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
Inessa05 [86]
3 years ago
10

If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t

he banking system, finally leading to a decline in money supply?
A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓
B. Loans ↓; Deposits ↓; Reserves ↓; Excess reserves ↓; Money supply ↓
C. Deposits ; Reserves: Excess reserves; Loans ↓; Money supply ↓
D. Excess reserves ↓; Reserves ↓; Loans ↓; Deposits ↓; Money supply ↓
Business
1 answer:
AnnZ [28]3 years ago
4 0

Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

You might be interested in
The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6
Makovka662 [10]

Answer:

d. If the manager invests in the additional project, residual income of the division will increase.

Explanation:

RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)

with adding the additional project

Operating Income: $60000 +6000 =$66000

Operating Assets: $375000+$40000 =$415000

Residual income =$66000-14%*$415000 =$7900

Consider the attached information.

7 0
3 years ago
Regardless of the index we use:
Vitek1552 [10]

Answer:

b. we should get an accurate picture of how all consumer goods and services prices changed from year to year.

Explanation:

Wether it is ased on a fixed goods of goods or based on a changing goods of goods that gets old after time, we should check how is it work with this policy

The goal for the index is to adjust the value of assets by the inflation rate to calcualte the loss for having dollar bills.

6 0
3 years ago
An agreement between Jim and his 18-year-old daughter, Betty, provides that he will give her $25,000 if she does not marry until
Mariulka [41]

Answer:

No, Jim is not correct.

Explanation:

Betty will win this case.

Generally, the law encourages marriage as its policy. If there is any contract that prevent or restrict marriage in whatever way, such contract would be considered null and void because it is against the public policy.

Despite the above, contracts will be generally considered valid when they place reasonable restrictions on marriage. In this question, the restriction placed on Betty that she should get married until after her 22nd birthday is reasonable and has to be considered to be valid. Based on this, Betty has to be paid the $25,000 as laid down in the binding contract between the two parties.

Therefore, Jim is not correct.

4 0
3 years ago
HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Rainbow [258]

Answer:

True

Explanation:

The workplace refers to the place where an activity is carried out for the purpose of a monetary return. Each workplace is made up of different people, maintaining different dynamics. This way, every workplace is different. Even though it is standardized, the people who make up the place will give the workplace different dynamics, differentiating them.

8 0
3 years ago
Read 2 more answers
Which of the following behaviors is an example of deviance rather than crime?
Nikitich [7]

I think its either a) or d) Tell me if I’m wrong

5 0
3 years ago
Read 2 more answers
Other questions:
  • Why does a campground at a national park not necessarily count as a public good?
    10·2 answers
  • You are the supervisor of an employee who just learned that she did not receive the promotion she had anticipated. You call her
    13·1 answer
  • 16. Which type of footwear should be worn while working on a hybrid vehicle?
    8·2 answers
  • Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
    14·1 answer
  • Kevin fidgets and taps on things, sighs often, squirms, constantly checks the time, and yells at people when they ask him how a
    11·1 answer
  • Suppose that every product in a grocery store contains a tiny transmitter, and that sensors on your shopping cart detect your se
    11·1 answer
  • There are costs and benefits to either method of solving a Capitalizing Problem.<br> True or False?
    11·1 answer
  • Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must
    10·1 answer
  • A product's demand per period is normally distributed with a mean of 100 and standard deviation of 10. The in-stock probability
    8·1 answer
  • Why do some firms, industries, and cultures have different CSR thresholds than others? Illustrate your answer with real examples
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!