The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the ___(discount rate / required reserve ratio___. The Fed can ___(increase / decrease)___ the money supply by lowering this rate.

Answers

Answer 1

Answer:

The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the ___discount rate___. The Fed can ___increase___ the money supply by lowering this rate.

Explanation:

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional FED office. A tool that the Federal Reserve Bank (the Fed) has at its disposal to change the money supply is manipulation of the discount rate. The Fed loans to member banks through the discount window. The interest rate charged on these loans is known as the discount rate.

If interest charge on loan decreases than it will be cheaper for banks to borrow from FED and lent it to customers. So money supply will increase The Fed can encourage borrowing by lowering the discount rate it charges banks. When a bank takes a loan from the discount window, the amount of reserves in the banking system increases. This fuels money expansion and increases the money supply.


Related Questions

Read the definition. Then choose the vocabulary term defined.
a deceased person recognized by the Christian religion as especially pious and virtuous
A heretic
inquisitor
maid
saint

Answers

The answer is saint

Answer:

Saint

Explanation:

A saint is one who lived a life in Christ's grace and performs miracles to those who pray through him or her.

Which of the following is NOT
synonymous with "Federal Funds
Rate"?
A. Interest rate
B. Inflation rate
C. Discount rate
D. Prime rate

Answers

Answer:

The answer is D, Prime rate. The overnight rate of the federal funds are the basis of the prime rate, and the prime the beginning point for the majority of other interest rates.

Explanation:

What will be the time in Japan located at 132°E longitude when its 2 pm in Nepal located at 85°E longitude?​

Answers

Answer:

5.p.m

Explanation:

The answer is 17.00 (or 5 p.m.). A circle has 360 degrees. A day has 24 hours. This means that between every hour there are 360/24 = 15 degrees.

13,000 mile railroad tracks did the union or Confederate have the overall advantages and why??
Soilders defending their own homes and family

Answers

Answer:

Confederates had small advantages because they were close to home which meant they had quick access to supplies and familiarity of the battlegrounds. BUT OVERALL the industrialized Union possessed an enormous advantage over the Confederacy — they had 20,000 miles of railroad track, more than double the Confederacy’s 9,000 miles. Troops and supplies that were previously dependent on man or horse power could now move easily by rail, making railroads attractive military targets. The Union controlled 70% of the country’s total miles of track and owned 96% of U.S. railroad equipment, which meant it was ideally prepared for damage replacement when bridges, rail rights-of-way or rolling stock were destroyed. This strength was an early indicator of rail’s ability to shape future military strategy.

Explanation:

Hope this helped! Brainiest please if it did

Select the statement that best defines required reserves.

The amount banks are required by law to hold on each mortgage.

The amount of reserves a bank must keep on deposit at the Fed or in their vault on a given deposit.

The amount of reserves a bank has below the required amount.

The amount of reserves banks have on hand to handle litigation.

Answers

The amount of reserves a bank must keep on deposit at the Fed or in the vault on a given deposit

Required reserves are the proportion of all deposits that a bank must hold on deposit with the Fed, or in its vault. Its proportion is called the required reverse ratio and is determined by the Fed. If the required reserve ratio is 10%, this means that for every $1 deposited in the bank, the bank is required to hold back $0.10 of that deposit. Required reserves cannot be loaned out or otherwise invested.

Which branch of the US military was critical to winning the Battle of Iwo Jima?


the US Army

the US Navy

the US Air Force

the US Marine Corps
Please hurry, 30 minutes left!

Answers

Answer:

The US Marine COrps

Explanation:

Battle for Iwo Jima "The battle of Iwo Island has been won. The United States Marines by their individual and collective courage have conquered a base which is as necessary to us in our continuing forward movement toward final victory as it was vital to the enemy in staving off ultimate defeat.

Can someone help me with this?​

Answers

Answer:

1. First Johannes Gutenberg cast...

2. He brushed black....

3. When the metal letters...

4. Then Johannes placed...

5. Then he took...

6. When he peeled...

7. To print a different...

OR

5

3

7

4

2

1

6

BRAINLIEST please if this helped!

Why did the Enlightenment thinkers challenge their position of power?

Answers

Answer:

The Enlightenment brought political modernization to the west, in terms of focusing on democratic values and institutions and the creation of modern, liberal democracies. Enlightenment thinkers sought to curtail the political power of organized religion, and thereby prevent another age of intolerant religious war.

