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 : 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 he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above
Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.
Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above
Last Answer : lower cash reserve ratio
Description : The strategic petroleum reserve was created to lower oil prices during supply disruptions .How much did the US spend to build and fill the SPR? • $980 billion • $2 million • $4.5 billion • $22 billion
Last Answer : • $22 billion
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 : 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 : The process of curing inflation by reducing money supply is called - (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : (3) Disinflation Explanation: Disinflation is a decrease in the rate of inflation -a slowdown in the rate of increase of the general price level of goods and services in a nation's gross ... a very short period of time. Disinflation takes place only when an economy is suffering from recession.
Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.
Description : Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.
Description : In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.
Last Answer : (2) increases Explanation: Money supply is the total amount of monetary assets available in an economy at a specific time. The relation between money and prices is historically associated with the quantity ... money-supply growth, at least for rapid increases in the amount of money in the economy.
Description : Inflation is caused by - (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : (1) increase in money supply and decrease in production Explanation: Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of ... few goods. The increase in money supply is not matched by the equivalent production of goods.
Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three
Last Answer : ; (d) All or any of the above three
Description : Inflation is caused by (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : increase in money supply and decrease in production
Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : decreasing money supply
Description : In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.
Last Answer : increases
Description : The process of curing inflation by reducing money supply is called (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : Disinflation
Description : Which of the following can be used for checking inflation temporarily ? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : Decrease in money supply
Description : Why does the federal government watch the rate of inflation so closely?
Last Answer : What is the answer ?
Description : Money supply is governed by the - (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks
Last Answer : (3) Reserve Bank of India Explanation: In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It is governed and ... Reserve Bank of India regulates money supply in India through its several policy rates and reserve ratios.
Description : 8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000
Last Answer : d. $10,000
Description : Money supply is governed by the (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks
Last Answer : Reserve Bank of India
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
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 : 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 : 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 : 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 : If the federal reserve decreases the reserve rate from 5 to 2?
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 : 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 : 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 : Inflation occurs when aggregate supply is - (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : (2) less than aggregate demand Explanation: If the supply is less than the demand, the price will increase. Inflation, the persistent increase in the average price level, can be ... Translating this to the macro-economy suggests that inflation occurs when aggregate demand exceeds aggregate supply.
Description : Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve
Last Answer : (4) Phillips curve Explanation: The Phillips curve shows the inverse relationship between inflation and unemployment: as unemployment decreases, inflation increases. The relationship, however, is not linear. Graphically, ... unemployment rate is on the x-axis and the inflation rate is on the y-axis.
Description : The supply-side measure to control inflation is - (1) Reducing public expenditure (2) Price control through Public Distribution System (3) Higher taxation to mop up liquidity (4) Credit control
Last Answer : (2) Price control through Public Distribution System Explanation: The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure ... rice and wheat resorted to by FCI from its buffer stock in times of price rise.
Description : PSA 315 requires that the auditor should obtain an understanding of relevant industry, regulatory and other external factors including the applicable financial reporting framework. Which of the ... Inflation and currency revaluation c. Market and competition d. Cyclical or seasonal activity
Last Answer : Inflation and currency revaluation
Description : Inflation is caused by certain factors 1. Those causing an increase in demand 2. Those a short, fall in supply 3. Structural rigidities in the economy 4. All of these 5. None of these
Last Answer : Those causing an increase in demand
Description : The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection
Last Answer : c) Stabilization