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This question has not been answered completely The Fed has a balance sheet just like any other bank, and its assets and liabilities work in the same...

1.
This question has not been answered completely

The Fed has a balance sheet just like any other bank, and its assets and liabilities work in the same way in terms of their placement. Therefore, we can guess that the 'discount loans' account


A. is an asset to the Fed and an asset to the banking system


B. is an asset to the Fed and a liability to the banking system


C. is a liability to the Fed and an asset to the banking system


D. is a liability to the Fed and a liability to the banking system


2.
This question has not been answered completely

Discount loans


A. have changed over time in that now their interest rate is lower than the federal funds rate


B. are the most frequently used monetary policy tool


C. make it easier or harder for a bank to borrow actual reserves


D. are an interest-free transaction

3.
This question has not been answered completely

When a discount loan takes place, banks


A. lose an asset and a liability


B. gain an asset and a liability


C. gain one asset and lose another


D. gain one liability and lose another


4.
This question has not been answered completely

When the Federal Reserve conducts $2000 worth of tight money policy with open market operations with Some Bank as its trading partner, on Some Bank’s balance sheet


A. assets rise by $2000; its US government bonds account balance rises by $2000


B. assets fall by $2000; its Deposit in the Fed account balance falls by $2000


C. assets remain unchanged; its US government bonds account balance falls by $2000


D. assets remain unchanged; its Deposit in the Fed account balance falls by $2000


5.
This question has not been answered completely

Which of the following is true about easy and tight money policies?


A. They are done by changing government spending and/or taxes.


B. In tight money policy, actions taken by the Fed tend to make interest rates fall.


C. An easy money policy would most likely be enacted during a time of depressed economic activity.


D. None of the above is correct.


6.
This question has not been answered completely

Consider a bank with $500 in cash, $2000 in savings deposits, and $3000 in US government bonds. Which of the following would result in the bank being in violation of reserves rules, assuming a 10% required reserve ratio?


A. $600 in Deposit in the Federal Reserve and $10,000 in demand deposits


B. $1000 in actual reserves and $15,000 in checking


C. $3600 in demand deposits


D. $3000 in checking deposits


E. none of the above, or we can't tell from the information given


1. This question has not been answered completely The Fed has a balance sheet just like any other bank, and its assets and liabilities work in the same way in terms of their placement. Therefore, we can guess that the 'discount loans' account A. is an asset to the Fed and an asset to the banking system B. is an asset to the Fed and a liability to the banking system C. is a liability to the Fed and an asset to the banking system D. is a liability to the Fed and a liability to the banking system 2. This question has not been answered completely Discount loans A. have changed over time in that now their interest rate is lower than the federal funds rate B. are the most frequently used monetary policy tool C. make it easier or harder for a bank to borrow actual reserves D. are an interest-free transaction 3. This question has not been answered completely When a discount loan takes place, banks
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A. lose an asset and a liability B. gain an asset and a liability C. gain one asset and lose another D. gain one liability and lose another 4. This question has not been answered completely When the Federal Reserve conducts $2000 worth of tight money policy with open market operations with Some Bank as its trading partner, on Some Bank’s balance sheet A. assets rise by $2000; its US government bonds account balance rises by $2000 B. assets fall by $2000; its Deposit in the Fed account balance falls by $2000 C. assets remain unchanged; its US government bonds account balance falls by $2000 D. assets remain unchanged; its Deposit in the Fed account balance falls by $2000 5. This question has not been answered completely Which of the following is true about easy and tight money policies? A. They are done by changing government spending and/or taxes. B. In tight money policy, actions taken by the Fed tend to make interest rates fall.
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This question has not been answered completely
The Fed has a balance sheet just like any other bank, and its assets and liabilities work in the
same way in terms of their placement. Therefore,...

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