For each of the following scenarios, define the effects on the nominal interest rate if the Fed takes the following monetary policy actions a. The Fed lowers the discount rate and increases discount lending. Nominal interest rates will . b. The Fed increases the reserve requirement for commercial banks. Nominal interest rates will . c. The Fed conducts open market sales of government bonds to the public. Nominal interest rates will . d. The fed decreases the reserve requirement for commercial banks. Nominal interest rates will

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

The stock market is -the section of the newspaper where you learn how much a stock is worth -a place where you buy and sell stock -an organized way for people to buy and sell stocks -the same as a brokerage firm