a) 1067 HTicn dy 2902 NIion 4s. If the Fed warb to coenteract a recessice iRooul
ID: 1125112 • Letter: A
Question
a) 1067 HTicn dy 2902 NIion 4s. If the Fed warb to coenteract a recessice iRoould do so by al Selling povent secariies dy Raisng dhe discoore ate s0. h case of sevare deeond-pell in lution the Fod woudd Mocly choos o nike open na ket soles korverte reared reserve c) S1. The Fad's caFard Fads as a trget toe its racndtiry polkby c) Mi d) Free Reserves Use the felkrwing belance sheet o Firt Natkns lork to aswer questioes 52 and 53. The required reserve ratio is 10 Reserves $1,10000 Deund deposhs 1,250,000 Scurilies$75,000 5350,000 Sz0L00 Ceptal shck Property $225,000 2. Required reserves for thi comnmercial bank ae a) $12,508 b) $125.000 c) S110000 d) none of the abrve 3. The mximum amount of demund asposit noney that could be created in the banking system as a resuh of Fint Natloss Bank karing all of its escess reserves is a) $12,500000 b) $1,250,000 e) 5125,002,000 d) aone of the above 54. Credit cards stisfy all the fenctions of noney except a) mediann of exclange b) store of valse(wealthi c) unit of accoust 4) credin cards satisty all tdhe functions of mosey PageExplanation / Answer
49) The answer is C -) buying government securities.
because , In a recession, there is fall of aggregate demand in the economy and decrease in the money supply. thus to counteract the recession, the fed use monetary policy of open market operation in which he buying govenrment securities which enables to increase the money supply in the economy and result in decrease in interest rate which encourage new business and thus aggregate demand in the economy increases.
50.) please upload it again. it against chegg policy.
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