Question : 11) The quantity of reserves supplied equals A) nonborrowed reserves minus : 1373786

 

11) The quantity of reserves supplied equals

A) nonborrowed reserves minus borrowed reserves.

B) nonborrowed reserves plus borrowed reserves.

C) required reserves plus borrowed reserves.

D) total reserves minus required reserves.

 

12) In the market for reserves, when the federal funds interest rate is below the discount rate, the supply curve of reserves is

A) vertical.

B) horizontal.

C) positively sloped.

D) negatively sloped.

 

13) When the federal funds rate equals the discount rate

A) the supply curve of reserves is vertical.

B) the supply curve of reserves is horizontal.

C) the demand curve for reserves is vertical.

D) the demand curve for reserves is horizontal.

 

14) In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant.

A) sale decreases

B) sale increases

C) purchase increases

D) purchase decreases

 

15) In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall, everything else held constant.

A) increases; supply

B) increases; demand

C) decreases; supply

D) decreases; demand

16) Suppose on any given day there is an excess demand of reserves in the federal funds market. If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.

A) defensive; sale

B) defensive; purchase

C) dynamic; sale

D) dynamic; purchase

 

17) In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the supply of reserves and causes the federal funds interest rate to ________, everything else held constant.

A) decreases; fall

B) increases; fall

C) increases; rise

D) decreases; rise

 

18) Suppose on any given day the prevailing equilibrium federal funds rate is above the Federal Reserve’s federal funds target rate. If the Federal Reserve wishes for the federal funds rate to be at their target level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.

A) defensive; sale

B) defensive; purchase

C) dynamic; sale

D) dynamic; purchase

 

19) In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the supply of reserves causing the federal funds rate to ________, everything else held constant.

A) decreases; decrease

B) increases; decrease

C) increases; increase

D) decreases; increase

20) Suppose on any given day there is an excess supply of reserves in the federal funds market. If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.

A) defensive; sale

B) defensive; purchase

C) dynamic; sale

D) dynamic; purchase

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more