Explain factors which influencing excess reserve

Assignment Help Macroeconomics

Reference no: EM1314367

Analyze the factors that influence the banks desired excess reserve ratio, r_e. What would happen to the magnitude of r_e if:

a) The Fed surprises financial markets by sharply boosting the discount rate?

b) The FDIC reduces the deposit insurance ceiling from $100,000 to $1,000?

c) Short-term interest rates rise sharply?

d) The economy slumps into a Japanese-style deflationary spiral

Reference no: EM1314367

Questions Cloud

Intermediate target variable of monetary policy : Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.

Purpose an income statement through gross profit : Purpose an income statement through gross profit and Prepare an income statement through gross profit for the year ended December 31, 2007

Computation par value of bonds : Computation par value of bonds and What is the bond's annual coupon interest rate

Confidence interval to estimate the population proportion : Would it be reasonable to conclude that the 5 percent of the employees are not able to pass the random drug test?

Explain factors which influencing excess reserve : Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:

Assigning responsibilities in responsibility centers : Assigning responsibilities in various responsibility centers and Advertising is handled by the corporate marketing departments, but the sales office controls a SMALL operating budget for entertainment expenses.

Computation of new price of bonds : Computation of new price of bonds and the market interest rate on these bonds has dropped to 6%

Hypothesis test for difference between population proportion : Using alpha = 0.05 and a computed value of +4.49, can we conclude that the percentage of claims for married policyholders is less then for single policyholders?

Two linear systems : Two linear systems.

User Account

All Pages