How has the balance sheet of the Fed changed over the years? Explain why

Q: Suppose you have a Canadian quarter in your pocket. How is this money counted in the Fed balance…

A: Balance sheet refers to the financial statement which is reporting the assets, liabilities and…

Q: What was Ben Bernanke (Federal reserve current chairman) philosophy in regard to how to deal with…

A: Philosophy of Ben Bernanke As the chairman,  Ben Bernanke took an aggressive and experimental…

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: Does south china sea issue with respect to taiwan and other countries will make the world markets to…

A: Disputes in the South China Sea (SCS) are escalating as a result of China's continuing military…

Q: What did the Fed do in 2007 to deal with the underutilization) of the discount rate window

A: The 2007 financial crisis began in earlier years with economical credit and lending of tax standards…

Q: What would likely result of the Feds buying bonds be on both

A: The federal reserve operates the monetary policy. It affects the Money supply by buying and selling…

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: Designers of the Federal Reserve System were concerned that the Fed might form policy favorable to…

A: The Federal Reserve System is the US government's central banking authority. It serves as the US…

Q: does the Fed regulate money to influence the interest rates?

A: Federal Reserve is the central bank of United States. It is the apex bank and the regulator of…

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: Outline to the policy choices for contractionary and expansionary   options of the Fed.

A:

Q: When the Fed buys bonds in open-market operations, it increases the money supply. If the Fed wants…

A: Note : Since you have uploaded multiple questions at a time , the first three shall be answered…

Q: Why is there a lag between the Fed’s actions and the economy’s response?

A: In the behaviour of the Fed and the response of the economy, there is a time lag. The point of touch…

Q: If the Fed is buying bonds, then it wants bond prices to _____ and the federal funds rate to _____.

A: Federal funds rate is the target interest rate set by the Federal Open Market Committee  at which…

Q: The Fed has an obligation of the "full employment mandate". What is that exactly? How is it…

A: The Federal Reserve in the U.S was created on 23rd December 1913. It is the central bank of the U.S.…

Q: What is the Fed’s monetary policy instrument and What are the main influence on the FOMC

A: Monetary policy is the use of certain instruments or tools by Fed in order to influence the supply…

Q: How changes in the tools of monetary policy affect the Federal Funds Rate? Do not draw the graphics,…

A: Monetary tools and Federal fund rate: Answer: Required reserve ration is a monetary policy tool it…

Q: Fill in the blanks The tools that the Fed uses to influence the economy are  (blank) , (blank)  ,…

A: The following problem has been answered as follows:

Q: Right now, the USA is facing inflation. Which of the following would we LEAST likely see as a…

A: In the United States, if there is a high inflation, it explains the expansionary situation in the…

Q: If the Fed wants to increase the money supply by $100 million does it have to buy more than $100…

A: The economies tend to have two major policy makers, the government, and the central banking system.…

Q: 25. Show in a graph how the Fed essentially chooses a monetary rule that creates a flat effective…

A: The Fed's role has evolved, and it now primarily manages the growth of bank reserves and the money…

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: Describe the Federal Reserve's monetary policy instruments and how they are used.

A: Various monetary policy instruments of Fed are 1. Required reserve ratio 2. Discount rate 3. Open…

Q: Explain the structure and ownership of the Federal Reserve. What are its roles?  How is it managed?…

A: Hey, Thank you for the question. As per our honor, code we can answer only first three sub-parts of…

Q: What are the goals of monetary policy? How have the goals changed since August 2020? Describe how…

A: The monetary arrangement is a bunch of apparatuses that a nation's central bank has access to…

Q: Why does the Fed manipulate the money supply ?

A: Answer: Introduction: Fed is the central bank of America. It is responsible for controlling…

Q: What’s the monetary policy? Why the Fed implements the monetary policy?

A: What’s the monetary policy? Answer: Monetary policy is a tool to improve the economic situation…

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: If the Fed buys $5 million of bonds from the First National Bank, what happens to reserves and the…

A: The Fed buys bonds from the First National Bank increases reserves by $5 million and reduces…

Q: Comment on the Fed's current monetary policy based on Powell's testimony.

A: The monetary policy is policy which is adopted by the monetary authority (central bank of the…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.