Discounting refers to the Fed's practice of Multiple Choice O O O O Selling securities at the federal funds rate. Purchasing securities at the lowest available federal funds rate. Lending reserves directly to private banks. Lending at the prime rate.
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- To buy securities the Fed offers a high price and increases interest rates. True or FalseFannie Mae, Freddie Mac, and similar government-sponsored enterprises obtain their funds from Group of answer choices the U.S. Treasury. the Federal Reserve. issuing commercial paper and bonds. both the U.S. Treasury and the Federal Reserve.The Fed buys $1 million in bonds from a bond dealer. The bond dealer deposits the money in a bank account. The reserve ratio is 15%. How much can the bank lend after taking the deposit? A
- The legal reserve ratio is 0.2 Find the credit multiplierCommercial banks that go to the discount rate window to borroe funds from the Federal Reserve, may not be able to borrow funds from other bank based on the Fed Funds rate a. needs to pay a penalty rate to borrow from the Federal Reserve b. c. may need that their internal balances and accounts be serutinized by the Federal Reserve All of the above d.the advantages and disadvantages of a weak dollar bill (3 of each)
- RTFQ Consider TOBITC's Balance Sheet $2,500 Reserves $30,000 Deposits $2,500 Bonds $40,000 Loans to customers To meet their R/R, the Bank could do all of the following Except... Borrow from the Fed at the Fed Funds Rate Call in Loans Borrow from another bank (for this question you can assume there are other banks) Sell some of their BondsMoney Market Equilibrium interest rate of 3% Graph & Fill in Blanks 1st Blank options are rise or fall 2nd Blank options are $0.25 billion, $0.5 billion, $1 billion 3rd Blank options are decrease or increase 4th Blank options are $0.5 billion, $1 billion, $0.4 billion 5th Blank Options are multiplier, crowding-out, automatic stabilizer, liquidity preferenceIf the IORB rate is 4.25 percent, the effective federal funds rate is 4.18 percent, and the ON RRP rate is 4.00 percent, which group might lend money in the federal funds market? Commercial banks None of the answer options are correct. Non-bank financial companies The Federal Reserve.
- Problem 3 The current Discount Rate is 0.5%. The current Federal Funds Rate is 0.5%. The interest paid on Excess Reserves is 0.25%. Nonborrowed Reserves are $3.848tn. a) Using this information, carefully construct a channel system graph of the current market for Nonborrowed Reserves. b) What is happening to the Federal Funds Rate? c) Why do you think this is?The initial deposit are $110 million and legal reserve ratio is 12% Find the value of money multiplierIf the legal reserve ratio is 17% Calculate the value of multiplier