In 2008 the Fed reduced both the discount and federal fund rates dramatically. But bank loan volume
Question:
In 2008 the Fed reduced both the discount and federal fund rates dramatically. But bank loan volume didn’t increase. What considerations might have constrained the market’s response to Fed policy?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
Consumers and businesses take out loans with the anticipation that they will be a...View the full answer
Answered By
Payal Mittal
I specialize in finance and accounts.You can ask any question related to til undergradution.Organizational behaviour and HRM are my favourites for you can always relate to them and is an art with practical knowledge base.
4.90+
226+ Reviews
778+ Question Solved
Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
Question Posted:
Students also viewed these Business questions
-
In December 2008, the Fed reduced the federal funds rate to approximately zero. What should it have done then? Why? What did it actually do?
-
In the past, the Federal Reserve didnt pay interest on reserves kept in Federal Reserve banks: For an ordinary U.S. bank, money kept at the Fed earned zero interest, just like money stored in a vault...
-
In March 2008, the Fed helped prevent the bankruptcy of Bear Stearns. However, in September 2008, the Fed and the Treasury let Lehman Brothers go bankrupt. What accounts for the different decisions?
-
The accompanying table shows data from the World Bank, World Development Indicators, for real GDP per capita (2010 U.S. dollars) in France, Japan, the United Kingdom, and the United States in 1960...
-
Consider the data given in the table. (a) Make a scatter plot. (b) Fit a linear function to the data. (c) Try other function types and find one that fits better than a linear function. 10 20 30 15 25...
-
Violet Bick SA owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2017. The 2017 operating results for the company were...
-
When is a team effective?
-
Explain the relationship between the audit of owners' equity and the calculations of earnings per share. What are the main auditing considerations in verifying the earnings per share figure?
-
. An angle measure of (x + ) radians corresponds to an angle measure of 210. Find the value of x.
-
During 2020, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price Brokers Commission Paid at Time of Purchase 300 shares of IBM...
-
What is conflict?
-
What are the differences among the traditional, interactionist and managed conflict views of conflict?
-
Because options are zero-sum games, the writers payoffs are just the negatives of the sellers. Demonstrate the following (by algebraic arguments or by using numbers): a. The call sellers payoff at...
-
1. Find (f -1 )'(2) for each question. a) f(x) = 6x-4 b) f(1)=2 and f'(1)=(1/3) c) f(x)=x/((3-x)). Use f(4)=2.
-
(Acceleration) A fluid flows steadily along the streamline as shown in the figure below. (a) Determine the acceleration at point A. (b) At point A what is the angle between the acceleration and the x...
-
Childcare Learning Story (age group 0-1 yr and 6 months) Lee learning Story of Sep Part 1 The cycle of planning: 1. Observe 2. Analyse 3. Document 4. Plan 5. Implement 6. Reflect Child's Learning...
-
Exercise 2 Parts A and B Exercise 2: Developing and demonstrating Critical Thinking and Critical Reading through assessing a piece of writing supplied by another source. Writing items might be...
-
2. The temperature distribution has to be determined in the triangle shown below. Which two-dimensional conduction problem can be solved to obtain the answer. T=100 C T=0 Insulated
-
Find the energy needed to flip the spin state of a proton in Earths magnetic field, whose magnitude is about 30 T.
-
A copper rod of length L =18.0 in is to be twisted by torques T (see figure) until the angle of rotation between the ends of the rod is 3.08. (a) If the allowable shear strain in the copper is 0.0006...
-
Find the APR in each of the following cases: NUMBER OF TIMES COMPOUNDED Semiannually Monthly Weekly Infinite EAR APR 10.4% 8.9 11.6 15.4
-
First National Bank charges 15.7 percent compounded monthly on its business loans. First United Bank charges 16.2 percent compounded semiannually. As a potential borrower, which bank would you go to...
-
One of your customers is delinquent on his accounts payable balance. Youve mutually agreed to a repayment schedule of $450 per month. You will charge 1.3 percent per month interest on the overdue...
-
Analysis: For the Thomas Family: assume that they could afford to make the same extra payment as the Jeffersons, but instead they decide to put that money (#2a. from Procedures above) into a savings...
-
Garrett Boone, Flint Enterprises' vice president of operations, needs to replace an automatic lathe on the production line. The model he is considering has a sales price of $277,335 and will last for...
-
REcorded sales of product and separately sold service-type warrantiesA) Do assets increase, decrease, or is there no effect?B) Do Liabilities increase, decrease, or is there no effect?C) Do...
Study smarter with the SolutionInn App