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

Author Question: The interest rate in the federal funds market: a. is determined by the imposition of price controls ... (Read 14 times)

karlynnae

  • Hero Member
  • *****
  • Posts: 599
on: Jun 30, 2018
The interest rate in the federal funds market:
 a. is determined by the imposition of price controls imposed by the Fed.
  b. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves.
  c. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks.
  d. is an interest rate that is largely unaffected by the policies of the Fed.

Question 2

The federal funds market is the market where:
 a. the federal government raises funds to cover its budget deficit.
  b. the Federal Reserve System makes loans to commercial banks.
  c. commercial banks with excess reserves make loans to commercial banks seeking reserves.
  d. commercial banks make loans to the Federal Reserve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ankilker

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


karlynnae

  • Member
  • Posts: 599
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

TheDev123

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
The tertiary of a transfer RNA as determined by X-Ray diffraction The tertiary of a transfer RNA as determined by X-Ray diffraction
Environment of tRNAs at the ribosome as determined by cross-linking Environment of tRNAs at the ribosome as determined by cross-linking
Growing Interest in Sugar-Free Foods and Beverages Growing Interest in Sugar-Free Foods and Beverages
Saving Rate by Decile of Income per Capita Saving Rate by Decile of Income per Capita
Rate order question Rate order question
Video: Introduction to Human Immunodeficiency Virus (HIV)

For a complete list of videos, visit our video library