What is “bitcoin” and is “bitcoin” currently part of the money supply ? If bitcoin becomes increasingly popular what exactly would that do to the Federal Reserve’s ability to control or change the money supply? Would it affect the Fed’s ability to control or change the money supply? Exactly how? And would it affect it in a good or bad way? And why?

Q: 7.Yesterday Bank A had no excess reserves. Today it received a new deposit of $ 4,000. a. If the…

A: Hi, according to our guidelines we are allowed to answer only one question with three sub-divisions…

Q: What are the dangers of increasing the money supply too slowly? Too rapidly?

A: The money supply is a part of the monetary policy, a policy that increases the output and the…

Q: Discuss the three primary functions of money as well as the Federal Reserves measures of the…

A: Money is what money does. The functions of money are: 1) Medium of exchange: Money acts as the…

Q: Which of the following are included in the "currency" item in Federal Reserve's balance sheet? (a)…

A: The Federal Reserve, also known as the "Fed," is the central banking system of the United States. It…

Q: Does the Fed have control over the federal funds rate and over bank reserves? If so, can the Fed…

A: The Fed funds rate is the interest rate U.S. banks charge each other to lend funds overnight.

Q: Explain how banks have the ability to create money by assuming Bank A takes in a $10,000 deposit.…

A: In a fractional reserve banking system, banks are only required to hold a fraction of their deposits…

Q: Explain how to use the discount rate to expand the money supply.

A: If commercial bank purchase straight from the central bank, the discount rate is the interest rate…

Q: Describe how each of the following can affect the money supply: (a) the central bank; (b) banks; and…

A: The money supply is the total amount of currency and other liquid assets in a country's economy on a…

Q: Which of the following would not affect the money supply? Select one: a. An increase in the reserve…

A: In this case, we have to know the term money supply. Money supply is actually indicating the total…

Q: What are the two reasons that people want to hold money? In other words, what are the two types of…

A: In general, individuals prefer to have their cash on hand rather than deposit it in a bank. Cash or…

Q: If the Fed wants to decrease the quantity of​ money, what actions does it​ take?   What is the…

A: 1. When the Fed wants to decrease the quantity of money in the economy, it makes the open market…

Q: If the banks in this economy all hold 10% of the demand deposits as reserves, what is the money…

A: The Reserve ratio is the minimum portion of the money that the commercial banks need to hold to meet…

Q: How do each of the Fed's tools work?  What is the fractional reserve system, and how does it work in…

A: Fiscal policy refers to the method of government spending and tax policies to take control over the…

Q: Suppose the required reserve ratio is 3%. Assume banks, on average, hold 2% in excess reserves and…

A: Required reserve ratio is 3%.i.e., r = 0.03________________________________Banks holds 2% in excess…

Q: the Fed, and th es loans to Stev k. 2nd National account at 3rd M oply in this econ

A: In the economy, there is a sale of bonds worth $1000 to the Fed. This means the Fed bought the bonds…

Q: Political officials often call on the monetary authorities to expand the money supply more rapidly…

A: In short run, money is also like other commodity. The reason is, its increase in supply causes to…

Q: Does the money supply "Cash held by public" get included in the calculation of the federal reserve…

A: The reserve requirement is the amount that the commercial banks have to keep aside out of total…

Q: Central bank increased the loans to private banks. How would it affect private banks’ reserves:…

A: When central bank provide collateralized loans to banks, the asset side of the bank changes from…

Q: Assume the reserve requirement is 15%. If the Fed increases reserves by $30 billion, what is the…

A: The amount of liabilities or deposits kept in the commercial bank's safe is known as RRR. RRR has…

Q: Suppose you examine the central bank’s balance sheet and observe that since the previous day,…

A: The central bank conducted an open market purchase of $400 million with a commercial bank. The…

Q: The Federal Reserve buys $20.00 million in Treasury securities. If the required reserve ratio is…

A: Given  Required reserve ratio rr = 25% excess reserve ratio er = 10% part (a) When Federal Reserve…

Q: . if  the entire amount of excess reserves were loaned out, what would happen to Money supply?

A: Reserve are the part of deposit kept by the banks as per the rules of central bank.  Reserve is…

Q: How does adjusting the reserve requirements cause the money supply to expand or contract?

A: Reserve requirement is the percentage to the total deposit of commercial bank that has to keep with…

Q: In the website of Bangko Sentral ng Pilipinas. What is their role in regulating money supply?

A: The Bangko Sentral  Pilipinas (BSP) is the central bank of the Philippines, responsible for…

Q: Suppose the Federal Reserve sets the reserve requirement at 10%, banks hold no excess reserves, and…

A: The money multiplier alludes to the possible expansion in the money supply that can be created by…

Q: If the Federal reserve sets the required reserve ratio is set at something under 100%, banks can…

A: Required reserve ratio refers to a certain percentage of reserves to be maintained by the commercial…

Q: What is the definition of money?     part-b: What are the different functions of money?…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 subparts for you. If…