Explain why the Federal Reserve has more control over the monetary base when it uses open market
Question:
Explain why the Federal Reserve has more control over the monetary base when it uses open market operations than when it uses discount window lending.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (16 reviews)
This is because the Fed can complete...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Money, Banking, Financial Markets and Institutions
ISBN: 978-0538748575
1st edition
Authors: Michael Brandl
Question Posted:
Students also viewed these Business questions
-
Which of the following are included in the monetary base? a. Coins in circulation b. Currency in circulation c. Bank reserves d. All of the above
-
You hold a portfolio of bonds. You read in the financial press that market interest rates have increased. Holding everything else constant, what has just happened to the duration of your bond...
-
Assume you are going to buy a 90-day Treasury bill with a face value of $1,000 for a price of $944. Calculate the DRY, or discount rate yield. Also calculate the IRY, or investment return yield.
-
What is the "presentation of self" and why is it important when we are looking at social interaction? explain
-
If x and y are nonzero vectors in Rn and the vector projection of x onto y is equal to the vector projection of y onto x, then x and y are linearly dependent.
-
State the dimension of each matrix. [ -4
-
Developing performance standards is the process of diagnosing present and future challenges which the hospitality operation may face so as to ensure that training objectives meet desired outcomes. A....
-
The following transactions occurred for Ward Technology Solutions: May 1 The business received cash of $ 75,000 and issued common stock to Zoe Ward. 2 Purchased office supplies on account, $ 500. 4...
-
One potential way of increasing the ability of arbitrageurs to correct market inefficiencies might involve restrictions on the movement of investors money. For example, there are some investment...
-
The triplets are now three and a half years old, and Jamie Lee and Ross, both 38, are finally beginning to settle down in to a regular routine now that their children are a little more...
-
Explain how the Federal Reserves conduct of an expansionary open market operation affects the monetary base.
-
If bank depositors hold more cash and fewer deposits, the monetary base does not change, only the composition of it does. Explain why.
-
Calculate the total percentage change in real weekly earnings (excluding benefits) from 2000 to 2005 using the last column of Table 2. Compare your answer to the answer in problem 3. Which is the...
-
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the...
-
2. Define management.3) Describe who managers are and where they work.4) Describe what managers do.5) Describe the factors that are reshaping and redefiningmanagement.6) Explain what the external...
-
E 1 0 . 1 9 ( LO 3 ) ( Depletion Computations - Timber ) Stanislaw Timber Company owns 9 , 0 0 0 acres of timberland purchased in 2 0 1 4 at a cost of $ 1 , 4 0 0 per acre. At the time of purchase,...
-
Question 01 You were hired as an engineer to evaluate some soil characteristics and conditions to which it is subjected. To do this, you obtained the information presented in the stratified soil...
-
1 According to Strudler, the reason lying is worse than misleading is thatl ying damages trust whereas misleading does not damage any trust. According to Strudler, the reason lying is worse than...
-
Use the method of Lagrange multipliers in Problem. Minimize f(x, y, z) = x 2 + 4y 2 + 2z 2 subject to x + 2y + z = 10
-
A crop-dusting plane flies over a level field at a height of 25 ft. If the dust leaves the plane through a 30 angle and hits the ground after the plane travels 75 ft, how wide a strip is dusted? See...
-
If a country wants to keep its exchange rate from changing, it must give up some control over its monetary policy. Is this statement true, false, or uncertain? Explain your answer.
-
What are the advantages and disadvantages of currency boards and dollarization over a monetary policy that uses only an exchange-rate target?
-
Go to the St. Louis Federal Reserve FRED database, and find data on net exports (NETEXP), transfers, (A123RC1Q027SBEA) and the current account balance (NETFI). a. Calculate net investment income for...
-
Question 3 (24 marks) Wonderful Technology Company Limited sells computers and accessories. Data of the store's operations are as follow: Sales are budgeted at $400,000 for December 2019, $420,000...
-
Kratz Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates: Activity Cost Driver Cost...
-
You are a Partner with Fix-It Consultants and have been engaged in an advisory capacity with a software company, called MoveFast. The company is seeing a sharp decline in revenue, with the primary...
Study smarter with the SolutionInn App