Monetary base is held outside ?nancial institutions

Assignment Help Business Economics

Reference no: EM13898436

33 % of monetary base is held outside ?nancial institutions.

1. Where do you think this portion of the monetary base is held exactly?

2. Under what conditions might it return to the banking system?

Reference no: EM13898436

Questions Cloud

Educational system affected the quality of our labor force : How has the educational system affected the quality of our labor force? Explain the Malthusian theory of population. Is it relevant today anywhere in the world? Explain where and why. How does the American savings rate compare to that of other leadin..

What is the economists case for free trade : Explain why globalization is good for the United States. What are the drawbacks of globalization for our economy? We run huge trade imbalances with two countries. Explain the cause of the imbalances. What is the economist's case for free trade?

Exchange rate determined in freely floating rate system : Can there be a deficit on Current Account and a deficit on Capital Account at the same time? Explain. Explain why currency depreciation leads to an improvement in a nation's balance of trade. How is the exchange rate determined in a freely floating r..

Which economy is better off : Which economy is better off, country A, in which output is growing 6 percent per year with population growth of 4 percent per year, or country B, in which output is growing 4 percent per year with population growth of 1 percent per year?

Monetary base is held outside ?nancial institutions : 33 % of monetary base is held outside ?nancial institutions. Where do you think this portion of the monetary base is held exactly? Under what conditions might it return to the banking system?

Current account and capital account in balance of payments : What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital a..

Backward-looking expectations could be classified : Backward-looking expectations could be classified as a ________ theory.

The position of the demand for labor depends : Given the technology and the amount of other resources available, the position of the demand for labor depends on the

The lower the interest rate : The lower the interest rate:

User Account

All Pages