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

Author Question: The reserve ratio is 10 percent and all loan proceeds are deposited in transactions accounts. A bond ... (Read 57 times)

naturalchemist

  • Hero Member
  • *****
  • Posts: 542
on: Jun 30, 2018
The reserve ratio is 10 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has 100 million in deposits, 8 million in vault cash, and 7 million in deposits at the Fed.
 
  The Fed sells 1 million in securities to the bond dealer. As a result, of this transaction alone
  A) the money supply falls by 1 million and total reserves rise by 1 million.
  B) the money supply falls by 1 million and total reserves fall by 1 million.
  C) the money supply rises by 1 million, total reserves fall by 900,000.
  D) the money supply rises by 1 million, but reserves do not change.

Question 2

The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D1?
 
  A) a requirement that all students at universities have an iPod
  B) a decrease in the price of Zunes, a substitute for iPods
  C) a decrease in the price of iPods
  D) an increase in the price of iPods
  E) an increase in people's incomes


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ynlevi

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


naturalchemist

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

ASDFGJLO

  • Member
  • Posts: 335
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

A double bond between two oxygen atoms A double bond between two oxygen atoms
Tropical grassland of the Masai Mara Game Reserve in Kenya Tropical grassland of the Masai Mara Game Reserve in Kenya
One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ... One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ...
Carbon dioxide. This molecule exhibits a nonpolar bond and results in a linear and symmetrical ... Carbon dioxide. This molecule exhibits a nonpolar bond and results in a linear and symmetrical ...
How to solve any percent efficiency problem How to solve any percent efficiency problem
Percent of Selected Foods and Beverages Consumed in the United States Percent of Selected Foods and Beverages Consumed in the United States
Video: Double Vacuum Process (Illustration No Audio)

For a complete list of videos, visit our video library