Question

,Know federal reserve when engages in contractionary monetary policy?, What are assets on a balance sheet...

,Know federal reserve when engages in contractionary monetary policy?,

What are assets on a balance sheet or financial intermediary? ,
How may a bank reduce default risk ?
What will happen to the income gap

,Know the relationship interest rates and income gaps

Homework Answers

Answer #1

What are assets on a balance sheet?

Things .that are resources owned. by a company. and which have a future. economic value that can. be. measured and can. be expressed in dollars. Examples .include cash, investments, accounts. receivable, .inventory, .supplies, land, .buildings, .equipment, and .vehicles

Assets = Liabilities. + Owner's .(Stockholders'). Equity.

How may a bank reduce default risk?

Bank can .reduce default. risk by .taking protection from .the .borrower .in advance, monitoring the. borrower during loan agreement., the collection of .nonperforming loans

The relationship between interest rates and income gaps?

Low-interest rates tend to .increase the income gap. lower interest rates .have more benefits for the rich as compared to the .poor therefore the .income gap will increase.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
33. In the early 1980s, after the Federal Reserve engaged in very contractionary monetary policy and...
33. In the early 1980s, after the Federal Reserve engaged in very contractionary monetary policy and raised interest rates, Savings & Loan banks (S&Ls) a. Became stronger since they correctly forecast that interest rates would rise b. Were unaffected because their cost of borrowing did not change c. Became largely insolvent due to prior maturity mismatching d. Had not yet emerged as a prominent financial institution
Suppose the central bank engages in contractionary monetary policy that results in lower money growth This...
Suppose the central bank engages in contractionary monetary policy that results in lower money growth This lower money growth will cause which of the following in the short run? 1 Lower real interest rates and lower nominal interest rates 2 Lower real interest rates and higher nominal interest rates 3 Higher real interest rates and higher nominal interest rates 4 Higher real interest rates and lower nominal interest rates
When the Federal Reserve engages in looser monetary policy through open market operations, it ___________ bonds....
When the Federal Reserve engages in looser monetary policy through open market operations, it ___________ bonds. Group of answer choices a) purchase b) sells c) calls d) changes ratings on
PROBLEM 5:   MONETARY POLICY If the central bank of Canada institutes a contractionary monetary policy, describe...
PROBLEM 5:   MONETARY POLICY If the central bank of Canada institutes a contractionary monetary policy, describe what will happen to the following variables relative to what would happen without the policy: The money supply Interest rates Investment Consumption Net Exports The aggregate demand curve Real GDP The price level The value of the Canadian dollar The long run aggregate supply curve PROBLEM 5:   MONETARY POLICY If the central bank of Canada institutes a contractionary monetary policy, describe what will happen...
What is fractional reserve banking? Draw a balance sheet of a bank that engages in fractional...
What is fractional reserve banking? Draw a balance sheet of a bank that engages in fractional reserve banking.
Suppose that in a closed economy the fiscal policy is contractionary and monetary policy is expansionary,...
Suppose that in a closed economy the fiscal policy is contractionary and monetary policy is expansionary, and the central bank is setting the interest rates (LM is horizontal). Graphically analyze this policy mix by using IS-LM diagram. What will be the impact on real income and on interest rate in the short run? What will be the impact of this policy mix on the economy in the medium run? Show by using an AD-AS-LRAS diagram.
1. The most commonly used tool of monetary policy in the U.S. is the reserve requirement...
1. The most commonly used tool of monetary policy in the U.S. is the reserve requirement commercial banks must keep on hand at the Fed. TRUE/FALSE? 2. Open market operations take place when the central bank sells or buys U.S. Treasury bonds in order to influence the quantity of bank reserves and the level of interest rates. The specific interest rate targeted in open market operations is the discount rate.  TRUE/FALSE? 3. The Federal Reserve System is run by the government,...
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money...
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money supply.   In the United States, Monetary Policy is implemented by the Federal Reserve/ President and Congress/ Secretary of the Treasury/ states. b. Contractionary Monetary Policy/ Lower prices/ Expansionary MonetaryPolicy/ Larger coins can be used to address a Recessionary Gap; while Expansionary MonetaryPolicy/ smaller coins/ Contractionary Monetary Policy/ higher prices can be used to address an Inflationary Gap. c.  To enact Contractionary Monetary Policy, the central bank...
When a bank repays a loan at the discount window to the Federal Reserve, it will...
When a bank repays a loan at the discount window to the Federal Reserve, it will __________ the monetary base by __________ bank reserves. Select one: a. decrease; decreasing b. increase; decreasing c. decrease; increasing d. increase; increasing The securities that the Federal Reserve holds on its balance sheet include Select one: a. ?US Treasury securities, federal agency debt, and privately issued mortgage-backed securities. b. ?privately issued stocks, US Treasury securities, and federal agency debt. c. municipal bonds, privately issued...
1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C....
1.The Federal Reserve System is responsible to A. regulate securities exchanges. B. conduct monetary policy. C. provide payment and other services to certain types of financial institutions. D. setting bank prime rates. E. both B and C. 2.         Which of the following does the Federal Reserve Banks do in regard to bank supervision? I. Examinations of state-chartered member banks II. Approval of member bank and bank holding company acquisitions III. Provide deposit insurance A. I only B. I and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT