Theoretically serve as a floor for the fed funds rate

Assignment Help Business Economics

Reference no: EM13854023

1. Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate?

The discount rate

U.S. dollar Libor

The rate of interest on excess reserves (IOER)

2. If a security dealer "repos securities," they are a

borrower of collateral.

borrower of funds.

lender of funds.

3. A dealer is said to be running a "matched book" if

if the dealer's total assets equals total liabilities plus equity.

a 3 month loan to Bank A is funded with a 2-month loan from Bank B.

if the dealer's assets and liabilities are matched in terms of market value.

if the dealer's assets and liabilities are matched in terms of maturity.

4. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds rate.

True

False

Reference no: EM13854023

Questions Cloud

How processes interact and impact our employees : Discuss the pros and cons of the tool providing evidence and examples of the use of the tool. Provide recommendations to a future tool user

The demand for the product of business : The demand for the product of a business is given by q = 50 - 2p. If the price of the product is p = 10 dollars, the revenue is

What is the standard deviation of individual bags : Calculate the Range Column in Excel and find mean and standard deviations for Average Weight, Smallest, Largest, and Range columns and What is the standard deviation of individual bags if sample averages are based on 6 bags.

Prepare the required aje for wannebee corporation : Prepare the Required AJE for WanneBee Corporation

Theoretically serve as a floor for the fed funds rate : Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..

When entrepreneurs are investing their own money : When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.

Demand is inelastic and marginal revenue is negative : If a monopolistic firm (price searcher) can sell 9 units at a price of $100 each but must reduce its price to $80 in order to sell 10 units, then Demand is inelastic and marginal revenue is negative. Marginal revenue is falling but is above price

Resulting equilibrium cause in the market : During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these ..

Higher or lower than the old equilibrium price : During the last year, the demand for books has been falling. At the same time, some industry observers expected that several smaller book manufacturers might exit the market due to the strong competition imposed by Kindle. Can you tell for certain wh..

User Account

All Pages