Fed actions will increase bank lending

Assignment Help Business Economics
Reference no: EM13984183

Which of the following Fed actions will increase bank lending?

You may select more than one answer.

The Fed raises the discount rate from 5 percent to 6 percent.

The Fed raises the reserve ratio from 10 percent to 11 percent.

The Fed lowers the discount rate from 4 percent to 2 percent.

The Fed buys $400 million worth of Treasury bonds from commercial banks.

Reference no: EM13984183

Questions Cloud

Steady-state equilibrium faster during post-plague period : In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
What is the minimum efficiency scale or output : Zeytoon manufacturing company is a foof producer operating out of Orange County California . The management team has estimated the following cost function: What is the minimum efficiency scale or output for this company?
Risk management approach to solve the risk-benefit problem : Name one drawback to using a risk management approach to solve the "Risk/Benefit Problem" of technology that we discussed in class.
Market regarding price and quantity determination : Describe in detail ow a perfectly competitive industry determines the price and quantity. Explain the role of the firm in this market regarding price and quantity determination. Show your answers utilizing a graph for the market as well as the firm.
Fed actions will increase bank lending : Which of the following Fed actions will increase bank lending?
Calculate growth rate of nominal GDP and constant GDP : Calculate the growth rate of nominal GDP and constant GDP for the period 1985-1995. Calculate the growth rate of nominal GDP and constant GDP per capita for the period 1985-1995. What is the current GNP in 1985 and 1995? calculate the growth rate of ..
More transactions occur in the economy : As income and the GDP increase, more and more transactions occur in the economy. These transaction demands for money are associated with money's property as a medium of exchange. Please comment on different type of these demands and provide some exam..
The economy to full employment GDP : Given the position of the economy in question one and that full employment GDP = 4000 explain how the following monetary policies would get the economy to full employment GDP A. Open market operations B. Discount rate C. Federal funds rate D. Require..
The economy by creating and issuing more money : Why is NOT a good idea for Federal Government to spend money, without paying for it in tax revenues and for the Federal Reserve to increase the money supply in the economy by creating and issuing more money?

Reviews

Write a Review

Business Economics Questions & Answers

  When the exchange rate falls by more in the short run

When the exchange rate falls by more in the short run than it does in the long run when the money supply increases, it is called.

  How many skate- boards will bruises and bumps sell

If the point cross-price elasticity of demand between the two companies is 0.5, how many skate- boards will Bruises and Bumps sell if Broken Bones lowers their price 5%?

  Illustrate what are the monopolist''s profit-maximizing price

Illustrate what are the monopolist's profit-maximizing price and total output.

  What is the natural rate of unemployment in examplestan

The country of Examplestan has 100,000,000 citizens. 50,000,000 are adults who are employed or are actively seeking work. 2 million have been laid off due to recession 1 million have quit their jobs to look for work in cities with better climates 1.5..

  Illustrate why does inflation affect the increase in social

Illustrate why does inflation affect the increase in Social Security and other benefits. Is this effect a cost of inflation, as the article suggests.

  What output level will you choose and what price will charge

Your diligent effort will allow you to decide how much of your product to provide and allow you to place it on market shortly before your competitor will be able to make its product available for sale. What output level will you choose and what pr..

  Forward rate by using the interest rate parity

Suppose the one-year interest rate on Swiss France is 10% and the US Dollar interest rate is 12% and the current $/SF spot rate is 0.8. What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forwar..

  Q1 1 what value enhancers affected your choice of the

q1. 1. what value enhancers affected your choice of the school you attend?2. did you consider size location price

  What is the current macroeconomic situation

What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

  True about the loanable funds market

Which of the following is (are) true about the loanable funds market?

  What is the importance of human capital

A perplexing issue, particularly for many human resource management and marketing professionals, is the absence of a valuation in the traditional financial statements relating to human capital and other internally generated intangible assets, such as..

  Moral hazards affect financial and labor markets

How do the concepts of adverse selection and moral hazards affect financial and labor markets? Which of these effects is the most significant? Why? What are the most significant effects of these concepts on organizations and individuals? Why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd