Macroeconomic: Money, Banking and Monetary Policy

Question # 00075392 Posted By: lama Updated on: 06/12/2015 12:01 AM Due on: 06/11/2015
Subject Economics Topic Macroeconomics Tutorials:
Question
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1. Would the maximumloan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not.

2.If the required reserve ratio is 100 percent, could the Federal Reserve still change the money supply with open marketoperations? Explain whether they could or could not.

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