Discuss how the central bank increase the federal funds rate ripples through the different sectors of the economy.

Q: What are the main determinants of the federal funds rate?

A: Federal funds rate is the rate at which commercial banks borrow from and lend to each other.

Q: Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the…

A: Federal funds are overnight lending among banking institutions in order to retain the central bank…

Q: What are the primary goals of a central bank ? Why it is important for the bank to attain these goal…

A: The central bank is typically in charge of monetary policy and member bank regulation in modern…

Q: Which of the following best describes the main responsibility of a central bank? * A. it acts as an…

A: The central bank is the primary monetary authority of a nation that is responsible for managing the…

Q: Explain any two important functions of central bank in an economy?

A: According to the given question  In simple words we can say that a central bank is a bank which…

Q: What is the federal funds rate?   What problems does the FED encounter when trying to control the…

A: In the United States, Fed makes monetary policy and influence the monetary system by making changes…

Q: What are the effective Central Bank Frameworks?

A: The operational frameworks of central banks influence their choices and actions. As market…

Q: What are the factors cited in this statement that determined the FOMC’s decision of changing (or…

A: 1. The rate at which depository institutions(banks) lend reserve balances with other banks on an…

Q: Why was the European Central Bank less aggressive than the U.S. Federal Reserve Bank in responding…

A: Answer- Need to find- Why was the European Central Bank less aggressive than the U.S. Federal…

Q: When a central bank sells government bonds to a certain bank in the Monetarist view, the asset side…

A: In an economy, if Central Bank sells government bonds, it tries to decrease money supply in the…

Q: stablishin

A: The Federal Reserve System is the United States of America's central system of banking.It was being…

Q: The federal funds rate is the interest rate that banks charge one another for short-term (typically…

A: Open-market operations are used to increase or decrease the money supply in the economy or in the…

Q: What is one of the advantages of monetary policy over fiscal policy? 1) its control over the size of…

A: Monetary policy is implemented by the central bank of a country in which the bank increase or…

Q: discuss how money supply is determine by the central bank and economics activities

A: Money : Money is something which is used to make transactions and which earns no interest. This…

Q: Suppose the and the output gap is 1 percent. Using the Taylor rule, what is the federal funds rate?…

A: The federal funds rate is the target interest rate set by the Fed at which commercial banks borrow…

Q: eassy in 250 words. What is the role of the Central Bank? How does central bank regulate monetary…

A: A central bank is a government agency that manages banks, implements monetary policy, and offers…

Q: Use an aggregate supply and demand diagram to dem

A: Recession refers to a significant decline in the general level of economic activity being in a…

Q: Discuss the three (3) traditional monetary policy tools that the Federal Open Market Committee…

A: Federal Open Market Committee (FOMC) of the Federal Reserve has the primary responsibility of…

Q: When the Federal Reserve lowers the discount rate, this indicates they are pursuing --------- a)…

A: Any policy employed by Federal reserve would be classified as monetary policy which could be either…

Q: O is an agency of the executive branch of the Federal government. O has the same status as the…

A: A national bank, save bank, or monetary authority is a foundation that deals with the money and…

Q: What are the characteristics of the Central Bank.

A: Central Bank is an apex institute under which all the commercial banks are registered. Central Bank…

Q: Explain the answer and/or show any calculation to prove the answer. What is the mission of a…

A: The banking sector is an industry and a sector of the economy dedicated to holding and investing…

Q: Explain the factors on which an independent central bank can have positive impact and the factors on…

A: The central bank is the sole authority and major financial institution of the economy that indulges…

Q: Contrast the actions a central bank would take to increase the quantity of money in the economy with…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: An expansionary policy aims at increasing the money supply, which of the following is an example of…

A: The expansionary policy is used to increase money supply where the Fed can do the following: 1.…

Q: Describe how an expansive open market operation is conducted by a central bank

A: In open market operations. the Central Bank purchases or sells the securities in the open market in…

Q: Explain three tools of monetary policy from central bank and how these tools increase and decrease…

A: Three tools of monetary policy from central bank are:- 1) Open market operations:- This is tool of…

Q: Monetary policy actions by the Fed are

A:

Q: Explain how the central bank can pursue contractionary policy through open market operations.

A: Contractionary monetary policy is done in order to reduce the aggregate demand, decrease output, and…

Q: Which action taken by a central bank would reflect expansionary monetary policy? A. Selling treasury…

A: Expansionary monetary policy results in increase in money supply which leads to increase in output…

Q: Explain the main theories of central bank behaviour.

A: Main theories of central bank behavior 1)Monetary stability For monetary stability,central bank may…

Q: Critically analyze and discuss the likely impact of tightening the monetary policy rate on…

A: Monetary policy is the policy of central bank which influences the economic growth through the…

Q: How might each of the following factors complicate the implementation of monetary policy: long and…

A: Monetary policy is the policy that is taken by the central bank of the nation in order to control…

Q: Explain the type of policies a central bank can implement to raise the interest rate

A: The goal of the monetary policy of the central bank is to control the amount of money in the…

Q: The Taylor Rule helps a central bank set its federal funds rate based on divergence of actual (i)…

A: The central bank of an economy is responsible for maintaining price stability and maximum…

Q: Suppose the Fed wants to increase the money supply. Which open market operation will achieve this…

A: Fed uses expansionary monetary policy to increase money supply in the economy.

Q: The monetary base is the sum of currency in circulation and bank reserves   True or False?…

A: The central bank of a nation controls the reserve ratio and interest rates which affect the lending…

Q: Which of the following policies did the Fed follow after 2014? To unwind expansionary policy…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Do you think the central bank should conduct policy using rules or discretion? Explain.

A: Central bank is the apex bank of any country which performs promotional  and regulatory function for…

Q: What limits the Bank of Canada’s ability to steer the economy to avoid both recession and inflation?

A: The flexible exchange rate and inflation control objective are the two primary foundations of…

Q: What are the reasons why the Central Bank is the “lender of last resort?”

A: Lender of last resort means that, in systematic and logical sense, an individual who loans the money…