Suppose the reserve requirement for the United States is 20%.


Instructions: Round your answers to the nearest whole number.


a. Suppose the Federal Reserve wants to increase the money supply. What should it do to accomplish this goal?

The Fed could make an open market purchase of $20 billion, resulting in a total increase in the money supply of $ ____ billion.


b. Now suppose the Fed wants to decrease the money supply. What should it do to accomplish this goal?

The Fed could make an open market sale of $30 billion, resulting in a total decrease in the money supply of $ ____ billion

Answers

Answer 1

If the Fed wants to increase money supply, it should make an open market purchase of $20 billion which would increase money supply by $100 billion.

If the Fed wants to decrease the money supply, then an open market sale of $30 billion would decrease money supply by $150 billion.

What should the Fed do to increase money supply?

They can engage in an open market purchase of government securities which would lead to more dollars entering the market.

The increase in money supply is:

= Amount of purchase / Reserve requirement

= 20 billion / 0.2

= $100 billion

What should the Fed do to decrease money supply?

An open market sale of government securities would take money out of the economy and reduce money supply by:

= Amount of sale / Reserve requirement

= 30 billion / 0.2

= $150 billion

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Related Questions

Help on this question please

Answers

Hello!

The answer is:
-A credit card can be used to pay for services, and the user agrees to pay these charges at a later time.

I hope this helped you!

The legal capital per share of stock that is assigned when the corporation is first established is referred to as.

Answers

Answer:

par value

Explanation:

Consider this scenario. during the early 2000s, the midwestern united states experienced a drought, or lack of rainfall. this ruined large amounts of the corn crop. tortillas, which are made from corn, became more expensive to make. what would tortilla manufacturers have needed to do in order to make the same profit? increase the price of tortillas decrease the price of tortillas decrease the supply of tortillas and keep the price the same decrease the supply of tortillas and decrease the price

Answers

Increasing the price of tortillas results in increased profit for the manufacturers.

What exactly is profit?

Profit is defined as a monetary gain that can be calculated by subtracting the purchase price from the selling price.

Increasing the price of the tortilla means increasing the gain or profit. This is due to the fact that the above product will cost more money to purchase.

Therefore, option a describes the statement.

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Answer:

a. increase the price of tortiallas

Explanation:

edge 22

_________________ should be used when you want to reinforce the importance and significance of your arguments, especially when you are not an expert on your topic. be sure to stress the competence and lack of bias of your sources, and emphasize their recent nature. a. examples b. narrations c. testimonies d. statistics

Answers

Testimonies should be employed when reinforcing the importance and significance of arguments when you are not an expert on the topic.

What is the significance of arguments?

Argument teaches us how to define our opinions, and thoughts and explain them clearly, as well as how to respectfully and critically analyze the perspectives of others.

The goal of an argument is to influence people's minds or convince them to do a certain action or behave in a certain way.

Now, when dealing with a topic that we have little understanding concerning the topic, we make use of testimonies to serve as the basis of evidence.

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Answer:  The correct answer is c. testimonies

Explanation:  Confirmed correct.

can someone please help me i will mark the first person that gives me the help i am looking for the brainlyest

Answers

Answer:

you should have made the screen shot small so that they cant see your name

Explanation:

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Think about financial transactions between us citizens and canadians during the period shown. canadian money had the strongest buying power in . us money had the strongest buying power in .

Answers

Answer:

1.) October 2.)March

Explanation:

did it

Canadian money had the strongest buying power in "October". Canadian money had the strongest buying power in "March"

What are financial transactions?

An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction. Each transaction includes a shift in the financial situation of two or more entities, whether they be people or corporations.

On Wednesday, when the U.S. currency fell due to somewhat more dovish-than-expected language in the Federal Reserve's policy statement, the Canadian dollar rose to its highest level in more than 2 years compared to the United States dollar.

Therefore, In "October," the Canadian currency had the highest purchasing power. In "March," Canadian currency had the highest purchasing power.

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______________is the exercise of individual judgement, instead of formal rules, in making decisions.

Answers

Answer:

discretion

Explanation:

The exchange rate of the Guatemalan quetzal to the U.S. dollar is 10 quetzal per dollar. If the exchange rate changes to 5 quetzal per dollar, what happened to the value of the quetzal and what happens to Guatemala's exports

Answers

In this situation, we can say that the Guatemalan quetzal appreciated against the U.S. dollars from 10 to 5, and its exports will decrease.

