Veronica's income is $4,000 a month. She deposits $800 in a saving account, buys $300 worth of government securities, and leaves the rest for daily transactions. Veronica's transaction money demand is Group of answer choices $2,900. $3,200. $3,700. $5,100.
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Veronica's income is $4,000 a month. She deposits $800 in a saving account, buys $300 worth of government securities, and leaves the rest for daily transactions. Veronica's transaction money
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- Stock market becomes a little more volatile and households decide to sell their stocks and use the money to lend to corporation. As a result of this additional lending, Group of answer choices 1. Supply of bonds will increase, price of bonds will increase, and interest rate will decrease. 2. Demand for bonds will increase, price of bonds will decrease, and interest rate will decrease. 3. Supply of bonds will increase, price of bonds will increase, and interest rate will increase. 4. Demand for bonds will increase, price of bonds will decrease, and interest rate will increase. 5. Supply of bonds will increase, price of bonds will decrease, and interest rate will increase. 6. Demand for bonds will increase, price of bonds will increase, and interest rate will increase. 7. Supply of bonds will increase, price of bonds will decrease, and interest rate will decrease. 8. Demand for bonds will increase, price of bonds will increase, and interest rate will decrease.Erik wants to save more, but whenever a paycheck arrives, he ends up spending everything. One way to help him overcome this tendency would be to: a. Teach him about time inconsistency. b. Tell him that self-control problems are common . c. Have him engage in precommitments that will make it difficult for his future self to overspend.Prepare a pay-off and a regret table.
- Why is it helpful to track your spending for 2 months?a. You can receive higher interest rates for your savings account when you canshow how you spend your money.b. You can receive special discounts at certain stores when you can show howyou spend your money.c. To identify your spending patterns and then prioritize your needs, wants, andsavings goals.d. To eliminate all spending on your wantA surplus of money in the money market causes Group of answer choices a decrease in the money supply. a decrease in the quantity demanded of money. a decrease in the equilibrium interest rate. an increase in the demand for money15. Cheques, Demand Drafts are example of question 15 options: Fiat Money Fiduciary Money Credit Money Full Bodied Money
- Using a graph similar to the one in figure 1 show how, when interest rates increases, savings decreases. make sure to provide proper explanation. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Roy does not trust banks and has been keeping his earnings in coffee cans in a freezer. His friend Julia convinces him that banks are safe, and Roy finally opens a chequing account. When he deposits his money into the account that transaction will directly increase the money . FALSE TRUETrue or false question below. A bank run occurs when individuals desire to put more value into their deposits. True or false.
- A treasury manager would like to develop a funds concentration policy for her staff to use to determine when to transfer funds using a wire transfer or an ACH transfer. The pertinent information appears below. Each wire costs $25 Each ACH transfer costs $0.75 Opportunity cost of funds is 5% Earnings credit rate is 1% Reserve requirement ratio is 10% For a mid-week transfer, what is the minimum transfer balance that justifies a wire transfer?If an individual expects interest rates to increase, then He will have a larger speculative demand for money. He will concentrate his wealth in his bonds. His transactions demand for money should fall. None of the above will occur.Economi 15. The federal deposit insurance corporation (FDIC) insures individual bank accounts up to $250,000 per account. Which of the following statements regarding FDIC insurance is true? FDIC insurance a. does not eliminate the need for reserve requirements because bank runs can't be eliminated in a fractional reserve banking system b. has prevented bank runs because the FDIC pays depositors interest at the discount rate on their accounts c. eliminates the need for reserve requirements because banks are not liable for any depositor losses d. works in coordination with reserve requirements to ensure depositor confidence, preventing bank runs.
