? Savings accounts will earn more money The rate of inflation will increase. Businesses will begin to lay off employees. The value of the U.S. dollar will increase.

Q: Commercial banks create money through Group of answer choices facilitating borrowing from the…

A: Commercial banks accept the deposit of people and grants loans to people too.  Commercial banks have…

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: Overnight loans issued by the Federal Reserve to commercial banks are known as   A. Negotiable…

A: The overnight loans issued by the Federal Reserve to commercial banks are known as Federal Funds.…

Q: The discount rate is the rate at which: the Fed lends to the other depository institutions. the…

A: Discount rate is also known as bank rate.

Q: How many banks failures occurred in the United States during 2021?

A: A bank failure occurs when a bank becomes insolvent. Under such circumstances, the bank is unable to…

Q: According to Lawrence White in "How Common Has Private Currency Been?" The private sector can…

A: It can be described as the tangible, physical forms of money that are used in the exchange of…

Q: The fed keeps an eye on the national economy. True or fals

A: The Fed is a "central bank" of nation A and is responsible for controlling monetary policy and the…

Q: As a "lender of last resort" the Fed  :protects the deposits of $100,000 or less in all commercial…

A: A lender of last resort is an institution, that offers loans to commercial banks or other depository…

Q: Which of the following statements were TRUE? The United States became a net creditor country after…

A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…

Q: Due to the huge inflow of money to Spain, price levels have begun to increase. The government…

A: Monetary policy is used to change the money supply according to the economic situation. The central…

Q: With the use of a central bank, which of the following becomes less and less important over time?…

A: The question is asking which of the listed items becomes less important over time with the use of a…

Q: The purchase of government securities from the public by the Central Bank will cause: the money…

A: The purchase of government securities from the public by the Central Bank is the monetary policy…

Q: effect of fiscal and monetary policy on money supply in zimbabwe

A: Macroeconomic difficulties comprise obstacles that have a significant impact on the general…

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: Money is: the same as income. anything that is commonly accepted as medium of…

A: Money is a commodity is used to conduct daily transactions of goods and services. Money can be in…

Q: What can the Fed do to reduce inflation when the government is spending too much money in the…

A: Inflation: It refers to a situation in which the prices of the goods and services in the economy…

Q: Explain three impacts of a commercial bank on a country's economy.

A: Commercial banks play a significant role in a country's economy, and their activities can have both…

Q: Economics After falling in half from 1947 to the 1970s (around 10 percent to 5 percent), the share…

A: A financial crisis refers to a significant disruption or collapse in the financial system of a…

Q: How does the Central Bank affects the interest rate?

A: Money Supply: It is the total quantity of money in the economy at a point in time. Money supply and…

Q: The central bank decided to raise interest rates when it wanted to reduce aggregate demand to fight…

A: Introduction Central bank is the head bank of the country all the commercial bank and public sector…

Q: Write two to three paragraphs explaining how J. P. Morgan helped the U.S. economy. Your response…

A: Morgan had deep and extremely beneficial connections with the London financial world as a result of…

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: are immune from the effects of monetary policy. advise the Fed on monetary policy. O. vote on…

A: The member banks of the federal reserve system would result in the part of the body of the central…

Q: The reserve ratio is the fraction of deposits that banks   a.Hold in order to maintain the…

A: The ‘reserve’ requirement ratio is the bare minimum amount of ‘deposits that the commercial banks…

Q: The pandemic has impacted the use of currency in our economy. Explain in your own words, how the…

A: The number result is associate degree economic phrase that refers to the proportional increase or…

Q: There is monetary equilibrium in the economy. The total currency in the economy is $6 million, of…

A: The total currency in the economy is $6 million,  public holds $4 million. The commercial banks’…

Q: What are the tools the reserve bank is using in Australia to run a monetary policy?

A: There are four primary tools for the central bank of any country to have control in the money…

Q: Why does a country need a Central Bank?

A: The central bank is an apex financial institution of a country.

Q: If a bank expects inflation to increase in the near future, how will it respond? It will start…

A: Inflation's effects and the function of banks in the overall economy are strongly related. To…

Q: If the Federal Reserve decides to raise the interest rate to solve a potential inflation problem,…

A: In the United States, if Federal Reserve raised interest rate to deal with inflation, it is known as…

Q: what kind of monetary policy can be used to fight against recession and depression

A: Recession is a temporary period of economic decline which leads to a fall in GDP for two successive…

Q: What backs the U.S. dollar? Include the distinction between commodity money and fiat money in your…

A: An economic unit is considered to be money when it tends to function in an economy as being a medium…

Q: The role of IMF in Central banking

A: The IMF is an organization that was established in 1944 in the post wars settlement of the economy…

Q: What would happen if the federal reserve created too much, or not enough, currency over a given…

A: By regulating the money supply, the Federal Reserve seeks to regulate the U.S. economy, as is the…

Q: ou find a $1,000 bill hidden beneath the floorboards in your house and decide to deposit it in your…

A: Money is a medium of exchange that is broadly acknowledged in transactions for goods and services.…

Q: The fed is an independent voice for the government. True or false

A: The Federal Reserve Banks are not considered as a part of the federal government, but they exist…

Q: How the Bank of Canada might attempt to stimulate an economy that is going through a period of…

A: Bank of Canada can implement monetary policy during the period of contraction.

Q: The regional Federal Reserve Banks hold deposits for individuals and the commercial banks in their…

A: In the United States, regional Federal Reserve Banks refers to the banks associated in a specific…

Q: In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all…

A: The money is a medium of exchange which is used as a payment for the purchase of various goods and…

Q: In general, when there is less competition in the banking sector ( a lower supply of firms),…

A: It can be defined as a raw percentage by which the value of money will grow in the market in a given…

Q: Why do you think politicians pursue policies that lead to hyperinflation?

A: Hyperinflation is a phrase used to characterise an economy's rapid, out-of-control overall price…

Q: Which one is correct? UK currency is a commercial bank liability UK currency is a central bank…

A: the central bank of England is known as the Bank of England.  Laid out in 1694 to go about as the…