Which of the following policy actions by the Fed would cause the money supply

Which of the following policy actions by the fed

This preview shows page 2 - 3 out of 3 pages.

20.Which of the following policy actions by the Fed would cause the money supply to decrease? 21.When the Fed purchases government securities, it: 22.When the discount rate rises, the cost: 23.When the Fed lowers the discount rate, it: 24.If a bank keeps some of its excess reserves, the money multiplier: 25.When new checkable deposits are created through loans,the money supply expands. 26.Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance will be: 27.Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by: 28.Best National Bank is subject to a 20 percent required-reserve ratio. If this bank received a new checkable deposit of $1,000, it could make new loans of: 29.If loans are $300,000, checkable deposits are $600,000, and the required reserve ratio is 40 percent, then excess reserves are: 30.If the Fed buys $10 million dollars in government bonds from a bank, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture