In reaction to the financial meltdown and severe recession, Congress passed the _____ to eliminate the ability of the banks to create the same problem in the future.

Q: Did Central Banks seem totally unprepared to deal with the pending economic fallout? Is the Central…

A: In an economy, the central bank is one of the authorities that can stabilize the market by…

Q: One of the three main tools of the Federal Reserve is fiscal policy.  True  False

A: Central Bank: The central bank is the apex bank of the country that supplies the money or maintains…

Q: The political business cycle refers to   The ups and downs in the overall business activity of…

A: Political economy is a discipline of social science that studies the interactions between people,…

Q: Which of the following about government debt is true?     it is controlled by the Federal Reserve…

A: Like most consumers, governments even have debts, which increases annually by the quantity of the…

Q: t

A: We start with the IS curve. IS curve represents the equilibrium in the goods market. That is, at…

Q: If the central bank desired to increase spending in the economy, using the instruments ofmonetary…

A: Monetary policy is used by the federal reserves also known as the central bank of an economy to…

Q: Raising Government Spending is one of the bellow options? contractionary fiscal policy expansionary…

A: Definitions- Fiscal policy- The fiscal policy is the use of government revenue (taxes or tax cut)…

Q: Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending. If the…

A: If the US Fed chooses to engage in stabilization policy it should try to increase the money supply…

Q: The government controls economic policy through the fed, though the fed is independent from the…

A: The economy involves many agents which are the producers and the consumers and the government. There…

Q: 64)In response to already low interest rates doing little to stimulate the economy in the Great…

A: In the presence of low interest rates doing a little to uplift the economy during the great…

Q: the Federal Reserve attempts to grow the money supply in a recession. How does such a stimulus…

A: It's commen policy that central bank increase money supply in an economy during recession period.

Q: By lowering the interest​ rate, the Fed makes it​ _______ costly for the banks to borrow monetary…

A: Answer: Correct option: A (​less; falls) Explanation: If the Fed lowers the interest rate then the…

Q: In the short run, a rise in the federal funds rate ________ the price level and ________ real GDP.…

A: In the short run when the federal funds rate increase so investment falls and so does output and…

Q: Supply-side economics is the school of thought that advocates the use of A monetary policy to…

A: Fiscal policy involves policy actions by federal government to reduce instabilities in prices and…

Q: PLEASE EXPLAIN IN DETAIL:   1) Public Borrowing and Crowding Out Effect. 2)Crowding Out Effect in…

A: The two schools of thoughts: Monetarist approach and Keynesian approach, are very important for the…

Q: 10.) Which of the following is not a result of expansionary OMOs?       Less investment spending.…

A: Open Market Operations(OMO) is a monetary tool used by Federal Reserves to control the money…

Q: If the federal government runs large deficits it could cause crowding out through interest rates.…

A: At the point when the economy is working close to limit, government acquiring to fund an expansion…

Q: If the government increases government spending (G) and at the same time the Fed conducts open…

A: Answer: Correct option: (c) be ambiguous Explanation: If the government increases spending then the…

Q: When the economy is in recession and the Fed wants to do expansionary policy, explain what all 4…

A: In the United States, Fed is the central bank who performed Monetary policies to deal with business…

Q: Currently, Social Security is funded by current taxes. It is projected that in 2024, current taxes…

A: Social Security benefits are funded by a dedicated payroll tax, which workers pay into as they earn…

Q: using a graph of aggregate demand and supply explain how monetary policymakers would respond to…

A: The standard objectives of monetary policy makers are to accomplish or keep up full work, to…

Q: During a recession, the government can help the economy by   a. decreasing taxes.   b. buying…

A: During a recession, the government can help the economy by decreasing taxes as it will allow public…

Q: According to the Congressional Budget Office (CBO) federal debt that is high.and risiog.as a…

A: 3. According to Congressional Budget office, federal Debt that is high and rising as a percentage of…

Q: Raising the discount rate and the Federal Funds rate is which one? contractionary fiscal policy…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The discount window provides:   Question 10 options:   loans to banks at low interest rates, so…

A: Discounting window is the central bank’s loan provision facility to the commercial banks in order to…

Q: Monetary policy is subject to longer​ ________ lags than fiscal policy. A. Decision and​…

A: The time it takes for the government and central bank to react to an adverse macroeconomic event…

Q: 18. "Liquidity trap" was a problem of a) monetary policy of Japan and Sweden. b) fiscal policy in…

A: Liquidity trap refers to the situation when a country is facing an ineffectiveness of the policy to…

Q: Which of the following policies in pro-cyclical? Select one: a. The Fed sells government bonds in an…

A: Pro-cyclical policies are the tendency of financial variables to change and fluctuate during the…

Q: The incorrect statement related to the evolution of central banks: a. There were only about a dozen…

A: Central bank started in 18th century.

Q: Which of the following about government deficits is true?       it is a flow variable   it is…

A: A deficiency happens when costs surpass income and demonstrate the monetary strength of a rural .…

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: the central bank sells government securities from the private sector-money markets, other things…

A: Introduction: When the Central bank sells government securities, then the people will purchase…

Q: 24)To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S.…

A: Answer: Correct option: option (d) Explanation: Fannie Mae and Freddie Mac are the two…

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

Q: Match each tool with the appropriate policy decrease the reserve ratio increase taxes sell bonds…

A: Expansionary fiscal policy is to decrease tax or increase spending or both 4th and 6th statement

Q: The Fed is leaning against the wind when it sets a high interest rate during a recession .

A: Lean against the wind is a kind of monetary policy where interest rates are set higher than usual…

Q: When the United States economy goes through a period of extended growth, the economy is said to be…

A: The inflation is the increase in the general price level of goods and services. Some level of…

Q: Explain how the central banks are able to reduce the level of aggregate demand in an economy by…

A: The central bank has the ability to influence aggregate demand in the market by changing the level…

Q: Suppose country A has a central bank with full credibility, and country B has a central bank with no…

A:

Q: The things that can be learned from the 1997/1998 Asian crisis are... a) Closing small banks in a…

A: The answer is - d) There is no correct answer.

Q: Of the following recessionary periods in the United States, in which was the 3month Treasury bill…

A: Answer can be provided to the first one as the second one has incomplete information. Table is…

Q: When the Fed buys bonds (or bond options) on a larger scale (than before) from private banks,…

A: Open market operations are one of the tools that the Fed uses to manage the money supply across the…

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.