The Fed can make it cheaper for banks to borrow from the___ by lowering the discount rate.  A)central bank  B)excess reserve  C)monetary base  D)New York Fed

Q: The Federal Reserve manages the amount of money in circulation by buying or selling U.S. Treasury…

A: The Federal Reserves is the central bank of the U.S. who is solely responsible for controlling the…

Q: Naked Economics: Undressing the Dismal Science Book by Charles Wheelan   Please refer to the chapter…

A: Answer: The federal reserve changes the supply of money to change the interest rate. This change in…

Q: How does the structiure of the Fed reflect a compromise between centralized (federal) power and…

A: Central Bank Consist of  The composers of the Federal Reserve Act deliberately dismissed the idea of…

Q: When the Federal Open Market Committee (FOMC) directs the Federal Reserve bank of New York to buy or…

A: Open market operation is the purchase and sale of US government securities. As central bank…

Q: If the Fed raises interest rates, it will be new projects. for firms to borrow, and they will borrow…

A: Credit is borrowed money. Many small enterprises depend on credit such as bank loans and overdrafts…

Q: The bank credit expansion that initiates the inflationary boom is caused by A. Irrational…

A: Credit expansion occurs by printing excess money as people start taking more loans.When banks reduce…

Q: What is the current reserve requirement set by the FED? What does this rate tell you about how the…

A: The reserve ratio required in the banks set by FED is 0% for transactions up to $16.3 million, 3%…

Q: 25. The Fed has in recent years set monetary policy by choosing a target for the federal funds rate,…

A: When talking about monetary policy, there are different ways to influence money supply in the market…

Q: stablishin

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

Q: If the Fed buys a U.S. government bond from a member of the public, A. the banking system has more…

A: Fed, central bank practices open market operations to buy and sell bonds to affect money supply in…

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

A: From the beginning of time, unregulated economic social orders have gone through win and-fail…

Q: If the Fed unexpectedly shifts to a more restrictive monetary policy, which of the following will…

A: A decrease in the money supply or the increment in the short-term interest rates constitutes a…

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: The Federal Reserve helps determine interest rates for the entire economy.  Answer the following…

A: Note- Since you have posted a question with multiple sub-parts, we will solve first three-sub parts…

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: QUESTION 2 Suppose that for every open-market operation in the amount of $1, money supply increases…

A: Since you have poted multiple questions as per the guidelines we can solve only one question per…

Q: If the Fed opts to employ open market operations to increase the money supply, then

A: ‘Open market operations(OMO)’ is a situation where the central bank buys or sells bonds and other…

Q: Which of the following statements regarding the Federal Reserve System (i.e. the Fed) is INCORRECT?…

A: The Reserve that tends to monitor financial system risk and tend to work for helping in ensuring the…

Q: With respect to Open Market Operations, if the Fed buys bonds from the marketplace, then they are…

A: Open market operations refer to purchase and sale of  bonds by Fed.

Q: This action by the Fed causes the money supply to by S billion. (Round your response to two decimal…

A: The formulae for the money multiplier(m) is: ∆M=∆R×1RR+ER Where  is the change in the supply of…

Q: Being aware of the Federal Reserve's monetary policy and how it can affect interest rates can impact…

A: The answer is - inflation, more

Q: When the Fed decreases the discount rate, banks are likely to their lending anc the money supply O…

A: The answer is- B) increase, increases When the fed decrease the discount rate, banks are likely to…

Q: Banks will go to central bank for loans if federal funds rate is lower than the discount rate. O…

A: The banks sometimes fall short of deposits to fulfill their withdrawal needs or other credit…

Q: The Federal Reserve was created after: O a period of very high unemployment. a series of bank runs…

A: Federal reserve was established in 1913, and has served to ensure stability of financial landscape…

Q: If the fed buys bonds, price levels will:

A: Purchase and sales of bonds by fed will cause change in its price.

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: When the Federal Reserve increase the discount rate of the Fed Fund in the US market. a. Money…

A: Monetary policy refers to the flow of money supply in the economy. It can be used in the…

Q: To increase the money supply, the Fed could Select one: a. decrease the reserve requirement. b. None…

A: The central bank majorly follows two types of policies : contractionary and expansionary. In case of…

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: For purposes of monetary policy, the Federal Reserve has targeted the interest rate known as the O…

A: Monetary policy is a policy used by the central bank of a country (like the Fed) to stabilize the…

Q: You have the assignment of making a recommendation to the Chairman of the Fed during a   period of…

A: Inflation is the situation when the general price level of commodities in the economy rises. For…

Q: What happens to the money supply if the Fed decreases the reserve requirement?     There is no…

A: Reserve requirements is the important factor to determine the money supply.

Q: The financial crisis of 2007-09 resulted in immediate action by the Fed to cut interest rates. Two…

A: Interest rates are lowered by the Fed to keep the economy away from the recession. The borrowers…

Q: In a period of deflation, the Fed would most likely A) decrease the required reserve ratio. C) All,…

A: General decline in prices of products typically related to a contraction within the supply of cash…

Q: In 2008 the Fed reduced both the discount and federal fund rates dramatically.  But bank loan volume…

A: A drop-in discount rate encourages banks to lower the rate of interest they charge on loans. Due to…

Q: Suppose the Fed announces that it is raising its target interest rate by 75 basis points, or 0.75…

A: Fed, the central bank of United States, is responsible for the growth of money supply in the economy…

Q: he monetary base rises when A. the Fed purchases securities. B. the Fed purchases securities and…

A: Answer: (A)

Q: Which of the following does the Fed use most frequently to conduct monetary policy after the…

A: The objectives of the money-related policy are to advance the greatest business, stable costs and…

Q: List three main tools available to the Fed to change money supply in the economy.   What would be…

A: The three main tools of changing the money supply in the economy by the central bank are as below:…