Explanation:

Because they wanted the hole power for them

how do mountains influence the climate of an area​

Answers

Answer:

The temperature on the mountain becomes colder the higher up you go.

Explanation:

Mountains tend to have wetter climates than the flat land surrounding them

What was the name given to people looking for new land in western North America

Answers

Answer:

slaves

Explanation:

Answer: pioneers

Explanation:

The equation of exchange, M×V=P×Q , relates to the quantity theory of money. In this equation, M represents the supply of money, V represents the velocity of money, P represents the price level, and Q is real output.
Which of the statements describes an implication of this equation in the long run?

Money supply increases (ΔM) will directly increase real GDP.

Changes in the money supply (ΔM) will balance out with changes in prices (ΔP) .

Changes in the money supply (ΔM) will balance out with changes in velocity (ΔV) .

Both money supply (M) and money velocity (V) are held constant.

Answers

Changes in the money supply (ΔM) will balance out with changes in prices (ΔP)

The classical viewpoint of the quantity theory of money is that in the long run, assuming full employment, money velocity in real output are fixed. As these are on either side of the equation, the key inside of the quantity theory of money is that any increases or decreases in the supply of money on the left hand side of the equation will balance out with changes in prices on the right hand side of the equation. That is, in the long run, increasing the money supply causes inflation.

Question 40 (3 points)
Paddy and Mick are the only two inhabitants of a small island off the coast of Ireland.
They burn coal to keep their houses warm at night. However, this coal burning is
harming the air quality on their island. Both Paddy and Mick could install air filters on
their chimneys. These filters cost 50 each. Each filter provides a social benefit of 80,
but those benefits are divided equally among Paddy and Mick. If both Paddy and

Answers

Each filter provides a social benefit of 80 therefore if divided equally among Paddy and Mick will see them attain a 30% gain each. This is further explained below.

What is Global warming?

Generally, Global warming is simply defined as the heating of the Earth's globe seen since the pre-industrial period which raises heat greenhouse gas levels on the Earth.

In conclusion, the benefits if divided equally among Paddy and Mick will see them attain a 30% gain each.

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Match the statements with the appropriate definition. Not all statements will be used.

1. Money is best defined as
a. whatever serves society in three functions: medium of exchange, store of value, and unit of account.
b. whatever the government allows money to be.
c. paper bills and coins.

2. Barter is best defined as
a. an informal market such as a flea market.
b. literally trading one good for another without using money.
c. a situation where two individuals each want some or service that the other can provide.

3. A double coincidence of wants is:
a. a situation where two individuals each want some or service that the other can provide.
b. a situation in which money is used to facilitate economic transactions.
c. literally trading one good for another without using money.

Answers

Answer:

Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account.

Barter is best defined as literally trading one good for another without using money.

A double coincidence of wants is a situation where two individuals each want some or service that the other can provide.

Explanation:

Barter is trading one good for another without the use of money. Barter is the system where two or more parties directly exchange their goods and service between each other without the use of money.

A double coincidence of wants is a situation in which two individuals each want some good or service that the other can provide. In a barter system, the only trades that people make are those that satisfy this condition. Double coincidence is a system where two individual meet and swap their goods in exchange for others goods.

Money is whatever serves society in three functions: medium of exchange, store of value, and unit of account. As medium of exchange means that can be used to buy anything, store of value means that can be store for future purpose, unit of account as there are numerical unit of money.

what is government instability

Answers

Answer:

important feature of a government democrecy

Explanation:

serched it up

How do traditional models of global stratification breakdown
different categories of countries?
They analyze the degree of industrialization.
They use measures to assess the economic power each nation.
They evaluate cultural norms and social goals.
They measure social mobility between classes.

Answers

Answer:

C. Global stratification examines a myriad of different types of prejudice and inequality, while social stratification covers the social class and standing of individuals.

Explanation:

Traditional models of global stratification breakdown different categories of countries as they use measures to assess the economic power each nation. (B)

What is traditional?

Traditional is produced, done, or used in accordance with tradition.

What is stratification?

Stratification is the arrangement or classification of something into different groups.

What is economic power?

Economic power is one nation's GDP per capita.

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What is the term given to a political party’s statement of principles?

