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Dmitriy789 [7]
2 years ago
12

When the fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate __

_____
Business
1 answer:
enyata [817]2 years ago
6 0

By acquiring government assets, the Fed helps to boost bank reserves and bring down the federal funds rate. Government securities will be sold by the Fed on the open market. In order for the federal funds rate to increase and the amount of money to fall, the Fed sells government assets.

<h3>What is government securities?</h3>

Government debt is issued in the form of government securities, which are then used to pay for military and infrastructure projects as well as ongoing operations. They frequently make periodic coupon or interest payments and guarantee the complete repayment of invested principal at security maturity. The U.S. Department of the Treasury issues debt obligations under the name "Treasury securities," which includes Treasury bills, notes, and bonds. Because they are backed by the full faith and credit of the United States government, Treasury securities are among the safest investments.

The minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards is known as bank reserves. The bank must store this actual paper money in a vault on the property or in an account with the national bank.

Hence, By acquiring government assets, the Fed helps to boost bank reserves and bring down the federal funds rate. Government securities will be sold by the Fed on the open market. In order for the federal funds rate to increase and the amount of money to fall, the Fed sells government assets.

To learn more about Government securities refer to:

brainly.com/question/14256204

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Which of the following events would cause a rightward shift of the AD curvea rightward shift of the AD curve​, other things bein
Karolina [17]

Answer: C. There has been a decline in the foreign exchange value of the nation’s currency.

Explanation:

The Demand curve of a country can be written as an equation which is

C+I+G+(X-M)

C is consumption, I is investment, G is government expenditure, X is exports, M is imports and X-M is net exports.

When ever consumption, investment, government expenditure or net exports increase the demand curve shifts to the right and whenever they decrease the demand curve shifts to the left.

In this case when the value of the currency foreign exchange declines, the country reduce its imports because they are now more expensive as your currency's value is declining and the exports will increase because they will now be cheaper to foreign buyers as their currency is now gotten stronger. This decrease in imports and increase in exports will  increase net exports and an increase in net exports will shift the demand curve to the right

8 0
4 years ago
A manufacturing operation consists of 10 operations. However, five machining operations must be completed before any of the rema
Anit [1.1K]

Answer:

The answer is: 14,400 different production sequences are possible

Explanation:

For this calculation I will assume that the first 5 operations can be made in any order, as well as the last 5.

For the first set of machining operations, since they can go in any order, you choose one operation and then you have 4 operations left, then you choose another operation and you have 3 operations left, then you choose another operation and you have 2 operations left, you choose another option and you have only 1 operation left.  This process can be expressed by the following equation: 5 x 4 x 3 x 2 x 1 = 120 possible different combinations. Mathematically it can also be expressed as 5! = 120

The same for the last 5 assembly operations, you have 5 x 4 x 3 x 2 x 1 = 120 possible different combinations.

So to get the total possible combinations of all the process, we just multiply 120 x 120 = 14,000 or 5! x 5! = 14,400

8 0
3 years ago
Free agency in the NFL has:
arsen [322]
They can do what they want they are millionaire athletes that have a fanbase not saying its right by any means. 
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3 years ago
The Ad Council of America creates an ad that shows teens in a car having fun while driving in the city. They are enjoying music
valentinak56 [21]

Answer:The idea of the Ad - do not text while driving

Explanation:

Texting and driving is dangerous – that is a fact. Americans are highly aware of and concerned about the issue. More than nine in ten Americans believe sending (94%) and reading (91%) texts while driving is dangerous or very dangerous. There have been many efforts to educate and convey the potential consequences of texting and driving using scare tactics or preachy messaging. And, while research shows that people are convinced that the behavior is dangerous, they are still doing it. In order to address the disconnect between awareness and behavior, the Texting and Driving Prevention campaign aims to go beyond showing people the potential crashes and gruesome end results.Texting while driving, also called texting and driving, is the act of composing, sending, reading text messages, email, or making similar use of the web on a mobile phone while operating a motor vehicle. Texting while driving is considered extremely dangerous by many people, including authorities, and in some places have either been outlawed or restricted. As a form of distracted driving, texting while driving significantly increases the chances that a driver will be involved in a motor vehicle accident.

4 0
3 years ago
The hernandez family budgets $420 a month for food. last month they spent $413, which creates a?
MAVERICK [17]

A budget surplus of $7

<h3>What is a budget surplus's opposite?</h3>

A budget deficit is the polar opposite of a budget surplus. If a company (or government) has a budget deficit, it signifies that over the given timeframe, it spent more money than it brought in. A business's budget deficit could necessitate a budget reform for the upcoming fiscal year, even though a budget deficit for the government is not always negative for spending.

<h3>What does the term "surplus" mean?</h3>

A surplus is a sign that the government is being run efficiently. When government income is higher than government expenditures for a specific time period, typically a fiscal year, there is a surplus, which is a positive number.

<h3>How is inflation caused by a budget surplus?</h3>

Nevertheless, inflationary pressures can also exist when the economy is struggling. In essence, a rise in the money supply is what causes inflation. In light of the foregoing, a budget surplus will drain funds from the economy, hence lowering the money supply and fostering a deflationary environment.

Learn more about budget surplus:

brainly.com/question/26010226

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2 years ago
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