i need the answer quickly 1- Which of the following are the threepowers of the Federal Reserve Bank? (Indicateall that apply.)Conduct Open Market OperationsSet the Discount RateRegulate the stock and bond marketsSet the Required Reserve RatioSet the Federal Funds Overnight Rate and thePrime Rate

Federal Reserve bank regulating the bank other financial institution to maintain the economy better…

Answered: 1- Which of the following are the three…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 13P

See similar textbooks

Similar questions

List the three traditional tools that a central bank has for controlling the money supply.
How is bank regulation linked to the conduct of monetary policy?
Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent: Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately: Select one: a. $120,000 b. $213,333 c. $333,500 d. $415,373
Marly Bank currently has $650M in transaction deposits on its balance sheet. The current reserve requirenment is 10 percent, but the Federal Reserve is decreasing this requirement to 9 percent. Show the balance sheet for the federal reserve and Marly Bank if Marly Bank converts all excess reseves to loans, but borrowers return only 60 percent of these funds to National Bank as transaction deposit.
Suppose a bank discovers that its reserves will temporarily fall slightly short of those legally required. How might it remedy this situation through the Federal funds market? Now assume the bank fifinds that its reserves will be substantially and permanently defificient. What remedy is available to this bank? (Hint: Recall your answer to question 4.)
List the names of the current chairperson of the Federal Reserve and members of the Board of Governors of the Federal Reserve System. 1. What is the purpose of the Federal Open Market Committee (FOMC)? 2. Which of the following Fed actions will increase bank lending? Select one or more answers from the choices shown. The Fed raises the discount rate from 5 percent to 6 percent. The Fed raises the reserve ratio from 10 percent to 11 percent. The Fed buys $400 million worth of Treasury bonds from commercial banks. The Fed lowers the discount rate from 4 percent to 2 percent. Note that Fed sets a discount rate that it charges to banks for short-term loans, which then contributes to the rate that the banks charge customers on their loans. While the Fed has the ability to issue Federal Reserve Notes, the paper currency used in the U.S. monetary system, they do not print the money. That task is still performed by the U.S. Mint. After the financial crisis of 2007-2008, Congress…
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume thatall banks are subject to a uniform 10 percent reserve requirement and demand deposits arethe only form of money. A commercial bank receiving a new demand deposit of $100 wouldbe able to extend new loans in the amount of: Group of answer choices $1,000. $10. $100. $90.
2. Which of the following IS NOT a task the Federal Reserve undertakes? a. Stabilizing financial markets b. Managing inflation c. Regulating the national banking system d. Protecting only producers. Give typed answer ASAP with proper explanation of the each option given.
Briefly, explain how money is created in a modern economy with fractional reserve banking?b. What are the Federal Reserve’s two main monetary policy goals? List the three traditional or conventionaltools of monetary policy – which is used most often?c. Outline how the Fed would respond to a recession in the U.S. As part of your answer show how Fed’s action,impact banks, the money market, and households and firms, ceteris paribus. Include the appropriate graph andequation.
Suppose that Mountain Star Bank discovers that its reserves will temporarily fall slightly below those legally required. How might it temporarily remedy this situation through the Federal funds market? Now assume Mountain Star finds that its reserves will be substantially and permanently deficient. What remedy is available to this bank?
a. Suppose a certain bank has $5M in capital, demand deposits totaling $40M, holds 15% reserves, and invests solely in high-risk loans. Sketch out this bank’s balance sheet.b. Now suppose that 10% of the loans completely default. What does this bank’s balance sheet look like? Hold demand deposits constant for this question.c. Finally, assume depositors, fearing insolvency, withdraw $15M from the bank. The bank can sell loans only at a 25% discount. Barring any inter-bank borrowing, does this bank remain solvent? Why or why not?
suppose the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the accompanying example.ASSETSvault cash - $20,000deposits at fed - 30,000securities - 45,000loans - 120,000LIABILITIESchecking deposits - $200,000net worth - 15,000answer the following:A. what are the required reserves of people national bank? does the bank have any excess reserves?B. what is the maximum loan that the bank could extend?C. indicate how the banks balance sheet would be altered if it extended this loan.D. suppose that the required reserves were 20 percent. if this were the case, would the bank be in a position to extend any additional loans? explain

SEE MORE QUESTIONS

Recommended textbooks for you

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

SEE MORE TEXTBOOKS

1- Which of the following are the three powers of the Federal Reserve Bank? (Indicate all that apply.) Conduct Open Market Operations Set the Discount Rate Regulate the stock and bond markets Set the Required Reserve Ratio Set the Federal Funds Overnight Rate and the Prime Rate