Answers

Answer:

Platform.

Explanation:

"The term is Platform because it is a political party's formal statement of basic principles, stands on major issues, and objectives."

Who won the Battle of Shiloh?

Answers

Answer: united states

Explanation: The combat. The dawn of April 6, witnessed a surprise attack in the Shiloh church region by the Confederates under the leadership of General Albert Sydney Johnston.

The Senate ratifying a treaty negotiated by the president is an example of which function of Congress?

Answers

Answer:

Senate treaty ratification power is an important check on the President. Unlike a monarchy, the President cannot unilaterally enter into international agreements. See who approves treaties and why. Who Approves Treaties and Why?

Explanation:

TREATIES, NEGOTIATION AND RATIFICATION OF TREATIES, NEGOTIATION AND RATIFICATION OF. A treaty is a formal agreement signed by one or more countries. Article II, Section 2, of the Constitution gives the president the "Power, by and with the Advice and consent of the Senate, to make Treaties, provided two thirds of the Senators present concur."

This was why the president would have sole authority to negotiate and draft treaties, but would require the approval of the Senate for them to become effective. There was little danger of the Senate becoming corrupted by either the president or by a foreign power in its treaty-approval function. Who approves treaties?

The Senate ratifying a treaty negotiated by the president is an example of 1st Congress function.

What is Ratification?

Ratification involves given and approval of a document or statement.

The first congress are in charge of ratification and they also check for errors and mistakes in ratification.

Therefore, the Senate ratifying a treaty negotiated by the president is an example of 1st Congress function.

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Compare and contrast the rights and protections of the US Constitution with the AZ Constitution.

Answers

Answer:

The Constitution of Arizona will seem both familiar and alien to those who have only read the Constitution of the United States. The state text contains many similar features: two legislative chambers, separation of powers, and a Bill of Rights — or, to be more precise, a Declaration of Rights.

Explanation:

From a systems dynamics perspective, explain how regulation acts on the Tragedy of the Commons archetype?

Answers

Answer:

do u still need help with this one

The five themes of geography include location, place, movement, region, and

Answers

Relationships within places (human-environmental interaction)

Identify the types of breezes and the areas of high and low pressure that cause them.

Answers

refer to the image here

Hello! Miko is here to help!

Asnwer is: I dont know sorry just need to answer something pls forgive me

Classify each example as commodity money or fiat money.
- salt
- copper
- cattle
- Mexican pesos
- Bitcoin

Answers

Answer:

Commodity money
- salt
- copper
- cattle

Fiat money
- Bitcoin
- Mexican pesos

Explanation:

Fiat money, unlike commodity money, has no other use except as a medium of exchange. Bitcoins and Mexican pesos are only valuable because people will accept them as currency. Since fiat money is easier to reproduce in large quantities than precious metals or animals, it is more prone to both counterfeiting and overproduction.

Commodity money is a good used as money that also has intrinsic value independent of its use as money. A famous example is the use of cigarettes as money in prisoner‑of‑war camps. Copper can be used in industrial applications as well as for money. Cattle and salt historically have been valuable items in and of themselves.

M1 and M2 are two definitions of the money supply. Determine whether the items listed are included in the money supply under each of these definitions.

a. Common stock is part of _______________.
b. Money market account balances are part of _______________.
c. Balances in savings accounts are part of _______________.
d. Balances on checking accounts are part of _______________.
e. Certificates of deposit are part of _______________.
f. Currency is part of _______________.
g. Credit cards are part of _______________.
h. Gold is part of _______________.

WORD BANK:
- M1 only.
- both M1 and M2.
- M2 only.
- neither M1 or M2.

Answers

Answer:

a. Common stock is part of neither M1 or M2.

b. Money market account balances are part of M2 only.

c. Balances in savings accounts are part of M2 only.

d. Balances on checking accounts are part of both M1 or M2.

e. Certificates of deposit are part of M2 only.

f. Currency is part of both M1 or M2.

g. Credit cards are part of neither M1 or M2.

h. Gold is part of neither M1 or M2.

Explanation:

M1 is the narrower of the two definitions and includes only the most liquid types of money such as currency, traveler's checks, and balances in checking accounts. M1 is physical money supply that includes cash, coins, demand deposits, etc. It is also know as liquidity.

