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egoroff_w [7]
1 year ago
11

If the fed wants to raise the federal funds rate by one-half of a percentage point, it should _____

Business
1 answer:
Assoli18 [71]1 year ago
8 0

If the fed wants to raise the federal funds rate by one-half of a percentage.

The bank should reduce the reserves by $50 billion.As initiallly the supply curve of reserves is S11 , when the supply decreases to S12 , it leads to the increase in the feds funds rate to 6.

Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other monetary establishments deposit at local Federal Reserve banks; these funds may be lent, then, to different market individuals with inadequate cash available to satisfy their lending and reserve wishes.

The Federal Reserve raised the goal range for the fed budget fee by way of at some point of its assembly, the fourth consecutive rate hike, and pushing borrowing charges to the highest level considering the fact that matching market forecasts.

Federal budget are reserves held in a financial institution's Federal Reserve bank account. If a financial institution holds extra fed funds than is required to cover its law D reserve requirement, those excess reserves may be lent to some other financial organization with an account at a Federal Reserve bank.

Learn more about  federal funds here:- brainly.com/question/6270391

#SPJ4

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According to Incoterms, the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delive
AnnyKZ [126]

Answer: True

Explanation:

Free Alongside (FAS) is an International Commerce term (Incoterm) that is used to describe that a seller should deliver goods to within reach of a Buyer's transportation vessel so that it may be ready to be picked up by the Buyer's vessel easily.

"FAS Name of Vessel" means that the seller should deliver the goods next to the Vessel named so that it may then be re-loaded into the vessel. The risk therefore passes to the Buyer from the Seller once this is done.

6 0
3 years ago
Which action would a government most likely take to reduce its<br> unemployment rate?
ss7ja [257]
A because if you increase taxes people won’t want t to work
6 0
2 years ago
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The accounting and tax departments are the responsibility of the _____. a. ​inventory manager b. ​controller c. ​vice president
wel

Answer: Controller

         

Explanation: Controller refer to the accounting officer of the company whose job is to analyze and interpret the transactions related to accounting and fiance.

The duties of controller include conducting internal audit, updating financial statements, filing tax applications on time etc.

Thus, from the above we can conclude that the correct option is B.

4 0
2 years ago
An increase in aggregate demand has what outcome on price level and output with respect to long-run equilibrium?
DedPeter [7]

Answer:

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4 0
3 years ago
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The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The proble
shusha [124]

Answer:

Insolvent banks;Solvent banks.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The problem with bank runs is not that insolvent banks will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause solvent banks to fail and spread to the rest of the financial system.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

6 0
3 years ago
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