Open-market to maintain its existing fed funds target rate

Assignment Help Microeconomics
Reference no: EM13694661

Suppose households and small firms withdrew funds from banks in response to rumours circulating that a computer virus would destroy banks customer account databases. What action would the Fed have to take in the open-market to maintain its existing fed funds target rate?

Reference no: EM13694661

Questions Cloud

Spreading the overhead-break-even level of production : Explain the following terminologies in economics-Spreading the overhead. A break-even level of production. The efficiency of mass production?
What circumstances is the tractor-trailer a fixed input : Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of United States. The most common lead of the specialty trucker is the Caterpillar model 740 dump truck, which is about 258 feet lo..
A single price monopoly has a marginal revenue curve : A single price monopoly has a marginal revenue curve that is
Spend on product development and marketing by : Firms decide how much to spend on product development and marketing by
Open-market to maintain its existing fed funds target rate : Suppose households and small firms withdrew funds from banks in response to rumours circulating that a computer virus would destroy banks customer account databases. What action would the Fed have to take in the open-market to maintain its existing f..
Treasury bills usually less than the federal funds rate : Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper. Why is the yield on shor..
If banks desire to increase their lending : If banks desire to increase their lending, but the Federal Reserve is not adding reserves to the banking system, what will happen to the level of short term interest rates? Explain your answer carefully.
Effects of massive treasury bill sale by fed in open market : Draw a supply-demand diagram of the Federal funds market which illustrates the effects of a massive Treasury bill sale by the Fed in the open market.
If producing a good or service creates pollution : If producing a good or service creates pollution, then

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the average fixed cost

What is the average fixed cost for the third unit of output and what is the average variable cost for the 5th unit of output?

  Te demand curve for a product is given by qdx 1200 - 3px

the demand curve for a product is given by qdx 1200 - 3px .01pz where pz 300.a. what is the own price elasticity of

  Determine the firm output and price

Under patent protection, a company has a monopoly in the production of a high tech component. Market demand is estimated to be: P = 100 - 0.2Q.

  Question 1 the world price for baseballs is 24 per dozen

question 1. the world price for baseballs is 24 per dozen and almost all of them are produced outside the u.s. suppose

  Describe how resource-based competitive advantage drives

competitive advantage implies the creation of a system that has a unique advantage over competitors. with the advent of

  Suppose that this month is good representation of all

to save on gasoline expenses edith and mathew agreed to carpool together for traveling to and from work. edith

  Write down a program by using visual basic prompt to user

you have been asked by the payroll department to create a program that will calculate the weekly pay for the companies

  Determine the market structure in which the low-calorie

determine the market structure in which the low-calorie food company operates.use the internet to research two 2 of the

  Determine the long-run marginal cost function

Determine the long-run marginal cost function for electricity generation and determine the short-run average variable cost and marginal cost at the output level in Part (d)

  Find the relationship between self-interest and social

a fundamental assumption for economic analysis is that economic agents be it an individual a household or a

  Various ways governments can handle externalities

Discuss the various ways governments can handle externalities, such as noise from a local airport or a barking dog or building of commercial office space or an industrial building in a residential area?

  1 banks are exposed to interest rate risk primarily

1. banks are exposed to interest rate risk primarily becausea interest rates are very difficult to forecast.b borrowers

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd