Description : Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?
Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.
Description : If the federal reserve buys a treasury bond from a bank what will be the effect on interest rate the bank charges its customers for a loan?
Last Answer : The interest rates will decrease since there are more available funds for the bank to loan.
Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above
Last Answer : c. buy Treasury securities in the open market
Description : Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal Reserve increases the money supply of the United States. Under a floating exchange-rate system, the ... C. Be officially devalued by the government D. Be officially revalued by the government
Last Answer : B. Depreciate in value relative to other currencies
Description : If the federal reserve sells 40000 in treasury bonds to a bank at 5 interest what is the immediate effect on the money supply?
Last Answer : Feel Free to Answer
Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral
Last Answer : c. reserves
Description : How has the Federal Reserve System managed since its inception?
Last Answer : answer:It seems to me a strong Federal Reserve System established and then enhanced under the Glass Stegall Act led the way out of the Great Depression (along with tremendous government borrowing and ... there are people who would think the economy functions better now that it has been weakened.
Description : Why does the Federal Reserve have a monopoly on the issuing of American Currency?
Last Answer : What leverage would you use to control inflation and the money supply if you couldn’t set rates?
Description : Why do older US dollars say "this note is legal tender for all debts, puiblic and private, and is redeemable in lawful money at the US treasury or at any federal reserve bank?"?
Last Answer : I believe at that time we were on the gold standard and the money could be exchanged for the appropriate amount of gold. I’m trying to find a bit more info right now here. When we went off the gold standard, this would no longer have been true.
Description : Board of Governors of the Federal Reserve System - Mortgage Foreclosure Do You Care
Last Answer : i am a dumbass he he. i made the question and suddenly POOF the answer button grabbed my attention… please move along…
Description : the federal reserve _____ the money supply to lower inflation. -General Knowledge
Last Answer : The Federal Reserve reduces (decreases) the money supply to lower inflation.
Description : What monetary policy strategy of the federal reserve do these headlines reflect?
Last Answer : Encouraging business growth by putting more money into circulation
Last Answer : The name of the central bank of the United States is the Federal Reserve System.
Description : why has the dollar value decreased after the federal reserve system why is this true?
Last Answer : Need Answer
Description : What describes the primary role of the Federal Reserve?
Last Answer : Need answer
Description : How much is a 1928 A 100 dollar federal reserve note worth?
Description : What is the value of 1934 A green seal federal reserve note?
Description : What was the federal reserve was designed to?
Last Answer : Financial panicsBankruptciesBoom and bust economyfinacial panics
Description : Has the Federal Reserve increased the rates for small business loans, and if so by how much?
Last Answer : The Federal Reserve does not set the rates for small business loans. They set the Federal Discount Rate-- the rate at which banks may borrow directly from the Fed. Since this is the rate ... they always charge more than this rate for loans. SBA.gov administers Federally Backed small business loans.
Description : Which of the following is one way the Federal Reserve Bank serves the government?
Last Answer : selling government securities
Description : What does “lender of last resort†mean with respect to the Federal Reserve?
Last Answer : It will lend money to a bank in a financial emergency.
Description : What is the makeup of the Federal Reserve Districts?
Last Answer : Each district is made up of more than one state. Federal Reserve Districts include a mixture of agricultural, manufacturing, and service industries as well as rural and urban areas.
Description : What will the federal government (Federal Reserve Bank) do in an attempt to encourage saving and investing?
Last Answer : raise dividend rates
Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above
Last Answer : a. it is a system of 12 central banks
Description : ___________ can be used as a standard to measure the efficiency of an economy 1. Cash reserve ratio 2. Exchange rate ratio 3. Incremental capital output ratio 4. Profit ratio 5. None of these
Last Answer : Incremental capital output ratio
Description : If the reserve rate is at 9 and a bank receives a deposit of 8000 how much of the 800 is the bank free?
Last Answer : $7280, 9% of 8000 is 720 and they are free to loan everything except the $720.
Description : What type of money does The money multiplier effect shows that when a bank has a lower reserve rate they are able to generate what money?
Description : Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%
Last Answer : Answer: 40%
Description : Which of the following is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934? A. Bank rate B. Reverse Repo Rate C. SLR D. CRR E. None of the Above
Last Answer : D. CRR Explanation: CRR is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934. There is no minimum & maximum level of CRR. We could go upto zero CRR (negative values are of course absurd).
Description : Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance
Last Answer : (A) Cash reserve
Description : What is the interest rate at which banks borrow money from Reserve Bank of India (RBI) called?
Last Answer : Repo Rate
Description : CRR means (a) Cash Reserve Ratio ; (b) Current rate of return ; (c) Cumulative rate of return; (d) Current rate of Rupee
Last Answer : (a) Cash Reserve Ratio ;
Description : Is the Federal Government directly responsible for America's unemployment rate?
Last Answer : I think we've come to a point in society where technology has replaced a lot of manual labor required jobs. I don't believe its the federal government. I think for the most part the government still ... cheap labor/greed. It's no ones fault, its just the way of progress. Life is a sacrifice.
Description : How would you rate the FAMS?(Federal Air Marshal Service)
Last Answer : Can you provide a link? I’d like to read the article. Sure doesn’t sound like FAMS is working, though.
Description : I am unemployed. Do I pay federal tax on interest rate income i make from investing in treasury notes?
Last Answer : I would check the IRS website….but you probably do have to pay taxes on that income if it exceeds a certain amount.
Description : In the federal government what gs rate is DR-03 equivalent to?
Description : Why does the federal government watch the rate of inflation so closely?
Last Answer : What is the answer ?
Description : What is the interest rate on federal student loans?
Last Answer : The current interest rate on direct subsidized federal Stafford loans for undergraduate students is 3.4%. The interest rate for graduate and professional students and on all unsubsidized loans is 6.8%.