Treasury bonds from a bond dealer

Assignment Help Business Economics
Reference no: EM13772613

The Federal Reserve purchases $1 million in U.S. Treasury bonds from a bond dealer, and the dealer's bank credits the dealer's account. The reserve ratio is 15 percent. Assuming that no currency leakage occurs, how much will the bank lend to its customers following the Fed's purchase?

Reference no: EM13772613

Questions Cloud

Recommendation pro-cyclical or counter-cyclical : What fiscal policy recommendations would you give considering the state of the economy today and in the future, the deficit, and the debt. Is your recommendation pro-cyclical or counter-cyclical? Explain your policy choices that you are making.
Transactions are covered by the ucc : What problems was the UCC designed to address? How would interstate transactions be different without the UCC? Provide an example.
Defination of electric water heater-artificial lighting-load : Directions: Read the terms listed below and provide a definition and an example, if applicable, in at least one complete sentence and in your own words. The answer sheet only needs to provide the responses.
Principles of restorative justice : What correctional policies can be created from the principles of restorative justice (based on indigenous justice principles)? Are these values more compatible with some offenses than others
Treasury bonds from a bond dealer : The Federal Reserve purchases $1 million in U.S. Treasury bonds from a bond dealer, and the dealer's bank credits the dealer's account. The reserve ratio is 15 percent. Assuming that no currency leakage occurs, how much will the bank lend to its cust..
Identify different compensation systems and provide the bene : 1.Identify different compensation systems and provide the benefits and disadvantages of each. 2.Define Comparable Worth and explain how companies attempt to compensate their employees based on such a concept and not violate any federal legislation.
What is the rate of return on the one year toyota bond : Toyota bonds are currently rated AA, and Ford bonds are rated BB, Suppose the price of 1,000 one year Toyota bond is 970$. What is the rate of return on the one year Toyota bond
How would you describe the mood of the poem : How would you describe the mood of the poem? What elements contribute to this mood? Is the title significant to the poem's content or meaning? How?
Analyze this using the amortization formula : Imagine you are in the market for a new car, and you found a dealer you trust. Among all the models on the lot, you found a great car. After all taxes and fees are included, the final cost of the car is $24,035. The dealership offers you 0% financing..

Reviews

Write a Review

Business Economics Questions & Answers

  Quantity supplied at the regulated price

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..

  ROR analysis of mutually exclusive service projects

When one is conducting an ROR analysis of mutually exclusive service projects

  Explain the shape of the long-run average cost curve

Your rich relative died and left you $100,000, which you decided to use for your own Internet business. What will be your fixed and variable costs? Briefly discuss.

  In looking at market structures we often see that monopolies

In looking at market structures we often see that monopolies are sole providers of a good or service. In looking at utility companies, why are they typically awarded the ability to be monopoly from government?

  Illustrate what means do they use to hedge against exchange

Illustrate what means do they use to hedge against exchange rate risk. Using this information.

  Explain how will a depreation of the rand influence

If the prices of gold and other commodities increases how will this influence the value of the rand. Explain how will a depreation of the rand influence our exports and imports.

  How do public goods and private goods compare

how do public goods and private goods compare? open a supply and demand curve. in whcih direction do the shift if they both decease?

  Q1 the short-run marginal cost of the ohio bag company is

q1. the short-run marginal cost of the ohio bag company is 2q. price is 100. the company operates in a competitive

  Elucidate how this can be possible in spite of the fact

Elucidate how this can be possible, in spite of the fact that the exchange itself creates nothing new the goods being traded are still the same as they were before being traded.

  Calculation for a price increase

Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both..

  Explain how much output is the frim producing

A firm employs 8 units of the variable resource. at this level of employment, average product is 2, and average variable cost is $4. Explain how much output is the frim producing.

  Qhow would you estimate the additional dollar cost of each

q.how would you estimate the additional dollar cost of each additional salesperson?based on your companys past sales

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