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 115 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
:D TYSM

kilada

  • Member
  • Posts: 311
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

An open circulatory system. An open circulatory system.
Central Asian Shepherd Dog Central Asian Shepherd Dog
Conduction System of the Heart Conduction System of the Heart
The calibration module on many Ford computers contains a system PROM. The calibration module on many Ford computers contains a system PROM.
Apothecary System Apothecary System
Infections in the Digestive System Infections in the Digestive System
Video: Methods of carbon dioxide transport - carbaminohemoglobin and bicarbonate ions

For a complete list of videos, visit our video library