This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United ... (Read 151 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United States.
 
  A) first
  B) second
  C) third
  D) fourth

Question 2

Suppose the required reserve ratio is 8 and that banks hold no excess reserves and the public does not change its currency holdings. If the Fed sells 5 million worth of securities, what happens to the amount of deposits in the banking system?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

succesfull

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

The simple deposit multiplier is 1/0.08 = 12.5. The amount of deposits changes by 5 million  12.5 = -62.5 million.


james9437

  • Member
  • Posts: 568
Reply 2 on: Jun 30, 2018
:D TYSM

alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Acetylcholine receptors and the autonomic nervous system Acetylcholine receptors and the autonomic nervous system
Spina bifida. (A) Spina bifica occulta; the vertebra is not complete, but there is no protrusion of Spina bifida. (A) Spina bifica occulta; the vertebra is not complete, but there is no protrusion of
Micro Electrical Mechanical System (MEMS) microchip Micro Electrical Mechanical System (MEMS) microchip
Procedures and Diagnostic Tests Related to the Cardiovascular System Procedures and Diagnostic Tests Related to the Cardiovascular System
The Male Reproductive System The Male Reproductive System
Video: Carpal Tunnel Syndrome

For a complete list of videos, visit our video library