13.) What are derivative securities? Why do they exist? 14.) 2020 was year the COVID-19 global pandemic. Specifically explain how both monetary and fiscal policy have been used in the United States as a reaction to date. 15.) What causes the basic changes to overall supply and demand for money and loanable funds?

Q: Statements When the Fed increases the money supply, short-term interest rates tend to decline. When…

A: Interest rates are a powerful tool to manage an economy. When economy is going through a certain…

Q: A government can increase the supply country's central bank to issue more simply telling the money.…

A: The Central Bank can increase the money supply by injecting fresh/new money into the market. Thus,…

Q: Suppose that the Fed wants to lower long-term interest rates and buys all the Treasury securities…

A: If the Fed buys all the Treasury securities that banks hold, it will increase the assets on its…

Q: A country experiencing high inflation would be more likely to intervene to strengthen its currency…

A: Approach to solving the question:Rational Detailed explanation:High inflation in a country is a…

Q: Under the gold standard, when annual goods production outstrips the annual production of gold the…

A: Under gold standard, a country's money was linked to the amount of gold that the country had.…

Q: Where did global financial crisis begin?

A: After the great depression of 1930 the global financial crisis was seen in 2007-2008 based on…

Q: How does the Fed stimulate the economy? How does the Fed affect interest rates?

A: The Fed refers to the Federal Reserve’s of the country which is used by the country to maintain…

Q: Which of the following is NOT usually associated with “financial risk”? a. A rise in the country’s…

A: Financial risk is the possibility of capital loss as a result of shifting market conditions.…

Q: Describe tools that the US Treasury and the Federal Reserve use to undertake restrictive monetary…

A: Following are the tools that the US Treasury and the Federal Reserve use to undertake restrictive…

Q: The Federal Reserve increasing interest rates in the hope that the dollar appreciates is an example…

A: The objective of the question is to determine whether the action of the Federal Reserve increasing…

Q: How Did the Government Respond to the Banking Crisis of 2023?

A: The bank crisis can hit the economy of the country and to the business very badly as everything is…

Q: As international monetary system is looking into moving forward towards digital transformation, What…

A: In general term, digital transformation is the process of converting manual  processes into…

Q: Assume that initially, the risk premium, ρ = 0 and that the domestic and foreign interest rates are…

A: The additional return or compensation that investors seek for accepting greater levels of risk in…

Q: What current rate environment is the US currently in by historical standards? (LOW, HIGH, AVERAGE)…

A: Note: Since you have posted a question with multiple sub-parts, we will provide the solution only to…

Q: Apart from risk components, several macroeconomic factors—such as Federal Reserve (the Fed) policy,…

A: The objective of the question is to determine the validity of the given statements based on the…

Q: Will National Debt in the U.S. will ever be 0?

A: Congress has made numerous attempts to reduce the national debt, but it has been unable to slow the…

Q: Expansionary monetary policy is aimed at ________ the federal funds rate and ________ the aggregate…

A: The basic purpose of expansionary policy is to raise aggregate demand for meeting the shortfalls…

Q: Covid 2008 financial crisis 2019 US-China trade war Tesla recalling 1,200 Model S due to potential…

A: There are two types of risk one is risk of overall market and one that is inherently to firm…

Q: The following information is available concerning the historical risk and return relationships in…

A: The geometric mean return takes into account the compounding effect of returns over time, while the…

Q: part-a: What is the difference between direct finance and indirect finance?  part-b: What are the…

A: Since you have posted a question with multiple subparts, we will solve first three sub parts for…

Q: Should the economy’s current fragile recovery gather momentum, it is likely the Federal Reserve will…

A: Federal bank had responsibility of monetary policy so do it by open market operations.