If the fed lends five banks an additional total of $100 million but depositors withdraw $50 million and hold it as currency, what happens to reserves and the monetary base? use t-accounts to explain your answer.

Answers

Answer 1

Answer:

Answer:

The five banks' reserves will increase by $50 million, while the monetary base will increase by $100 million ($50 million in banks and $50 million out with the clients)

Explanation:

The five banks:

assets liabilities

reserves +$100 million Fed's loan +$100 million

reserves -$50 million clients' deposits -$50 million

net effect

reserves +$50 million Fed's loan +$100 million

clients' deposits -$50 million

The Fed:

assets liabilities

loans to 5 banks reserves in banks +$50 million

+$100 million

currency +$50 million

net effect

loans +$100 million reserves +$50 million

currency +$50 million

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What are the main similarities and differences between QE in Australia, in the UK, in Japan; in the Eurozone; and in the USA.(comparing to Australia)

Answers

The main similarities between QE in Australia, the UK, Japan, the Eurozone, and the USA are that they all involve central banks purchasing government bonds or other assets to inject money into the economy. This is done to stimulate economic activity, increase liquidity, and support financial markets.

However, there are also some differences in the implementation and scale of QE among these countries. For example, the specific assets purchased, the timing and duration of the programs, and the overall size of the QE programs can vary. Additionally, the specific goals and objectives of QE may differ slightly depending on the economic conditions and policy priorities of each country.

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Increased interest in cultural diversity can be attributed to all of the following except __________.a. personal travel
b. advances in communication
c. natural selection
d. international trade

Answers

The answer Is Natural Selection.

Increased interests in cultural diversity can be attributed to personal travel, advances in communication and international trade, except natural selection. Cultural diversity refers to having a respect to different cultures and natural selections is not part of this.

If the homeowner does not pay his property tax, the tax authority may

Answers

If the homeowner does not pay his tax, the tax authority may put a tax lien in the property of the homeowner. The government can then sell the tax lien to the investors, the investors then will be the one who will collect the debts of the homeowner with interests.

In the circular flow of the US economy, what does government provide to households? A. Services and payments B. Taxes and resources C. Resources and payments D. Services and income

Answers

Answer:

The correct answer is the option A: Services and payments.

Explanation:

The Circular Flow of Income is a graphic model of the economy in which the most important exchanges are represented by money, goods and services between economic agents. Those agents commonly are the househols, the firms, the government, the financial market and the oversas sector, that is in a five sector model.

In addition, there are five different types of models for the circular flow of income. In a three type model, one in which the sectors are the households, the firms and the government, the flows from households and firms to government are in the form of taxes, then the income that the government receives from the other sectors flows back to them in the form of purchases, subsidies and transfers of goods and services.

Answer:

In the circular flow of the US economy, the government provides services and payments to households.

Explanation:

TRUE or FALSE. A treasury bill must be 13 weeks.

Answers

It is split into 4 sections.

4-Week Bill

13-Week Bill

26-Week Bill

52-Week Bill

I hope this helped :)

its true it is supposed to be in 13 weeks

Bob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 100. Furthermore, suppose the price of a unit of food is $1.00 and the price of a unit of housing is $2.00. Can Bob increase his utility without changing his total expenditures on food and housing? Holding expenditures constant,A. Bob can increase utility by spending more on food and the same amount on housing.
B. Bob cannot increase his utility
C. Bob can increase utility by spending more on food and less on housing.
D. Bob can increase utility by spending more on food and more on housing.
E. Bob can increase utility by spending less on food and more on housing.