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Alina [70]
3 years ago
14

In the 1780s, all of the following were problems facing the new nation except

Social Studies
1 answer:
Gnesinka [82]3 years ago
4 0

Answer:

Option 1

Explanation:

The major problem prevailing in the nation during the 1780s were as follows

a) There was  economic and foreign policy problems which caused  huge debt arising out of Revolutionary War and paper money

b) There were discussion going on delegation of power of the federal government or the states which led to intense divisions among the different states

c) The national government too was struggling because of the - a) state court system, b) Unstable state government and c) Powerless Congress unable to help anyone.

Hence, option 1 is correct

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Over time, with changes in the demand for loanable funds and the supply of loanable funds change the real interest rate will occur. The interest rates will increase with the increase in demand and decrease with increase in supply.

Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend to borrowers as an investment rather than personal use.

Interest rates can determine how much money lenders are willing to save and invest. When the demand for the loanable funds increases it pushes the rates up, and when the supply of the loanable fund decreases it pushes the rates lower.

Central banks can manipulate the interest rates to influence the economy.

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Answer:

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Open market operation : This is used when the central bank feels that the money in circulation is too little and wants to increase it, the bank will buy treasury bill from the commercial banks and give the commercial banks money. This will increase the money in circulation. But if the central bank feels that the money in circulation is too much and it wants to withdraw some, then the central bank sells treasury bill to the commercial banks and collect money from commercial banks this will decrease the money in circulation

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Cash Reserves : All commercial banks are expected to keep a certain percentage of their total deposit with the central bank. If the cash deposit ratio is increased the quantity of money left for commercial banks to lend out is reduced, but if the cash deposit ratio is reduced, then the quantity of money left for commercial banks to lend out is increased.

The Directives : The central bank may give central directives to commercial banks which they must follow, for example the central bank may ask the commercial banks to give credit for agricultural and industrial expansion. This will be the immediate channels to which credit may be directed.

Special Deposits : If the central bank is so pressed and decides to decrease credit facilities or the availability of loans it may ask the commercial banks to keep special deposits with it.This is done to contract credit only.when special deposit are kept with the central bank the amount of money left with the commercial banks is reduced and this reduces their ability to give loans.

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"which law designates the steps that federal agencies must follow in issuing rules and regulations?"
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