1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Reika [66]
3 years ago
10

A problem that the Fed faces when it attempts to control the money supply is that a. since the U.S. has a fractional-reserve ban

king system, the amount of money in the economy depends in part on the behavior of depositors and bankers. b. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools. c. while the Fed has the ability to change the money supply by a large amount, it does not have the ability to change it by a small amount. d. federal legislation in the 1950s stripped the Fed of its power to act as a lender of last resort to banks.
Business
1 answer:
NeTakaya3 years ago
5 0

Answer:

A) since the U.S. has a fractional-reserve banking system, the amount of money in the economy depends in part on the behavior of depositors and bankers.

Explanation:

Since US banks operate under a fractional reserve banking system, they have the capacity to create money through the money multiplier, e.g. you deposit $1,000 in bank A, then bank A borrows $850 to Steven and he purchases a new bike from Sarah. Then Sarah deposits the money in bank B, and bank B borrows $722 to George who buys a laptop from Henry. Henry then deposits the money in bank C, and bank C borrows $614 to Susan, and this goes on and on.

The problem that the Fed faces is that in order for the fractional reserve system to work, households must hold their money in banks. Ans that is something that the government cannot control, specially the amount or portion that is deposited. The other players are banks, that ideally should borrow all the money that they are allowed to.

You might be interested in
Bay Manufacturing Co. purchased a 3-month U.S. Treasury bill. In preparing Bay's statement of cash flows, this purchase would:A.
Lesechka [4]

Answer:

A. have no effect.

Explanation:

The US Treasury Bill was purchased at short-term

So it would not affect the company's cash balance.

The rule for short-term invstment is to have litle risk

and a mature of less than 90 days

the US TB fullfil both, it has no risk and matures within 90 days It is considered a cash equivalent.

7 0
3 years ago
A. atlas
Arada [10]

Answer:

Huh? Ano yung tanong miss?

7 0
2 years ago
Maddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $
Sergeu [11.5K]

Answer:

$4,038

Explanation:

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

Present Value = Future Value  x (1/  ( 1 + interest rate ) ^ number of periods)

Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)

Present Value  = 6,000 x 0.68058

Present Value = $4,038

4 0
2 years ago
What's the idea behind bitcoin and its exchange rates ? ​
Brums [2.3K]

Answer:

Explanation:

https://www.bitcoinsxchanger.com/zcash-to-webmoney.php  

Zcash to webmoney exchange digital coin for free is one of the best part of this site. Exchange your zcash and get big profit. We have millions of people that are exchanging their crypto coins with world's largest exchange market. Visit for more.

5 0
3 years ago
The person who receives financial protection from a life insurance plan is called
AveGali [126]

The person who receives financial protection from a life insurance plan is called a Beneficiary. The other side is the policy owner. he beneficiary is usually selected at the time of the policy inception by the owner of the contract.Beneficiary Order ,  Beneficiary Changeability  and Beneficiary Legal Type are the three types of Beneficiaries for Life Insurance.

4 0
3 years ago
Other questions:
  • Lakeland Inc. employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that host
    7·1 answer
  • For any given product, _____ is determined by what the market will bear.
    15·1 answer
  • Identify the various acts of copyright violation and measures to prevent those acts. Monica recently heard about copyright. She
    13·1 answer
  • The primary purpose of protective covenants is to help:
    5·1 answer
  • The following events result in a tax. Which is an example of a direct tax?
    14·1 answer
  • Suppose a state passes a minimum wage law that increases the minimum wage from $5/hour to $20/hour. The equilibrium wage prior t
    10·1 answer
  • What are the features of a corporation? The chief distinguishing factor of a corporation is its . An investor who purchases stoc
    6·2 answers
  • Diversification is important in investing because…A. It helps you to balance your risk across different types of investments.B.
    15·2 answers
  • If the market maker is willing to purchase the entire block of 1,500 shares from Amara and, from that block, resell 1,000 shares
    5·1 answer
  • Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!