Q: credit rationing and partake of the federal bank
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A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which of the following statements represent a use of money that is not consistent with its…
A: Money is a commodity that is commonly acknowledged as a medium of exchange for goods and services.…
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Q: QUESTION 6 Commercial banks purchase gov't debt, which counts as assets of commercial banks.…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: As a "lender of last resort" the Fed :protects the deposits of $100,000 or less in all commercial…
A: A lender of last resort is an institution, that offers loans to commercial banks or other depository…
Q: money is a concept has a certain value at a point in time.
A: Money is the concept that money you have in present is worth more than the identical sum in the…
Q: demand for money
A: Demand for money depicts when people demand more money to fulfil their needs and wants. It depends…
Q: The central bank (CB) decided to increase the discount rate on loans it makes to commercial banks.…
A: The discount rate is the rate at which the central bank lends to commercial banks.
Q: To buy securities the Fed offers a high price and increases interest rates
A: Buying and selling of securities is done by central bank as part of open market operation.
Q: what is the purpose of the national credit act
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A: Monetary policy deals with the money supply circulation in a country.
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Q: Stephanie deposits $500,000 in Bank of America. Assuming that banks lend out everything that they…
A: Total Deposit = $500,000Required Eeserve = 14%Intrest rate = 2%
Q: As a lender/depositor, how would you compare time to demand deposits? Demand deposits are more…
A: Meaning of Demand Deposit: The term demand deposits refer to the situation under which an…
Q: The central bank (CB) decided to increase the discount rate on loans it makes to commercial banks.…
A: Answer: Discount rate: It refers to the rate of interest that the central bank charges on loans that…
Q: If in an economy bank rate is increased how will it affect the demand for credit? Explain
A: To prevent volatility, the basic goal of monetary policy is to maintain control over the money…
Q: The Fed is very concerned about the stability of financial markets. When individuals and firms are…
A: Introduction: Financial markets, in general, refer to any marketplace where securities are traded,…
Q: Suppose all banks have zero excess reserves. The Fed buys bonds for $1 million and a bond dealer…
A: Here, it is given that the amount of $1 million is deposited in a bank that the bank loans out its…
Q: Critics of federal banking policy argue that deposit insurance is a key reason for banking failures.…
A: When depositors are given confidence about their money, in case a bank fails, it is "deposit…
Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…
A: Central banks controls the money supply and maintain the inflation rate at desirable level through…
Q: The federal funds rate is an interest rate that a bank charges another bank for overnight loans. O…
A: The given statement is true i.e. The federal funds rate is an interest rate that a bank charges…
Q: When the government uses its overdraft facilities at the central bank, it the economy. This is…
A: Overdraft facility represents the financial facility that the bank provides to the account holders…
Q: Discuss how the national credit act deals with information held by the credit bureaux
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Q: The changes in bank regulations expand the availability of credit cards so people need to hold less…
A: The demand for money will fall if bank regulations make credit cards more widely available so that…
Q: Republic of Bankland has three banks in the economy. The governor of the central bank of the…
A: The total amount of money held by the public at any given moment in an economy is referred to as the…
Q: Identify whether it is true or false BANK RATE IS A QUALITATIVE METHOD OF THE CREDIT CONTROL IN THE…
A: According to the given question Option is FALSE Reason BANK RATE IS NOT AN QUALITATIVE METHOD OF THE…
Q: Question 5, When banks have a lot of money, interest rate will be low to attract borrowers. High to…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Money is "created" when a depositor gets cash from the bank's ATM a bank accepts deposits…
A: Money is the common medium of exchange which is generally accepted in the whole country and backed…
Q: If a borrower defaults on a home loan, the bank is likely to do all of the following except -- sell…
A: In finance, default is failure to meet the legal obligations of a loan
Q: “When a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed.”…
A: Bank balance sheet indicates the liabilities, assets and bank capital, of a bank. Identity of bank…
Q: Give True or False: Credit rationing is quantitative credit control measure of Central bank.
A: In the process of credit rationing the lenders are not willing to advance the additional funds to…
Q: ...... can be stopped with .... policy changes that remove the need for ..... a) seigniorage /…
A: Inflation refers to rise in the general price of the commodity which reduces the purchasing power of…
Q: A Credit Union is a bank owned by its depositors who are called members and they have something in…
A: please find the answer below.
Q: An overnight loan granted by a bank to another bank to meet the daily bank reserve required by the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The Federal Reserve system is a debt-based financial system because
A: Other Options are wrong because 2) This option also wrong 3) Federal financing allows banks to…
Q: Banks borrow money at a much higher rate from the fed then they offer you for loans. True or false
A: The banks are the commercial banks where the people would deposit money. The banks are the backbone…
Q: The fed is an independent voice for the government. True or false
A: The Federal Reserve Banks are not considered as a part of the federal government, but they exist…
Q: Unlike commercial banks, savings and loans, andmutual savings banks, credit unions did not have…
A: Despite serving the same purpose of lending and borrowing money for savings and deposit purposes,…
Q: One of the major functions of commercial banks is credit creation. Commercial banks create credit by…
A: A commercial bank is a distinctive financial institution that takes as well as depositions from the…
Q: Credit Crunch is... a) Banks lack funds so they are unable to provide credit to the public b) Banks…
A: OPTION A A situation of credit crunch arises when there is a shortage of funds with the banks which…
Q: Explain the concept of a surplus of money versus a shortage of money.
A: Money is a commodity that is used for transaction that involves the transfer of goods and services.…
Q: The changes in bank regulations expand the availability of credit cards so people need to hold less…
A: Money supply refers to the amount of money available in an economy at a particular time. The money…
Q: The interest rate that banks charge one another for the loan of excess reserves is the _____.
A: Central bank is the apex financial institution which is solely responsible for controlling the money…
Commercial banks and credit unions can create money and credit. True or False
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