If the fed supplies fewer reserves than the reserve need

Reference no: EM131210834

Assume that the demand for required plus excess reserves is $50 billion, the level of discount borrowing is $100 million, and the actual level of nonborrowed reserves is $49 billion.

What is the reserve need if the existing degree of pressure on reserve positions is to be maintained?

What will happen if the Fed supplies fewer reserves than the reserve need?

Reference no: EM131210834

Questions Cloud

Explain the given statement : Explain the following statement: - Even though outright purchases account for less than 10 percent of Fed transactions, the Fed's portfolio of securities consists mainly of securities bought outright.

Identify three alternative methods for recognizing revenue : Identify three alternative methods for recognizing revenue and costs for the situation described and compute the amount of gross profit that would be recognized in 2016 using each method. Discuss the circumstances under which each of the three met..

Judicial precedent-court of appeal : Judicial precedent-Court of Appeal (Criminal Division) decision-How far binding-Defendant relying on Court of Appeal authority to appeal against confiscation order-Court of Appeal subsequently.

How the cardiovascular system responds to different levels : Title: Measuring Cardiovascular Endurance, Aim: To investigate how the cardiovascular system responds to different levels of physical activity. Hypothesis: Increasing the amount of exercise increases blood pressure and heart rate

If the fed supplies fewer reserves than the reserve need : What is the reserve need if the existing degree of pressure on reserve positions is to be maintained?- What will happen if the Fed supplies fewer reserves than the reserve need?

What are the implications of the given fed activities : What are the implications of the following Fed activities? - The Fed sells securities using reverse repurchase agreements. - The Fed buys securities using system repurchase agreements.

Sophomore and a chemistry major : (a) What is the probability that the student is both a sophomore and a chemistry major? (b) Given that the student selected is a sophomore, what is the probability that she is also a chemistry major?

Explain the bretton woods exchange rate system : Briefly explain the Bretton Woods exchange rate system. - When was it created? - When and why did the system collapse?

The us dollar was the official reserve asset : Under the Bretton Woods system, the U.S. dollar was the official reserve asset. - How did this affect the U.S. balance of payments on current and capital accounts?

User Account

All Pages