What happens to the market demand for these funds?

Reference no: EM13173432

1. Why do you suppose that the market clearing interest rates on bank savings and time deposits have been rising relative to the market clearing interest rates on bank loans? (Hint: as more chief deposit officers compete for depositors%u2019 funds, what happens to the market demand for these funds?)

2. Can you provide one possible explanation for why currency as a percentage of M1 has generally increased for the past 20 years? (Hint: What is the other primary component of M1, and what has happened to its growth during the past 20 years?)

Reference no: EM13173432

Questions Cloud

What is the inverse demand function? : What is the profit maximizing price and quantity of output for Ajax, assuming it is an unregulated monopoly? What are its profits?

Explain craft unions : Both industrial unions and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the diffeence in approaches and describe the impact these differences have on excess quantity of labor supplied.

How do insurance companies try to reduce these problems? : Define asymmetric information. Distinquish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal agent problem?

Present values of interest rates for different years : suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or Why not?

What happens to the market demand for these funds? : Why do you suppose that the market clearing interest rates on bank savings and time deposits have been rising relative to the market clearing interest rates on bank loans?

State crystalline solids are well-ordered arrays of atoms : Crystalline solids are well-ordered arrays of atoms or molecules. Crystalline solids may be metallic solids, molecular solids, or ionic solids.

State the addition of naoh does not change the volume : what will the pH be after mixing the 100 ml of HCl solution and the solid NaOH together? Assume the addition of NaOH does not change the volume. (Molar Mass NaOH= 40.00 g/mole : Molar Mass HCl = 36.46 g/mole

How many doritos chips would you have to burn to heat up : HOw many Doritos chips would you have to burn to heat up a pool with the dimensions 50' by 20' by 8'? 37.57 kilocalorie/gram and 75.52

Ethical missteps by companies for safety-related issues : What are the facotrs involved? What were the circumstances? How was the dilemma handled? What were the consequences?

User Account

All Pages