Question

why are checking account balances , not credit cards , regarded as "monney "? what are...

why are checking account balances , not credit cards , regarded as "monney "?

what are the economy risks of aggressive fed open-market operations?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Why are checking account balances , not credit cards , regarded as "money "?

Checking account balances fulfils the purpose of money as a medium of exchange because belongs to the person thus have the same market function as cash. On contrary credit cards is not real money, just a loan that a person will have to pay back with interest. Credit card is medium to take loan however not legal tender itself.

2) What are the economy risks of aggressive fed open-market operations?

The economy risk of aggressive fed open-market operations includes instability to the financial system, a sudden rise in inflation and interest rates. Moreover there is a risk of normalization of monetary policies. Moreover involves involve the aggressive monetary stimulus of Central Bank. Things will not be favorable if Fed will carry on its money-printing and asset-buying into the future.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 5 Checking deposits (balances of checking accounts) are: A. assets of the banks. B. liabilities...
QUESTION 5 Checking deposits (balances of checking accounts) are: A. assets of the banks. B. liabilities of the banks. C. liabilities of the public. D. none of the above. 10 points    QUESTION 6 banks create money when they: A. make new loans to the public. B. accept deposits. C. transfer checking balances from one customer to the checking account of another customer.   D. none of the above. 10 points    QUESTION 7 Which of the following would increase money...
The Bank of Connecticut issues Visa and MasterCard credit cards. It is estimated that the balances...
The Bank of Connecticut issues Visa and MasterCard credit cards. It is estimated that the balances on all Visa credit cards issued by the Bank of Connecticut have a mean of $850 and a standard deviation of $265. Assume that the balances on all these Visa cards follow a normal distribution. A. What is the probability that a randomly selected Visa card issued by this bank has a balance between $1000 and $1410 ? Round your answer to three decimal...
The Bank of Connecticut issues Visa and MasterCard credit cards. It is estimated that the balances...
The Bank of Connecticut issues Visa and MasterCard credit cards. It is estimated that the balances on all Visa credit cards issued by the Bank of Connecticut have a mean of $830 and a standard deviation of $275. Assume that the balances on all these Visa cards follow a normal distribution. a. What is the probability that a randomly selected Visa card issued by this bank has a balance between $950 and $1400? Round your answer to three decimal places....
You are making a report to your managers about the checking account balances for different customers....
You are making a report to your managers about the checking account balances for different customers. For a sample of 60 customers, it was found that the mean account balance was $3,750 and the median was $4,011. What does this imply? How can this information be useful to the managers of a business?
A sample of 81 account balances of a credit company showed an average balance of $1,200....
A sample of 81 account balances of a credit company showed an average balance of $1,200. The population standard deviation is $126. You want to determine if the mean of all account balances is significantly different from $1,150. Use a .05 level of significance. a) State the null and alternative hypotheses. b) Calculate test statistic. c) What is the p-value for this test? d) What is the critical value for this test? e) What is your conclusion? Why?
A company allows its customers to use bank credit cards to charge purchases. When customers use...
A company allows its customers to use bank credit cards to charge purchases. When customers use the credit cards, the net amount is deposited in the company's checking account, less a 2.5% service charge. Assume that on April 13, the company sold $20,000 worth of merchandise to customers who used credit cards. Prepare the company's journal entry to record the credit card sales for April 13 assuming the company deposited the receipts that same day.
A savings and loan association needs information concerning the checking account balances of its local customers....
A savings and loan association needs information concerning the checking account balances of its local customers. A random sample of 14 accounts was checked and yielded a mean balance of $664.14 and a standard deviation of $297.29. Find a 95% confidence interval for the true mean checking account balance for local customers. Use the given degree of confidence and sample data to construct a confidence interval for the population mean μ. Assume that the population has a normal distribution. Round...
What features and fees are associated with checking accounts? Checking accounts, or what are more generally...
What features and fees are associated with checking accounts? Checking accounts, or what are more generally called checkable deposits, are accounts that allow account holders to write checks against the balance. In addition to checks, these accounts usually offer debit, or check, cards that account holders can use either in an automated teller machine (ATM) or in a point-of-sale (POS) terminal. There are two major types of checking accounts. The distinguishing characteristic involves which of the following? The payment of...
why differences exist between the Bank Balance and the Book Balance of the checking account.
why differences exist between the Bank Balance and the Book Balance of the checking account.
The Federal Funds target range set by the FOMC is 2- 2.25%. Suppose due to temporary...
The Federal Funds target range set by the FOMC is 2- 2.25%. Suppose due to temporary market changes, the Federal Funds rate in the market decreases to 1.70%. The Fed wants to keep the federal fund rate in the target rage. a. If the banking system has limited reserves, what kind of open market operations (purchases or sales) will the Fed use? b. Are these open market operations considered dynamic or defensive? Why? c. If the banking system has ample...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT