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Where is money sent after its made?
When money is minted, the first place it goes is the Federal Reserve. The Federal Reserve is like the ultimate lender. All banks get their money from the Federal Reserve.
What is the rank of a doctor in the military?
Usually you will start out as an O-1. you will progress quickly due to the fact the military knows that you can get out and make tons more money...
Who borrows money from federal reserve banks?
All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.
How much money does a computer programmer earn in the military?
Military personell get different pay depending upon there rank the type of service they are in such as National Guard....full time....Reserve, once that is established then one can find an answere.
Was the Reserve Fund the first money market mutual fund?
The Reserve Fund was the first money market mutual fund
Does income tax money go to the federal reserve?
Not all income tax goes to the Federal reserve but all money that goes to the Federal reserve comes from income tax.
Which of the following factors does not reduce the Federal Reserve's control of the money supply?
The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.
What was the Reserve Fund?
The Reserve Fund was the first money market mutual fund
Does the simple money multiplier decrease as the reserve ratio decreases?
No, the simple money multiplier actually increases as the reserve ratio decreases. The money multiplier is calculated as 1 divided by the reserve ratio (MM = 1 / reserve ratio). Therefore, when the reserve ratio is lower, the denominator is smaller, resulting in a higher multiplier effect, allowing banks to create more money through lending.
As reserve ratio increases the money multiplier is?
As the reserve ratio increases, the money multiplier decreases. This is because a higher reserve ratio means that banks must hold a larger fraction of deposits in reserve and can lend out less money. Consequently, the overall capacity of the banking system to create money through lending diminishes, leading to a lower money multiplier effect.
Who issues money?
Paper money is issued by the Federal Reserve.
If the Federal Reserve decreases the reserve rate from 5 to 2.5 how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank?
If the Federal Reserve decreases the reserve requirement from 5% to 2.5%, banks are required to hold less money in reserve and can lend out more of their deposits. This change effectively increases the money multiplier, allowing banks to create more money through lending. For example, with an initial deposit of $1,000, instead of only being able to lend out $950 (at 5% reserve), banks can now lend out $975 (at 2.5% reserve), leading to a greater overall increase in the money supply through fractional-reserve banking.
