To reduce adverse selection when selecting a stock or bond to buy, individual sa

Question

To reduce adverse selection when selecting a stock or bond to buy, individual savers should examine a firm's past earnings. future projects. managers. I. II. III. I., IL, and III. To reduce moral hazard after buying a stock or bond, individual savers should monitor the firm's projects. visit the firm's offices. monitor the firm's expenditures. I. II. in. All of the answers are correct The Fed can increase the monetary base by using an open-market purchase. making a discount loan. making loans through its Term Auction Facility. I. II. 111. I., II., and III. The instrument the Fed uses most often to change the monetary base is printing money. discount loans. open-market operations. Term Auction Facility loans. Which of the following increase the money supply? a decrease in the monetary base an increase in the currency-deposit ratio an increase in the reserve-deposit ratio None of the answers are correct. Which of the following are counted among the sources of the monetary base? Government securities Foreign currency assets Treasury deposits all of the above An increase in which of the following produces an increase in the monetary base? Deposits of foreign agencies Treasury Cash holdings Treasury currency outstanding none of the above An increase in which of the following produces a decrease in the monetary base? Treasury cash holdings Treasury deposits Deposits of foreign agencies all of the above Suppose, in a given week, that other assets of the Fed increase $200 million and Treasury deposits at the Fed increase $500 million. The net effect on the monetary base is to: increase it by $700 million increase it by $300 million reduce it by $300 million reduce it by $700 million The existence of sweep accounts has: Reduced the demand for reserves by banks make the demand for reserves more inelastic Increases the volatility of the Fed funds rate making it more difficult for the fed to hit its fed funds target All of the above If the demand for reserves by banks increases, in order to maintain its fed funds rate target the Federal Reserve must_the supply of reserves through an_. Decrease, open market sale of bonds Decrease, open market purchase of bonds Increase, open market sale of bonds Increase, open market purchase of bonds Suppose that in a given week, DL increase by $500, Treasury deposits decreases by $300, Foreign deposits increases by $400, Float decreases by $100, and Government securities increases by $200. The net impact on the monetary base is to: increase it by $500 increase it by $700 decrease it by $300 decrease it by $100

Explanation / Answer

d

c

c

c

b

d

c

d

c

d

d

a

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.