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 65 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
Thanks for the timely response, appreciate it

strudel15

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

For linked genes, recombinant frequencies are less than 50 percent For linked genes, recombinant frequencies are less than 50 percent
3-13 Formation of a peptide bond by condensation 3-13 Formation of a peptide bond by condensation
Hydrogen-bond donors and acceptors in water Hydrogen-bond donors and acceptors in water
Isomerization reaction proceeds via an enediolate intermediate. Isomerization reaction proceeds via an enediolate intermediate.
Belief that premarital sex is “not wrong at all,” Canada, 1975—2016 (in percent) Belief that premarital sex is “not wrong at all,” Canada, 1975—2016 (in percent)
A mortgage loan of $132,000 at 6% compounded semiannually is to be amortized over 25 years by ... A mortgage loan of $132,000 at 6% compounded semiannually is to be amortized over 25 years by ...
Video: Smoking Cessation

For a complete list of videos, visit our video library