U Search thị Aplia Homework: Money and the Financial System Attempts Keep the Highest/2 4. The structure of the Federal Reserve Which of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply. O Price stability O Economic growth O Zero unemployment O Interest rate stability O Zero inflation Which of the following contributes to making the Federal Reserve an "independent" policymaking body? O There are 12 different Federal Reserve banks. O Its role is written into the U.S. Constitution. O Members of the Board of Governors are appointed for 14-year, nonrenewable terms. Grade It Now Save & Continue Continue without saving rch

U Search thị Aplia Homework: Money and the Financial System Attempts Keep the Highest/2 4. The structure of the Federal Reserve Which of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply. O Price stability O Economic growth O Zero unemployment O Interest rate stability O Zero inflation Which of the following contributes to making the Federal Reserve an "independent" policymaking body? O There are 12 different Federal Reserve banks. O Its role is written into the U.S. Constitution. O Members of the Board of Governors are appointed for 14-year, nonrenewable terms. Grade It Now Save & Continue Continue without saving rch

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the folloving represents a change in today's banking policies that should prevent a recurrence of the bank panics of 1930-1933? O A. banks are more cautious lenders O B. banks keep large amounts of excess reserves on hand O . the FDIC insures bank deposits and therefore depositors do not panic and rush to withdraw money when individual banks have financial problems O D. the President now has the authority to close banks whenever panics occur
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio, carefully following all numeric instructions. Do not convert the ratio into percent. In other words, if you get k of 0.99, enter only 0.99 in the blank.
According to the Quantity Theory of Money, if the velocity of money is constant, and if the money supply increases, while at the same time real GDP decreases, then, ceteris paribus, it follows that in the long run: Select one: O a. the price level will increase - i.e. the economy will experience inflation. O b. the price level will decrease - i.e. the economy will experience deflation. O c. nominal GDP must be decreasing. O d. none of the above is mathematically possible.
QUESTION 19 Bank run refers to that O A. the central bank raises the reserve ratio of banks in the time of financial crisis. O B. the central bank runs to bail out banks. O C. many banks' depositors try to withdraw their funds because they fear a bank failure. OD. investment banks and hedge funds lend to each other on very short terms. QUESTION 20 Which of the following is true about the money creation by banks? O A. Money creation is the process of changes in the money supply through depositing and lending in a fractional-reserve banking system. O B. The amount of money as an asset increases, making the economy wealthier. O C. The central bank increases the monetary base. O D. Depositors withdraw funds from banks, holding them in cash.
D) what kind of monetary policy might be helpful to stabilize the economy ( expansionary or contractionary)? E) what specific monetary policy tools does the federal reserve have available to use in this scenario? F) explain in detal, how should the federal reserve use each ofthese tools to maximize their effect in stabilizing the economy, what will be the likely effect of each monetary tool's use on the money supply , and the resulting impact on the economy
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If the Fed sells U.S. government securities to banks, the federal funds rate and banks' reserves O a. rises; increase O b. rises; decrease O c. falls; decrease O d. falls; increase O e. rises; do not change
Which of the following is NOT a function performed by a central bank? O a. Serving as a lender of last resort to commercial banks O b. Taking the deposits of commercial banks Making profits for its shareholders O d. Regulating the money supply
2. The Federal Reserve's Board of Governors consists of _____ members who are appointed by the _____ and confirmed by the _____. a. seven; Senate; president b. five; president; Senate c. seven; president; Senate d. twelve; Congress; president
One of the ways the Fed could implement a contractionary monetary policy is to: O A. Increase the money supply. B. Lower the required reserve ratio. C. None of these. O D. Buy T-bonds. E. Increase the discount rate.