Which can the fed accomplish by raising or lowering the required reserve ratio

Which of the following accurately describes how lowering the required reserve ratio increases the money supply?

Which accurately describes how lowering the required reserve ratio increases the money supply? When the required reserve ratio is lowered, banks can loan out more money. When the required reserve ratio is lowered, banks make less profit on money loaned out.

Which of the following best explains why the money supply is increased when the Fed buys T bonds?

Which best explains why the money supply is increased when the Fed buys T-bonds on the open market? The purchase of bonds reduces the available supply of bonds, which drives up bond prices. The purchase of bonds increases the amount of deposits in people’s bank accounts, which enables banks to loan more money.

Which involves the direct exchange of goods and services without the use of money?

In trade, barter (derived from baretor) is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.

Which accurately describes the requirements banks must meet?

Which accurately describes the requirements banks must meet under a fractional reserve banking system? Banks must get government approval for all loans. Banks reserve the right to raise interest rates at any time. Banks must pay a specific fraction of their assets in taxes.

Which most accurately explains why fiat money has value?

Fiat money has value because it allows people to barter for goods and services. Which of the following most accurately explains why commodity money has value? Commodity money must be a precious metal that people will value because of its beauty and usefulness.

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On which does technical analysis of a company’s stock focus?

Technical analysis is the study of historical market data, including price and volume. Using insights from market psychology, behavioral economics, and quantitative analysis, technical analysts aim to use past performance to predict future market behavior.

Which of the following most accurately describes what banks do with their excess reserves?

Which of the following most accurately describes what banks do with their excess reserves? Banks use excess reserves to make loans to customers so that they can make profits on the interest.

Which of the following actions is most likely to result in an increase in money supply?

The discount rate on overnight loans is lowered. Explanation: The action that is most likely results in an increase in the money supply is (C) which is the discount rate on overnight loans is lowered.

Why do banks retain a fractional reserve apex?

The regulation of the money supply through various tools of government action. … Money that has value only because it’s declared to have value. fractional reserve. The fraction of the bank’s customer deposits kept on hand — in reserve — to satisfy demands for withdrawals.

What is barter system with example?

The definition of barter is a system under which goods and services are exchanged instead of currency, or the actual goods or services that are being exchanged. … An example of barter is bread provided in exchange for butter.

What are the problems of barter system?

Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

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What replaced the barter system?

Barter System vs. Currency System: An Overview

The primary difference between barter and currency systems is that a currency system uses an agreed-upon form of paper or coin money as an exchange system rather than directly trading goods and services through bartering.

Which accurately describes the requirements banks must meet under a fractional reserve?

Which accurately describes the requirements banks must meet under a fractional reserve banking system? Banks must keep a specific percentage of deposits on hand. Banks must pay a specific fraction of their assets in taxes. Banks reserve the right to raise interest rates at any time.

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