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

Author Question: The reserves of financial institutions: a. Are made up mainly of government securities and high ... (Read 31 times)

ss2343

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
The reserves of financial institutions:
 a. Are made up mainly of government securities and high quality corporate bonds.
  b. Are assets that financial institutions try to maximize.
  c. Are assets that financial institution's try to keep at the legal limit.
  d. None of the above is correct.
  e. Are the largest liability in a financial institution's balance sheet.

Question 2

Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
 a. The real risk-free interest rate rises, and GDP Price Index rises.
  b. The real risk-free interest rate and GDP Price Index remain the same.
  c. The real risk-free interest rate falls, and GDP Price Index falls.
  d. There is not enough information to determine what happens to these two macroeconomic variables.
  e. The real risk-free interest rate rises, and GDP Price Index falls.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

.E


ss2343

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

jackie

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

The theoretical design of nature reserves, based on the tenets of island biogeography. The theoretical design of nature reserves, based on the tenets of island biogeography.
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
The developing and emerging nations have high rates of population growth The developing and emerging nations have high rates of population growth
Commercially made peanut butter doesn’t have any detectable levels of trans fatty acids Commercially made peanut butter doesn’t have any detectable levels of trans fatty acids
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ... A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...
Video: Chemical Equilibrium between N2O4 (colorless gas) and NO2 (brown gas)

For a complete list of videos, visit our video library