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True or false question below.
A bank run occurs when individuals desire to put more value into their deposits. True or false.
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- As the interest rates decline, the amount of money the public holds rise. True or FalseDuring financial crisis, BSP buys bonds in the commercial banks to increase money supply. True False When the rediscount rate rises, this gives more opportunity for the commercial banks or universal banks to borrow money from the BSP. True FalseHouseholds can only be considered as suppliers of funds in the financial market. *a. Trueb. FalseHigh reserve requirement encourages bank to lend money by forcing them to hold more cash. *a. Trueb. FalseAs the interest rate increases, the opportunity cost of holding money decreases as well. *a. Trueb. False
- In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending. These "extraordinary measures" have been somewhat controversial (at least among American politicians). Identify some of the effects of these efforts and/or some of their potential future impacts ?When the Central Bank increases the money supply, interest rates fall and consumers spend more. Select one: True FalseA decrease in money demand is likely to: Multiple Choice increase interest rates. decrease money supply. decrease Real GDP. increase nominal output.
- Commercial banks increase their reserves after the Fed increases the interest rate it pays on reserves. Which of the columns above could represent this action?The chairman of the Federal Reserve Board can accelerate economic activity by lowering interest rates. What primary method does the Federal Reserve use to accomplish this? Group of answer choices Selling margin requirements Buying Treasury securities Increasing the discount rate Increasing reserve requirementsThe federal funds rate is the interest rate that the Fed charges banks for its loans to them Group of answer choices True False. Type out the correct answer ASAP with proper explanation of it.