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vodomira [7]
3 years ago
8

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder

al Reserve when they find themselves short on reserves. A higher discount rate ___________ banks' incentives to borrow reserves from the Federal Reserve, thereby ___________ the quantity of reserves in the banking system and causing the money supply to (fall or rise).
The federal funds rate is the interest rate that banks charge one another for short-term ___________ loans. When the Federal Reserve uses open-market operations to buy govenment bonds, the quantity of reserves in the banking system __________, banks' demand for borrowed reserves ___________, and the federal funds rate __________.
Business
1 answer:
tigry1 [53]3 years ago
8 0

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

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According to the Prebisch-Singer hypothesis, this fate has befallen many developing countries given the general decline in commo
julsineya [31]

Answer: True

Explanation;

Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.

This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.

4 0
3 years ago
Where should essential oils be placed for use in tandem with steam treatments?
Bas_tet [7]
In food preservation 
8 0
3 years ago
1) A global company can be headquartered anywhere, but usually most of its employees come
Svetradugi [14.3K]

Answer:

False

Explanation:

A global company is a country that extends beyond the boundaries of the country of origin to carry out business activities but still maintain a consistent practice with the origin company

However , despite the its presence in other countries , the headquarters remains in the country of origin.

Moreover , it does not need to depend on the employees from the home country but rather from the host country.

8 0
3 years ago
An offer that cannot be revoked because an offeror promises to hold the offer open for a specified time in exchange for payment
vichka [17]

Answer:

Option Contract

Explanation:

According to the Laws Termination of the Power of Acceptance, there are four types of offer terms. These types are Counter Offer, Option Contract, Conditional or Qualified Acceptance, and Firm Offer. With these 4 types being the options, based on the description given in the question we can say that the one being described is an Optional Contract. Which as described in the question is a contract that is held open for a period of time in which it cannot be revoked.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
What’s an example of Opportunity Costs?
AnnZ [28]
Not being able to do something because of the time and resource and the thing you already did.
5 0
3 years ago
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