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

Author Question: A balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets ... (Read 95 times)

yoooooman

  • Hero Member
  • *****
  • Posts: 557
on: Jun 30, 2018
A balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets Liabilities Foreign assets 1,000 Deposits held by private banks 500 Domestic assets 1,500 Currency in circulation 2,000 Please write the
 
  new balance sheet if the bank sells 100 worth of foreign bonds for domestic currency.

Question 2

Which of the following statements is the MOST accurate? In general, under the monetary approach to the exchange rate
 
  A) the interest rate is not independent of the money supply growth rate in the short run.
  B) the interest rate is independent of the money supply growth rate in the long run.
  C) the interest rate is not independent of the money supply growth rate in the long run, but independent in the short run.
  D) the interest rate is not independent of the money supply growth rate in the long run.
  E) the interest rate is a factor of the money supply growth rate only in the short term.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

Central Bank Balance Sheet
Assets Liabilities
Foreign assets 900 Deposits held by private banks 500
Domestic assets 1,500 Currency in circulation 1,900

Answer to Question 2

D


yoooooman

  • Member
  • Posts: 557
Reply 2 on: Jun 30, 2018
Excellent

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial
The central roles of ATP and NAD(P)H in metabolism The central roles of ATP and NAD(P)H in metabolism
Vaccine Information Sheet (VIS) provided by the CDC for the varicella vaccination. Vaccine Information Sheet (VIS) provided by the CDC for the varicella vaccination.
The Central and Peripheral Nervous System The Central and Peripheral Nervous System
A ship is being pulled through a harbor at constant velocity by two tugboats as shown in the ... A ship is being pulled through a harbor at constant velocity by two tugboats as shown in the ...
Which of the 3 structures shown below has the shortest bond length? Justify your answer. Which of the 3 structures shown below has the shortest bond length? Justify your answer.
Video: Medullary osmotic gradient - influencing factors

For a complete list of videos, visit our video library