What are the main functions of a Central Bank?To reduce unemplayment, promote financial stability, and provide banking services for depositoryinstitutions and the federal governmentTo reduce unemployment, control inflation, and promote financial stabilityTo decrease inflation, promote financial stability, and provide banking services for depository institutionsand the federal governmentTo conduct monetary policy, promote financial stability, and provide banking services for depositoryinstitutions and the federal governmentPrior to the 2008 financial crisis, how did the selling of bonds by the Fed impact the economy?It increased the amount of money circulating in an economy and increased the interest rateIt decreased the amount of money circulating in an economy and increased the interest rateIt increased the amount of money circulating in an economy and decreased the interest rateIt decreased the amount of money circulating in an economy and decreased the interest ratePrior to the 2008 financial crisis, if the central bank is interested in performing an expansionarymonetary policy, which of the following methods could it adopt?Buying bonds, increasing the discount rate, or decreasing the reserve requirementO Buying bonds, decreasing the discount rate, or decreasing the reserve requirementSelling bonds, decreasing the discount rate, or increasing the reserve requirementSelling bonds, increasing the discount rate, or increasing the reserve requirementO O

Money is important as it is used to make daily transactions and for making payments. It represents…

What are the main functions of a Central Bank? To reduce unemployment, promote financial stability, and provide banking services for depository institutions and the federal government To reduce unemployment, control inflation, and promote financial stability To decrease inflation, promote financial stability, and provide banking services for depository institutions and the federal government O To conduct monetary policy, promote financial stability, and provide banking services for depository institutions and the federal government

What are the main functions of a Central Bank? To reduce unemployment, promote financial stability, and provide banking services for depository institutions and the federal government To reduce unemployment, control inflation, and promote financial stability To decrease inflation, promote financial stability, and provide banking services for depository institutions and the federal government O To conduct monetary policy, promote financial stability, and provide banking services for depository institutions and the federal government

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following is the most accurate description of events when monetary authorities increase the size of commercial banks' excess reserves? Select one: a. The money supply is decreased, which increases the interest rate, and causes investment spending, output, and employment to decrease b. The money supply is increased, which decreases the interest rate, and causes investment spending, output, and employment to increase c. A rise in interest rates increases the money supply, causing a decrease in investment spending, output, and employment d. A fall in interest rates decreases the money supply, causing an increase in investment spending, output, and employment
Q.15. The Federal Reserve System is the central bank of the United States, and institution established by the Federal Reserve Act of 1913, the parameters of which can be amended by Congress. As a central bank, the key functions of the Fed are to: To conduct monetary policy, support financial system stability and provide banking services to banks and the federal government To conduct fiscal and monetary policy To advise the President and Congress on economic policy 4. To managing and monitoring the money supply. select one and explain
Panamanian currency, the balboa, is fixed at one-to-one to the U.S. dollar which is also a legal tender in the country. Panama does not have a central bank. Explain why a central bank is not needed and the advantages and disadvantages of this monetary system..
Which of the following is an important role of the Federal Reserve? Responses regulating the supply of money in the economy regulating the supply of money in the economy making policy decisions based on the President’s policies making policy decisions based on the President’s policies monitoring the health of banks monitoring the health of banks making loans to consumers
Federal funds are A) created as banks to lend out money. B) any funds printed by the federal government. C)private bank deposits at the Federal Reserve (Fed). C) Fed deposits at private banks. D) government agency deposits at the Fed.
The Fed can put more reserves into the banking system by: Group of answer choices Purchasing government securities Increasing the discount rate Selling government securities Lending to nonbank
11. Commercial banks: implement monetary policy. are nonprofit organizations that lend and borrow funds. are financial intermediaries that lend funds and accept deposits. all of the above.
Monetary base or high powered money refers to A. currency and checkable deposits issued by the Central Bank B. currency and reserves issued by the Central Bank C. currency issued by the Central Bank and checkable deposits issued by banking institutions D. currency issued by the Central Bank and reserves held by banking institutions
Which of the following is a potential operating instrument for the central bank? Question content area bottom Part 1 A. Nominal GDP B. The discount rate C. The monetary base D. The M1 money supply
39. Which of the following are ways in which banks can help businesses in the United States? Choose all that apply. Banks can reduce the money supply through the use of the money multiplier. Banks can serve as a stopgap to save struggling businesses from bankruptcy with small loans. Bank loans remove personal liability from company owners. O Bank loans are tax-deductible for businesses.
In the economy, the following statistics describe the money supply: CU = $1,500 billion RES= $200 billion DEP = $4,000 billion Given these data, calculate the amount of the monetary base: BASE = $ billion Calculate the quantity of the money supply: M = $ billion Calculate the ratio of reserves to deposits: res= (Enter your answer rounded to the four decimal places.) Calculate the ratio of currency to deposits: cu = (Enter your answer rounded to the four decimal places.) Calculate the money multiplier: mm = =(Enter your answer rounded to the four decimal places.) Now, suppose the central bank engages in open market sales in the amount of $25 billion. Suppose that when this happens, both cu and res do not change. However, the bank's open-market sales will affect M, CU, RES, and DEP. Calculate the new value of the monetary base: BASE=$ billion
Which of the following is NOT a function of the Fed? Offering checking accounts to the U.S. public O Regulating the money supply in the economy Acting as the federal government's banker O Providing a system of check collection and clearing for depository institutions