1. How do banks create new deposits by making loans, and what factors limit the amount of...
Question:
1. How do banks create new deposits by making loans, and what factors limit the amount of deposits and loans that they can create?
2. If the Fed makes an open market sale of $1 million of securities, who can buy the securities? What initial changes occur if the Fed sells to a bank?
3. If the Fed makes an open market sale of $1 million of securities, what is the process by which the quantity of money changes? What factors determine the change in the quantity of money?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 Banks can make loans when they have excess reserves When a bank makes a loan it creates a new depo...View the full answer
Answered By
Mary Boke
As an online tutor with over seven years of experience and a PhD in Education, I have had the opportunity to work with a wide range of students from diverse backgrounds. My experience in education has allowed me to develop a deep understanding of how students learn and the various approaches that can be used to facilitate their learning. I believe in creating a positive and inclusive learning environment that encourages students to ask questions and engage with the material. I work closely with my students to understand their individual learning styles, strengths, and challenges to tailor my approach accordingly. I also place a strong emphasis on building strong relationships with my students, which fosters trust and creates a supportive learning environment. Overall, my goal as an online tutor is to help students achieve their academic goals and develop a lifelong love of learning. I believe that education is a transformative experience that has the power to change lives, and I am committed to helping my students realize their full potential.
4+ Reviews
21+ Question Solved
Related Book For 
Question Posted:
