![Business](/tpl/images/cats/ekonomika.png)
1. Suppose that commercial banks keep no excess reserves, and that as the money supply changes, people do not change the amount of cash in their pockets. The required reserve ratio is 0.25. The Federal Reserve System wishes to reduce the money supply by $800 million, through the use of open market operations. (a) What open-market operation will the Fed engage in? (b) Show how this operation will affect the balance sheet of the Fed. (c) Show how this operation will initially affect the balance sheet of a single commercial bank. (d) Trace the money contraction process through the balance sheets of two more commercial banks, carefully showing the change in the country’s money supply at each step. (e) Show the eventual consolidated balance sheet of the commercial banking system, resulting from this open market operation. (f) Suppose that as the money supply falls, people decide to hold less cash in their pockets. Explain why the reduction in the money supply will be greater or less than $800 million.
![answer](/tpl/images/cats/otvet.png)
Answers: 1
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 07:50, sis212
Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 23:00, shifaxoxoxo
What is the purpose of the us international trade association?
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
Business, 23.06.2019 12:00, cicilee49
Managers at flavors, a restaurant chain, train their employees such that in the absence of employees, someone trained in the same skills can step in and do the job equally well. thus, many modules in training are extensive as they provide employees with details of the skill sets required for different jobs. in practice, this lengthy training program does the company as a well-trained and flexible workforce is at their disposal at all times. the managers at flavors use a) job rotationb) vertical enhancementc) telecommutingd) job sharinge) flextime
Answers: 3
Do you know the correct answer?
1. Suppose that commercial banks keep no excess reserves, and that as the money supply changes, peop...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/en.png)
English, 12.07.2019 09:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 12.07.2019 09:50
![Konu](/tpl/images/cats/himiya.png)
Chemistry, 12.07.2019 09:50
![Konu](/tpl/images/cats/mir.png)
World Languages, 12.07.2019 09:50
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/istoriya.png)
History, 12.07.2019 09:50
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/en.png)
English, 12.07.2019 09:50