What is an exchange rate?

An exchange rate is the value of a country's currency against another trading country.

The exchange rate forms the basis for trading and conducting other business exchanges between one country and another.

The exchange rate shows the purchasing power or value of a currency vis-a-vis another country's currency.

Thus, we can conclude that the Guatemalan quetzal appreciated against the U.S. dollars from 10 to 5, and its exports will decrease.

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After three years, how much of the principal has been paid off? a. $25,176.60 b. $22,706.64 c. $19,827.08 d. $5,349.52

Answers

After three years ended, the amount of the principal that has been paid off is: c. $19,827.08.

Principal amount

Using this formula

Principal amount paid=Loan amount-Outstanding balance at 36 months

Let plug in the formula

Principal amount paid=$27,800.00 - $7972.92

Principal amount paid=$19,827.08

Therefore  the amount of the principal that has been paid off is: c. $19,827.08.

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Quincy listed his assets and liabilities. cash rent stocks jewelry student loan utilities which are quincy’s assets? select three choices. cash rent stocks jewelry student loan

Answers

The three choices that are declared as Quincy's assets are cash, stocks, and jewelry.

What are assets?

Assets are items or properties that you own, and that is valuable to you. Liabilities are things that you have to pay for as a result of you using something.

So, having that in mind, Quincy's liabilities are rent, student loans, and utilities, whereas his assets are cash, stocks, and jewelry.

He gets cash when he finishes his work, he gets money from stocks, and he has the jewelry that he either bought or got as a gift that he can sell for money.

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Answer:

Quincy's assets are cash, jewelry, and stocks as they are the properties that she can sell when she is in need of funds while student loan and utilities are her liabilities.

What are Assets?

The monetary resources that provide benefits in the upcoming years are called Assets. It can be acquired for a shorter term, known as current assets, or for a longer term known as non-current assets.

Analysis of assets and liabilities as follows:

Cash is a current asset that is used to acquire all the fixed assets.Jewelry and stocks are assets that can be exchanged for cash by disposing of them.A student loan is a non-current liability as it has to be paid by her after a period of more than a year.Utilities are a current liability as it has to be reimbursed by her within a period of one year.

Therefore, the cash, stocks, and jewelry are considered to be the assets of Quincy out of the provided assets and liabilities,

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Why are so many social policies delivered via complicated, indirect pathways, such as delivering benefits through the tax code

Answers

These social policies are delivered through these ways in order gto ensure that the recipients are people that contribute their quota to the society.

What is the tax code?

This is a general document that provides the rules on the guidelines and the rules that people and businesses have to follow to ensure they pay their taxes adequately.

It governs taxation in a given jusrisdiction. Those that pay their taxes are the people that are meant to benefit from government programs.

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The ____ phase in the business cycle is a period when the level of business activity declines and gdp falls.

Answers

The trough phase in the business cycle is a period when the level of business activity declines and gdp falls.

Trough

The trough is the fourth phase of the business cycle. The declining GDP begins to decrease its rate of negative change, eventually turning positive again. The economy begins a transition from the contraction phase to the expansion phase.

Therefore, the phase in the business cycle wherein the level of business activity declines and GDP falls is trough.

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Trish is trying to shift her company in a profound way to increase its efficiency and effectiveness. This is called organizational ______.

Answers

Organizational change is the act of shifting her company in a profound way to increase its efficiency and effectiveness.

Why is organizational change necessary?

This act of organizational change is very necessary because it gives companies the opportunity to succeed and also grow.

It would help the workers in the business to commit to the shift and adopt newer methods.

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According to the lesson, texas ranks _____ highest in the country for unemployment rate.

Answers

Answer:

The answer should be 9th

Explanation:

texas ranks 9th highest in the country for unemployment rate.

If the reserve ratio is 4 percent, then the money multiplier is.

Answers

If the reserve ratio is 4 percent then the money multiplier will be 0.25 or 25% by applying the formula 1 divided by the required reserve ratio.

What do you mean by money multiplier?

The money multiplier refers to the ratio of commercial bank money to central bank money.

In other words, it refers to the maximum amount of commercial bank money that can be created by central bank money.

It is calculated by dividing 1 by the reserve ratio. So when 1 is divided by 4 percent, it will give 0.25 or 25%.

Therefore, the money multiplier is 0.25 or 25%.

