What is Central Bank Independence(CBI)? What is the difference between political and operational independence?

Q: Helicopter Money​ Primer: The possible next frontier in quantitative easing      Central banks—the…

A: Answer: (1). C. the required reserve​ ratio, discount​ rate, and open market operations Explanation:…

Q: 8. (3.9) Auditing the Fed? In recent years, several members of Congress have sponsored bills that…

A: One of the most critical functions of the United States Congress is oversight. Congressional…

Q: 2.6 The hypothetical information in the table below shows what the values for real GDP and the price…

A: If the Fed wants to keep real GDP at its potential level in 2019, it should use contractionary…

Q: 8. According to your text , central bank transparency O. is a political necessity that interferes…

A: The Central Bank is the highest financial institutions of an economy, which acts as the banker's…

Q: 2. i) Describe briefly the tools the central bank uses to control the money supply in the economy.…

A: The money supply is the supply of currency which are supplied into the economy by the central bank…

Q: 12. Which monetary policy tool did the US Federal Reserve introduce most recently? a. Required…

A: Federal Reserve is central bank of USA. It is apex monetary institution in country. It has been…

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A: Fiscal policy refers to the method of government spending and tax policies to take control over the…

Q: Suppose real GDP is forecasted to grow by 2.482.48%, the velocity of money has been stable, and the…

A: According to the quantity theory of money: Where M is the money supply, V is the velocity of money,…

Q: What are the three monetary policy tools that Fed has at its disposal?

A: Monetary policy refers to the central bank’s policy that brings changes in the supply of money by…

Q: The following are some of the key functions of the Federal Reserve System, EXCEPT: O Implement…

A: The federal reserve system controls the inflation in the country by implementing the monetary policy…

Q: List the names of the current chairperson of the Federal Reserve and members of the Board of…

A: Since there are multiple questions posted here, the first one only will be answered in this session.…

Q: 16. In answering the question, you should emphasize the line of reasoning that generated your…

A: a. I. To lower the federal funds rate the Federal Reserve System must raise the cash supply. this…

Q: The Central banks' tools to control the money supply include the discount rate, and interest…

A: If the money supply has to be decreased Central bank would increase discount or interest rate as…

Q: 5. The Federal Reserve's organization While all members of the Federal Reserve Board of Governors…

A: Open Market operation is the buying and selling of stocks and bonds in the financial market to…

Q: Explain the answer and/or show any calculation to prove the answer. What is the mission of a…

A: The banking sector is an industry and a sector of the economy dedicated to holding and investing…

Q: 12. Which monetary policy tool did the US Federal Reserve introduce most recently? a. Required…

A: Monetary policy is a kind of economic policy that regulates the amount and rate at which an…

Q: Which of the following is not a function of the Fed? 1) Setting reserve requirements for banks. 2)…

A: * ANSWER :-  * The OPTION 2  ( advising Congress on fiscal policy) is correct answer.

Q: What factors have led to the dominance of the banks? Prove explanations in detail with an example

A: Banks are the authorities that enable flow of money by lending and depositing money of the people.

Q: 2. When a central bank wants to pursue a contractionary monetary policy​, it should   a.…

A: Answer - Dear student Thank you for submitting your question .Since we answer one question  at a…

Q: Describe two concepts of central bank independence. Is the Fed politically independent? Why do…

A: Goal independence and instrument independence are two types of central bank independence. In case of…

Q: Over the last 10 years the Federal Reserve has substantially changed the way it operates. What is…

A: Fed The Federal Reserve System (FRS), sometimes known as the Fed, is the United States' central bank…

Q: What are the three instruments of monetary control? Explain. Why does the Federal Reserve prefer to…

A: Three instruments of monetary control are: Open market operations: OMO involves selling and buying…

Q: 1. Subject to the approval of the board of Governors, the decision of choosing the president of a…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The _____ oversee(s) the main tool of monetary policy.   a. Congressional Budget Office   b. 12…

A: * ANSWER :-  (4) From above information the answer is provided below as

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: 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 advantages or disadvantages of having an independent Fed, one which doesn’t take direct…

A: Many people are startled to hear that the Federal Reserve, the US central bank, operates mainly…

Q: 27) Which of the following is not a function of the Federal Reserve System, or the "Fed"? A) acting…

A: Lender of last resort is the institution that acts as a final provider of liquidity to other…

Q: Suppose that the government increases its spending. What monetary policy should the Fed adopt…

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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: 8 Using a suitable diagram, discuss why Monetarists proposed that an expansionary monetary policy…

A: Monetarists believe that monetary policy is more effective relative to the fiscal policy. The…

Q: 1.7 According to the quantity theory of money, if the money supply is growing at a rate of 5…

A: According to quantity theory of money MV = PY M is Money Supply V is Velocity P is Real GDP Y is…

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:…

Q: 14. Which of the following is the main goal of contractionary monetary policy? a. An increase in…

A: The Central Bank of a country implements a contractionary monetary policy. For this, it can increase…

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.