Shrink the size of the banking system balance sheet

Assignment Help Business Economics
Reference no: EM131009982

The public cash withdrawals from banks decrease the central bank liabilities and shrink the size of the banking system balance sheet. Do you agree or not? Explain your answer. Use the Fed and the banking balance sheet to support your answer.

Reference no: EM131009982

Questions Cloud

What is the remaining balance that must be paid off : An firm borrowed $172,000 to remodel their office. The load was to be paid back in equal monthly payments over 30 years at 6% interest, compounded monthly. After 5 years, the firm wants to pay off the loan. What is the remaining balance that must be ..
An expansionary fiscal policy at home : An expansionary fiscal policy at home (reduce taxes and/or raise public expenditures) will, other things equal, lead to an (a) appreciation, or (b) depreciation of the country’s real exchange rate. Mark the correct answer and explain it.
Output gaps are caused by inflationary pressures : Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy. A low level of aggregate spending can cause real GDP to fall below potential output. When spending is high, output may rise above potentia..
Sensitive assets and fewer rate-sensitive liabilities : Briefly explain whether you agree with the following statements: a. “ A bank that expects interest rates to fall in the future will want to hold more of rate -sensitive assets and fewer rate- sensitive liabilities” True or false b. “A bank that expec..
Shrink the size of the banking system balance sheet : The public cash withdrawals from banks decrease the central bank liabilities and shrink the size of the banking system balance sheet. Do you agree or not? Explain your answer. Use the Fed and the banking balance sheet to support your answer.
Units of each component should be ordered from each supplier : Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company’s needs. In addition, the suppliers charge different prices for the componen..
Households become concerned about social security : Shift the supply or demand for loanable funds functions to reflect the impact of the shock. Indicate whether the real interest rate and the quantity of loanable funds Rises or Falls. Households become concerned about social security and decide to sav..
Brief verbal explanation to comments on governments claim : Suppose the government in a very small country charges tax on some kind of food and has collected tax revenue based on that. Under the pressure of vigorous protest, it declares to return all the tax collected to the buyers and sellers of this food ba..
Affect consumer surplus and producer surplus in both markets : Suppose PlayStations and PlayStation games are complementary goods. Now there is a technological advance in the production of PlayStations. Use a supply/demand diagram of PlayStations market and a supply/demand diagram of PlayStation games market to ..

Reviews

Write a Review

Business Economics Questions & Answers

  Differences in the dominant religion and social structure

What are the implications for international business of differences in the dominant religion, social structure, and educational systems of a country? How do religion, social structure, and education combine to form a system that defines the culture o..

  Marginal utility for cups of coffee is constant

Suppose that Omar’s marginal utility for cups of coffee is constant at 4.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 11 for the first doughnut he eats, 10 for the second he eats, 9 for th..

  Equilibrium wage is higher or lower than two

Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.

  What response can an economist make to this person

It is not uncommon for someone to say something like “if we can put a man on the moon we should be able to… ”, followed by the person’s favorite project. What response can an economist make to this person?

  Do these firms have an incentive to reduce their pollution

Consider a competitive market that all the firms in this market vent an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is tis outcome efficient? Explain with the help of a diagram. Do these firms have an ..

  What is perfectly competitive market equilibrium wage

The labor market for NBA players is perfectly competitive. The Labor Supply curve is Q= -20+3w. The marginal expenditure curve is ME= (2Q+20)/3. The Labor Demand curve is Q=125-2w. The Marginal Curve is MR= (125-2Q)/2. Both the players and owners do ..

  What is the equilibrium price and quantity of hangers

Suppose that the inverse demand for clothes hangers is given by: P = 3 − Q/16,000. Suppose further that the marginal cost of producing hangers is constant at $1. What is the equilibrium price and quantity of hangers if the market is competitive?

  Opportunity cost to providing this support from government

The radio manufacturing industry has been in decline for quite some time. Suppose the government is called on to save this industry with infusions of cash, low interest loans, or other special breaks. This might be touted as helping firms remain open..

  What are the factors that affect consumer spending

What causes movement along AD curve? What causes a shift in the AD curve? What are the factors that affect consumer spending ( C)? What are the factors that affect changes in Investment spending (I)?

  Smallcomponent of what makes country economically successful

We see the U.S. tends to import more goods than they export. Regardless of the imbalance of trade the U.S is still an economically competitive country. Do you think trade is just a small component of what makes a country economically successful?

  Illustrate causes changes in expenditure components of gdp

Illustrate what do you think causes changes in each of the expenditure (spending) components of GDP thereby causing changes in our economy's output, employment, and income levels.

  Discuss the pros and cons of monopoly structures

Discuss the pros and cons of monopoly structures. Cite the forces that influence the supply of labor. Explain why the labor demand curve slopes down word

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