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The two potential ways to make money as a stockholder are through _______ and capital appreciation.

Answers

Dividends and capital appreciation are the two potential avenues for a stockholder to profit. As a result, the dividend is one of the possible methods.

What are the two ways to make money as a stockholder?

When you sell an investment at a higher price than when you bought it, you earn a capital gain. When an investment is sold for a profit, the investor realizes a capital gain.

Dividends, on the other hand, are assets distributed to stockholders from a company's profits. Dividends have a lower tax burden than capital gains since they are often low in income. In the long run, this means dividends are a better tax choice.

Taxes on capital gains vary depending on whether your investment is short or long term.

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Even as a new employee, Dewayne was not content to be just one of the workers. His boss noticed that he often coached his coworkers about ways to improve their work, even when it wasn't his job. Dewayne probably has a

Answers

Given that Dewayne would want to coach his fellows and was not ok with being just a worker, it can be said that he probably has a high need for power.

Why would Dewayne have a need for power?

This is due to the fact that he may belong to the class of people that are not okay with receiving instructions.

These people often time would prefer to be the ones that are at the helm of affairs, giving instructions to others.

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The __________ proposed that all impediments to the formation of a single market (the EC) be eliminated by December 31, 1992, resulting in the Single European Act.

Answers

The Delors commission proposed that all impediments to the formation of a single market (the EC) be eliminated by December 31, 1992, resulting in the Single European Act.

What is Delors Commission?

Delors Commission was an admistration by Delors, he was the eight president of the Europeans.

He was the one who set the single market and also established the community of the Europeans the act was commissioned in 1967.

Therefore, The Delors commission proposed that all impediments to the formation of a single market (the EC) be eliminated by December 31, 1992, resulting in the Single European Act.

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Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. which of these practical questions should she ask herself to assess the risk? select three options. will the warranty cover the cost of any physical damage? should i buy a different model? would it be better for me to buy a desktop computer? is the cost of replacement less than the cost of the warranty? is the laptop worth the extra expense of the warranty?

Answers

While purchasing the extending warranty for her new laptop, she is required to figure out some questions in order to identify the risk and return. The three questions can be :

a) Will the warranty cover the cost of physical damage?

b) Is the replacement cost lower than the warranty cost?

c) is the laptop worth the extra expense of the warranty?

What is the warranty?

Warranty is the guarantee raised by the vendor to the purchaser regarding the replacement or repairing of any acquired item within the allocated period of time. The general term of warranty is 1 year but it can exceed more than a year depending on the manufacturer.

Analysis of the questions is as follows:

a) Will the warranty cover the cost of physical damage?

As there are varied kinds of warranties associated with every product bought, so it is required to be known by her what type of damages are covered in the warranty which she is going to purchase.

b) Is the replacement cost lower than the warranty cost?

The cost of replacement can be greater than the cost of warranty so she vigilantly checked the prices of both as she needs to get the laptop replaced sometime in the future.

c) Is the laptop worth the extra expense of the warranty?

There are varied kinds of warranties and extra costs attached to the product which helps her in analyzing its quality.

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Answer:

A D E

Explanation:

got it wrong so you don't have to

A _____ system produces finished-goods inventory in advance of customer demand using a forecast of sales.

Answers

A push system produces finished-goods inventory in advance of customer demand using a forecast of sales.

What is a push system?

Push systems is a system whereby the business orders products with the aim of selling.

Therere, in push system, business pushes its existing stock on the consumers so as to make gains.

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If bank reserves are equal to $2,000, the required reserve ratio is 10 percent, and banks make as many loans as they can, what will be the upper limit of the money supply assuming no borrower withdraws currency and leaves the loan balance in the bank after a loan is created

Answers

The upper limit on the money supply assuming borrower withdraws currency and leaves the loan balance in the bank after a loan is created is $200,000.

What is the upper limit on the money supply?

The first step is to determine the total amount of deposits in the banks.

Deposits = resereves / reserve ratio

2000 / 0.1 = $20,000

Upper limit on money supply = deposits / reserve ratio

20,000 / 0.1 = $200,000

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You are asked to give a presentation for a local university business class. What should you focus on first when preparing for your oral presentation

Answers

When giving an oral presentation, the focus of the presentation should be on:

What you are saying (Verbal)How you are saying it (Vocal); andEverything the audience can see about you. (Visual)

What is an oral presentation?

