There are several ways that central banks can increase or decrease the money supply. Match the descriptions below with the corre
sponding policy tool. It is possible that a description does not apply to any of the terms. a. Open Market Operations
b. Reserve Requirement
c. Discount Rate
1. A government printing more currency.
2. An increase in the percentage of deposits that bank must keep on hand.
3. An increase in the interest rate that a central bank charges commercial banks for loans.
4. An increase in government spending
5. A central bank purchasing existing bonds.
An increase in the percentage of deposits that bank must keep on hand- RESERVE REQUIREMENT
2. An increase in the interest rate that a central bank charges commercial banks for loans - DISCOUNT RATE
Open Market Operations - A central bank purchasing existing bonds.
1 and 4 are not instances of monetary policy
Explanation:
Monetary policy are policies taken by the central bank of a country to shift aggregate demand.
Tools of monetary policy
1. Open market operations : government can either sell bonds to the public, this is known as open market sales. this is an example of an contractionary policy or it can buy bonds from the public. this is known as open market purchase. it is an expansionary policy
2. Reserve Requirement : Reserves are the proportion of deposits required by the central bank that banks keep
If reserve requirement is increased, it is an example of a contractionary policy. If on the other hand, it is reduced, it is an example of an expansionary policy.
3. Discount rate : this is the rate at which the central bank lends to commercial banks. An increase in discount rate is a contractionary policy while an decrease in discount rate is an expansionary policy
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
The item that is not normally included in the ANSI
recommendations but are included and recommended by other group is the defibrillator,
this is useful in medical situations in which it has the ability to treat
cardiac dysrhythmias that is life threatening.
D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Saying sorry is not enough in most cases. The apology should include efforts to remedy or reduce the harm caused. Some kind of compensation.
Bill should find out what consequences his action had on Sally, and thus try to compensate in a way that the negative consequences are eliminated or minimized: is it necessary to replace something?, is it necessary to pay for monetary loss?, are feelings hurt, so that you need to change your behavior to remediate the situation?
Start by establishing the consequences of your action on the offended person and then implement a remedy.
