0
What would happen if the U.S. Federal Reserve Bank were to increase the legal reserve ratio?
Wiki User
∙ 14y ago
You would expect higer interest rates, a contracted GDP and depreciation of the dollar
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is the relationship between the board of governors of the federal reserve system and the 12 federal reserve banks?
federal reserve us when government failed to prevent the collapse of the bantina system doesn't seem to be a "bantina" system. Could we be talking "Banking" system? How do your typos happen?
What would most likely happen if the federal reserve system lowered interest rates?
Unemployment would be reduced in the short run.
What will happen when the Federal Reserve buys bonds from the public in the open market and cash in the hands of the public does not change?
the deposits of commerical banks will decline
If the Federal Reserve increases the reserve requirement and velocity remains stable What will happen to nominal GDP and why?
A significant increase in reserve requirements will reduce the lending of member banks resulting in a relatively smaller supply of M2 money. Money can bought and sold repeatedly by each stock speculator throughout the day. Just look at the volume netted and cleared by stock speculators on a daily basis. Therefore velocity has no obvious unambiguous meaning outside of something like nominal GDP divided by money supply. Therefore by this definition a decrease in money supply must be countered with a decrease in GDP to keep velocity stable.
Who owns the banks?
The Federal Reserve is the central banking system of the United States. It was created in the year 1913. Ben Bernanke is the chairman of the Federal Reserve. He has been the chairman since 2006. Before him, Alan Greenspan was the chairman of the Federal Reserve. The Government of the United States owns the Federal Reserve.
What would most likely happen if the federal reserve decided to increase the reserve requirements in banks?
If the Federal Reserve decided to increase the reserve requirement in banks, it is likely that banks would be targeted more often for robbery. This would be because there would be more money in every federally-insured bank.
What is the relationship between the board of governors of the federal reserve system and the 12 federal reserve banks?
federal reserve us when government failed to prevent the collapse of the bantina system doesn't seem to be a "bantina" system. Could we be talking "Banking" system? How do your typos happen?
What happen to cash money?
The money will be absorbed by the Federal Reserve into its cash reserves
What will happen with TARP money when it's paid back?
The money will be absorbed by the Federal Reserve into its cash reserves.
What would most likely happen if the federal reserve system lowered interest rates?
Unemployment would be reduced in the short run.
What will happen when the Federal Reserve buys bonds from the public in the open market and cash in the hands of the public does not change?
the deposits of commerical banks will decline
What needs to happen to rectify the money cycle?
The Country MUST produce it's own currency The USA only gets money through a central European bank know as the federal reserve. The Federal Reserve Borrowes all money to the country at intrest paid off through federal taxes and reborrowed at intrest for schools roads bridges ect.
When did the sewage backup on the attawapiskat reserve happen?
Late April, 2013
What happened in banking in 1914?
In banking, a lot of things happened around the world. One noteworthy thing to happen in the United States was the creation of the Federal Reserve System.
What would happen if fuel runs out on a plane?
I am pretty sure they have a reserve fuel tank.
If the Federal Reserve increases the reserve requirement and velocity remains stable What will happen to nominal GDP and why?
A significant increase in reserve requirements will reduce the lending of member banks resulting in a relatively smaller supply of M2 money. Money can bought and sold repeatedly by each stock speculator throughout the day. Just look at the volume netted and cleared by stock speculators on a daily basis. Therefore velocity has no obvious unambiguous meaning outside of something like nominal GDP divided by money supply. Therefore by this definition a decrease in money supply must be countered with a decrease in GDP to keep velocity stable.
What is suspended reserve in the nfl?
Suspended Reserve is just simple when a player gets suspended for breaking a league rule and is not allowed to play for a certain number of games. This can happen for anything from fighting to using illegal substances.
