Which of the following conditions exists when data are isolated in separated information systems?

Which action is an example of an expansionary monetary policy?

Ilya [14]

Answer:

Lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.

Explanation:

<h3>General Concepts:</h3>

Monetary policy.

Expansionary monetary policy.

Contractionary monetary policy.

Open market operations.

Open market sale.

<h2>What is a Monetary Policy?</h2>

The Federal Reserve (or the Fed) implements its monetary policy by increasing or lowering the nation's money supply to achieve macroeconomic goals. The two types of monetary policies are <em>expansionary</em> and <em>contractionary</em> <em>monetary policies</em>.

<h3>Expansionary Monetary Policy</h3>

The Fed implements an expansionary monetary policy during periods of <em>recession</em> to increase the nation's money supply and stimulate aggregate demand for goods and services. The Fed has the following tools to implement its expansionary monetary policy:

Purchasing of government securities through the Federal Open Market Committee's (FOMC) <u>open market operations</u> (OMO). The OMO increases the banks' reserve account, which allows the latter to loan its <em>excess reserves</em>.
Lowering the reserve requirement means that the depository institutions will only have to maintain a lesser fraction of their <em>checkable deposits</em>. This allows banks to loan their excess reserves, thereby stimulating investment and consumer spending.
Lowering the discount rate below the <em>federal funds rate</em> enables<em> reserve deficient </em>depository institutions to acquire a <u>discount loan</u> from The Fed at a lower <em>discount rate</em>.

<h3>Contractionary Monetary Policy</h3>

The Fed implements a contractionary monetary policy during periods of <em>inflation</em>, which decreases the nation's money supply and slows down economic growth. The following are the Fed's tools for implementing its contractionary monetary policy:

The FOMC's open market sale of U.S. Treasury securities decreases the depository institutions' reserve account, and reduces the monetary base. Consequently, the banks will have lesser reserves to loan to borrowers.
Increasing the required reserve ratio implies that the banks must maintain a larger portion of its required reserves. This action increases the cost of loaning funds from other banks through the <em>federal funds market</em>, which discourages consumer and investment spending.
Increasing the discount rate above the federal funds rate discourages banks to acquire discount loans from the Fed. The banks' repayment of previous discount loans to the Fed also decreases the money supply.

<h2>Final Answer:</h2>

We can infer that lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.

Learn more about monetary policy: brainly.com/question/13926715

Learn more about expansionary and contractionary monetary policies:

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5 0

2 years ago

Goschan Bank is a multinational bank. The employees from the bank's branches in underdeveloped countries are not given higher po

Otrada [13]

Answer:

B) adverse impact

Explanation:

Adverse impact refers to those practices that seems to be neutral for all the people but have a discriminatory effect on a certain group. It takes place in activities like hiring, promotion, training etc. of employees.

4 0

4 years ago

A construction company has 12 workers who are paid minimum wage. The company wants to reduce costs because there is less work. W

faust18 [17]

Answer:

D) Select several workers to be laid off

Explanation:

As we know that the construction company has 12 workers who are paid minimum wage. But the company wants to reduce costs because there is less work then the company has to select several workers to be laid off though the companies costs will be saved. As the company has less work if the company will make the workers work more quickly, then also the company has to pay the wage of the workers. But if the company will the choose option 'D' it will help the company to save its costs.

6 0

3 years ago

The real exchange rate measures the: Group of answer choices number of foreign goods one unit of domestic currency can buy amoun

Anon25 [30]

Answer:

number of foreign goods required to purchase a single unit of a domestic good

Explanation:

The real exchange rate is the rate which says that the rate at which the goods and services that are produced in the domestic country would be exchanged with the foreign goods and services

It could find out by applying the following formula

The Real exchange rate is

= Nominal exchange rate × (Foreign price ÷ Domestic price)

Hene, the last option is correct

5 0

4 years ago

Suppose the demand function for avocados is Q = 104 - 40p + 20tp + 0.01Y, where p is the price of avocados, pt is the price of t

LiRa [457]

Answer: equilibrium price = 4

Quantity of avocado = 110units

Explanation:

Q = 104 - 40p + 20tp + 0.01Y........eq1

Q = 58 + 15p - 20pf...........eq2

pt = $0.80,

Y = $4,000,

pf = $0.40

From eqn1 substituting of into it

Q = 104 - 40p + 20($0.80) + 0.01($4000)

= 104 - 40p + 16 + 40

= 160/40p

p = 4 equilibrium price

From eqn2. Substituting p and pf into it.

Q = 58 + 15p - 20pf

Q = 58 + 15(4) - 20($0.40).

Q = 58 + 60 - 8

Q = 110 quantity of avocado

8 0

4 years ago