Answer:
Increases; Rise
Explanation:
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement increases the demand of reserves and causes the federal funds interest rate to rise, everything else held constant.
Answer:
8.5%
Explanation:
The computation of the percentage offer on its commercial paper is presented below:
= Annualized T-bill rates + credit risk premium + liquidity premium
= 8% + 0.3% + 0.2%
= 8% + 0.5%
= 8.5%
In order to determine the percentage offer it would be 8.5% by considering all the percentage rate that is mentioned in the question
Answer:
E. The FOMC instructs the NY trading desk to sell government bonds on the open market.
Explanation:
FOMC The Federal Open Market Committee is charged under US Laws.
This is controlled through transactions of FOMC,
When Federal Committee (FOMC) purchases bonds from open markets then there is an instant increase in level of reserves in the banking system.
Thereafter, the sale by Federal Committee in the open market tend to decrease the level of reserves in the banking system.
This is directly related to the reserve level.
Answer:
Personal elaboration
Explanation:
Personal elaboration is the simplest and important form of recall memory. In this process, the consumer can recall the deepest comprehension and then there is the greatest chance to recall accurately.
Different strategies play a great part in this process.
- To describe the place in details
- Use very specific words
- Show taste, smell, feeling, smell.
- To show the comparison between two similar things
- To use the exact words from another person
- To describe something movement about objects
- Show the feeling that how something has happened
-
Answer:
B.
Explanation:
Soft money can be defined as a money raised by party or committees that's not been regulated by the federal campaign finance. Such campaign contributions are not made within the federal law and thus are illegal to raise. These monetary contributions are used for party building activities such as electoral registration programmes. The origin of soft money dates back to the Watergate reforms.
<u>In the given case, the monetary contributions were used for party-building expenses or generic party advertising. Thus this monetary contribution is known as soft money.</u>
So, the correct answer is option B.
