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the mooney supply will go down because the feds do not make any money
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∙ 14y ago
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What are the three ways the fed can increase money supply?
Open market operations ( purchasing bonds), Discount rates ( lowering the interest rates) and Reserve requirement.
Decreasing the reserve requirement will?
will discourage aggregate demand.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
What is the current reserve requirement of bangko sentral ng pilipinas?
19%
What is a result of high reserve requirement?
Less money in the economy.
Which of these is a result of a low reserve requirement?
more bank lending and more money in the economy
What are the three ways the fed can increase money supply?
Open market operations ( purchasing bonds), Discount rates ( lowering the interest rates) and Reserve requirement.
What is the effect of lowering reserve-level rates?
By the lowering of the required reserve-level rate, banks can increase the proportion of funds they are able to lend to customers.
What is the purpose the reserve requirement?
It protects public deposits.
Decreasing the reserve requirement will?
will discourage aggregate demand.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
Why did the Members banks must leave this with the Fed?
Reserve requirement
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
In reference to federal reserve policy what are reserve requirement?
the percentage of a bank's total deposits that must be kept in its possession
The percentage of the bank's total deposit that it must keep in its own vaults is called the?
It is the reserve requierment