An oral presentation is a speech being delivered in person to an audience verbally and in person.

As indicated above, the key components of the oral presentation are:

The verbal elementsThe Vocal elements; and the Visual Elements.

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In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.

Answers

Horizontal marketing is when two or more companies at the same channel level join together to develop a new marketing opportunity.

What is horizontal marketing?

Horizontal marketing system refers to the act where two or more companies unrelated to one another standing at the same level come together .

It is to be noted that horizontal marketing lay emphasis on increasing exposure and demand within a broader and more diverse market view.

Hence, horizontal marketing is when two or more companies at the same channel level join together to develop a new marketing opportunity.

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The financial statement that is most likely to be used to determine if a business is able to meet its short-term obligations within the next month would be.

Answers

The financial statement most likely to be used to determine if a business can meet its short-term obligations within the next month is the "Statement of Cash Flows."

This statement provides a detailed account of a company's cash inflows and outflows, including operating, investing, and financing activities. By analyzing cash flow patterns, stakeholders can assess the company's ability to generate sufficient cash to pay off its short-term liabilities due within the next month.

Additionally, it helps identify potential liquidity issues and allows for proactive measures to ensure the business can meet its immediate financial obligations.

The financial statement most likely to be used to determine if a business can meet its short-term obligations within the next month is the "Statement of Cash Flows."

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When an employee checks the company intranet for other job opportunities with their current employer this is an example of ___________.

Answers

When an employee checks the company intranet for other job opportunities with their current employer this is an example of an internal job-posting system.

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A lender estimates that the closing costs on a $293,600 home loan will be $11,010. the actual closing costs were 3.25% of the loan amount. determine if the closing costs were higher or lower than the estimate and by what percent? a. higher by 0.25% b. higher by 0.5% c. lower by 0.25% d. lower by 0.5%

Answers

The closing cost of the house mortgage is lower than the envisioned by 0.5%.

What is the closing cost?

Closing expenses are the prices over and above the property's rate that consumers and dealers generally incur to finish an actual property transaction.

Those expenses may also encompass mortgage origination fees, cut price points, appraisal fees, name searches, name insurance, surveys, taxes, deed recording fees, and credit score file charges.

The lender is required by regulation to expose those expenses in the form of a mortgage estimate within 3 days of a domestic mortgage application.

Gifts of equity (actual property income given to a relative or close pal at a below-marketplace rate) can also incur a few closing cost.

So, from the above announcement, it's clear that alternative D, decreasing by 0.5%, is an appropriate answer.

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Which term describes a form of informal training in which an experienced employee guides the work of a new employee?.

Answers

Mentoring is a form of informal training in which an experienced employee guides the work of a new employee.

What is Mentoring?

Mentoring is a form of relationship that exist between two people with the aim of passing across professional and personal experience.

Therefore, "mentor" who is the one passing the experience is usually the one that shares knowledge and experience.

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Which area is particularly challenging when recruiting workers for small businesses?.

Answers

The area that is particularly challenging when recruiting workers for small businesses is compensation.

What is compensation?

It should be noted that compensation simply means how much they workers will be paid as how to motivate them.

In this case, the area that is particularly challenging when recruiting workers for small businesses is compensation.

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f a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will a. more than triple. b. exactly triple. c. be reduced by one third. d. less than triple.

Answers

If firm in a perfectly competitive market triples the quantity of output sold, then total revenue will exactly triple.

What Is Perfect Competition?

Perfect competition do take place in a market as a result of a situation when all companies sell identical products and un this case, market share does not influence price.

Therefore, in this market, quantity of output sold and total revenue will be the same.

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Which statement or statements accurately describe characteristics of subsidized stafford loan? i. grace period during which payments are not due ii. based on student need iii. student is responsible for all interest for the lifetime of the loan. a. i only b. ii only c. i and ii d. i and iii

Answers

The statements that describe the feature of the Stafford Loan is that the loan is totally based upon the needs of the students and the payment Payments are not payable during the grace period.

Option C is correct.

What is Stafford Loan?

A Stafford Loan was a student loan provided by the United States Department of Education to qualifying enrolled students in registered American institutions of higher education.

This type of loan is totally depending upon the needs of the students, as many students are available for demanding the education loan for the different courses.

The main feature of this type of loan is that, the Payments are not payable during the grace period, as the students can repay the loan amount after their education.

Therefore, option C is correct.

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