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

Author Question: The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United ... (Read 96 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United States.
 
  A) first
  B) second
  C) third
  D) fourth

Question 2

Suppose the required reserve ratio is 8 and that banks hold no excess reserves and the public does not change its currency holdings. If the Fed sells 5 million worth of securities, what happens to the amount of deposits in the banking system?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

succesfull

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

The simple deposit multiplier is 1/0.08 = 12.5. The amount of deposits changes by 5 million  12.5 = -62.5 million.


james9437

  • Member
  • Posts: 568
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Several species of squirrels have melanistic phases. In large parts of United States and Canada, the Several species of squirrels have melanistic phases. In large parts of United States and Canada, the
Conduction system of the heart. Conduction system of the heart.
The Rise of the Second American Party System, 1828 The Rise of the Second American Party System, 1828
Municipal Solid Waste (MSW) Generation in the United States Municipal Solid Waste (MSW) Generation in the United States
Structures of the respiratory system. Structures of the respiratory system.
Remote satellite monitoring of gross primary productivity across the United States. The differences Remote satellite monitoring of gross primary productivity across the United States. The differences
Video: Dietary Cholesterol & LDL

For a complete list of videos, visit our video library