M2 includes all M1 plus near money such as savings deposit, money mutual fund and other time depositthat are less liquid and not easily transferrable to physical money. M2 is a broader definition. M2 includes M1, certificates of deposit, money market account balances, and savings account balances.

Classify the actions as either discretionary spending or an automatic stabilizer.

a. Economic growth increases personal and corporate income, increasing tax payments.
b. A bill is passed to increase unemployment benefit payments.
c. Government spending on welfare increases due to an increase in applicants.
d. Congress votes to cut government spending in order to balance the budget.
e. A law is enacted that increases Medicare coverage.
f. The government cuts taxes to stimulate consumer spending.
g. The government increases tax rates to prevent inflation.
h. Tax revenue falls as a result of a recession reducing personal income and corporate profits.
i. An increased number of layoffs increases government spending on unemployment benefits.

WORD BANK
Automatic stabilizer
Discretionary spending

Answers

Answer:

a. Automatic stabilizers

b. Discretionary spending

c. Automatic stabilizers

d. Discretionary spending

e. Discretionary spending

f. Discretionary spending

g. Discretionary spending

h. Automatic stabilizers

i. Automatic stabilizers

Explanation:

a. A bill to increase unemployment benefits is discretionary spending because the government has to make a decision to change something; it does not happen automatically as the economy changes.

b. Cuts in government spending to balance the budget are also a decision that is made that does not happen automatically.

c. A law to increase Medicare coverage does not happen automatically and requires action by the government.

d. Tax cuts to stimulate spending must be written into effect. Since the tax rate is set and does not change by itself, it is discretionary spending.

e. Increasing tax rates also does not happen by itself and must be changed by the government, making it discretionary spending as well.

f. Increased tax payments from economic growth is an automatic stabilizer. As the economy grows, people have more income and firms have more profits. Both therefore pay more in taxes, increasing tax payments automatically.

g. More spending on welfare due to more applicants is an automatic stabilizer too. As more people apply for and receive welfare due to a bad economy, government spending will automatically increase.

h. Tax revenue depends on the level of economic activity. When people are laid off or earn less during a recession, tax revenue falls. Likewise, a decrease in corporate profits automatically decreases taxes owed.

i. More spending on unemployment benefits due to increased layoffs is automatic because when more people are laid off and apply for unemployment benefits, spending automatically increases.

sample budget for a 25-30 year old business professional

Answers

Answer:

Salary Income $2515

Rent expense -$900

Food and groceries -$250

Entertainment expense -$85

Shopping -$45

Birthday Party gift -$12

Transportation expense -$150

Home maintenance cost -$320

Tuition cost -$121

Net savings = $632

Explanation:

The mid aged person who is age of 25 to 30 will have different expenses. He will have to budget his monthly income and routine expenses to identify the savings. The sample budget will include different types of household expenses that a person incurs to live. He might have to budget one off expenses such as party cost, gifts etc. He will have to keep track of groceries and food expenses.

Explanation:

is a piece of wood considered an organism at one time?

Answers

Answer:

A piece of wood is not alive, because once it becomes separate from the tree it cannot use the energy from the sunlight to grow. Therefore a piece of wood cannot be an organism and it never was an organism.

Explanation:

Hope this helps:)...if not then sorry for wasting your time and may God bless you:)

define the term Gender based violence​

Answers

Answer

any type of violance against a persons gender or affects a persons gender disproportionately.

Explanation:

Use the passage to answer the question.

“The dreadful famine that engulfed Ukraine, the northern Caucasus, and the lower Volga River area in 1932–1933 was the result of Joseph Stalin’s policy of forced collectivization. The heaviest losses occurred in Ukraine, which had been the most productive agricultural area of the Soviet Union.” —Library of Congress

Which action of the Soviet government resulted in the event described in this quote?

It sent most of the peasants to forced labor camps.

It embarked on a campaign to exterminate the poor.

It seized all the grain to meet industrial goals.

It exported all the grain to fund the Comintern.

Answers

C, it seized all the grain to meet industrial goals

what is one limitation of the ethnographic method?

Answers

Answer:

Ethnographic research has several disadvantages to consider as well. Ethnography is time consuming and requires a well-trained researcher. It takes time to build trust with informants in order to facilitate full and honest discourse. Short-term studies are at a particular disadvantage in this regard.

Explanation:

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