Inflation is skyrocketing, and prices are out of control. What are banks most likely to ask the Federal Reserve to do with regards to government bonds and reserve requirements? Be sure to explain why.

Answers

Answer 1
Answer: If inflation is running high, the Fed will raise interest rates, sell bonds on the open market, and raise the reserve ratio (if it comes to that. It rarelyever does). Raising interest rates makes money "more rare". Selling bonds decreases the reserves of banks, which decreases their lending capabilities (again, making money more rare). The reserve ration is the "nuclear option" of monetary policy. I hope this would help 
Answer 2
Answer:

Answer:

The banks are most likely to ask the Fed’s to raise interest rates, sell bonds on the open market, and raise the reserve ratio in order to decrease inflation. So, there will be less money in the hands of the people and less spending, over all.

Explanation:


Related Questions

Christine manages a car wash. The owner of the car wash thinks they could be making bigger profits. Christine looks for ways to cut costs and increase profits. To solve this problem, Christine should _____. create a spreadsheet to track costs for the past month create a spreadsheet with current costs and use it to generate ideas about cutting costs create a balance sheet create a scatter graph
Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:_____.a. was able to fund his project through venture capital.b. received money for his venture from angel investors.c. received money for his venture through crowdfunding.d. was able to fund his project through seed money.
Employees who record and are paid for the exact of amount of time spent working are paid on a(n) _____ basis.
If an individual has a balance on her credit card, but would like to pay less money in the long run, she should _____. make the minimum payment every month talk with her credit card company about removing her annual fee pay as much as possible each month close her account and transfer her balance to a different credit card
On April​ 1, 2019, Barnes Services received a​ 9-month note for​ $12,000 at​ 12%. Calculate the amount of interest due at maturity.​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

Are organizations, such as mutual funds, insurance companies, or person funds, that pool contributions from a large number of investors, clients, or depositors to buy stock and other securities.

Answers

the organization that pool contribution from a large number of investors is commonly called as : Institutional investor
One of the best benefit of opening an investment institution of your own is that you can place your investment with no risk at all (since it's not your money, the clients will take all the risk)

hope this helps

Which of the following is the best definition of a bit?A. A measure of computer graphics and sound

B. A physical signal that becomes a digital signal

C. single 1 or 0 in a digital signal

D. An electrical signal in a wire

Answers

A measure of computer graphics and sound is the best definition of a bit.

Which of the following is the best definition of bit?

A bit (binary digit) is the smallest unit of statistics that a laptop can system and keep. A bit is always in one in all two bodily states, just like an on/off light transfer. The state is represented by a single binary price, typically a zero or 1.

Which of the subsequent is the best definition of a modern-day laptop?

A pc is a device or tool that plays techniques, calculations, and operations based totally on commands furnished with the aid of a software or hardware program. It has the ability to simply accept facts (input), manner it, after which produce outputs.

Learn more about computer graphics here: brainly.com/question/17506968

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Answer: A single 1 or 0 in a digital signal

When Corinne asked why she didn't get the job, the manager replied, "I needed someone who understood basic accounting practices and you do not." Which aspect of career readiness for this job did the manager feel Corinne was lacking?

Answers

Answer:

The aspect of career readiness the manager feel Corinne was lacking was Knowledge

Explanation:

Career readiness is the preparation and process of acquiring skills, knowledge, talents that are required to start a career, maintain one's position in such career and grow.

The aspect of career readiness the manager feel Corinne was lacking was Knowledge because see made a statement that implied that Corinne lack basic understanding of accounting practice.    

Knowledge  is an aspect of career readiness that has to do with the theoretical or practical  understanding of a subject matter. It is the information, skills and facts gained through experience and education.

Other skills that are acquired in the process of career readiness are communication skills, human relation skills, critical thinking skills etc.

Specialized savings accounts are accounts that _____.Select the best answer from the choices provided.

families use to pool their money to make special purchases

use special methods to help people save money

people use to get large discounts at specific stores

are designed to give banks more money to work with

Answers

Use special methods to help people save money :)

: Graves Construction is journalizing two transactions related to uncollectible accounts. The first transaction does not affect cash flows, but the second transaction does affect cash flows. If Graves Construction uses the allowance method to account for uncollectibles, which of the following scenarios may pertain to these transactions?

Answers

Answer:

'Bad debts write off' AND 'Recovery of Bad debts written off'

Explanation:

The Journal entry to write off a bad account affects only balance sheet accounts:

a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

No expense or loss is reported on the income statement because this write-off is "covered" under the earlier adjusting entries for estimated bad debts expense.

HOWEVER in scenario 2 where transaction involves a cashflow, it is a bad debt recovered transaction because upon recovery of bad debt previously written off

a debit to CASH and credit to Bad debts recovered account

Answer:

The first transaction should be to write-off of an uncollectible account (or bad debt), while the second transaction refers to the collection of a previously written-off bad debt.

Explanation:

The journal entry to record the write-off of an uncollectible account:

Dr Bad debt expense

    Cr Allowance for uncollectible accounts

Allowance for uncollectible accounts is a contra asset account that reduces accounts receivable.

The journal entries to record the collection of a bad debt:

Dr Accounts receivable

    Cr Bad debts expense

Dr Cash

    Cr Accounts receivable

The collection of the previously written off bad debt increases cash flows.

Gullett Corporation had $30,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $79,000 of raw materials. The journal entry to record the purchase of raw materials would include a: Multiple Choice debit to Raw Materials of $109,000 credit to Raw Materials of $79,000 debit to Raw Materials of $79,000 credit to Raw Materials of $109,000

Answers

Answer:

The journal entry to record the purchase raw material would include a debit to raw material of $79000 and credit to Raw materials of $109000..

Explanation:

Since the raw material is coming into the company, we have debit raw material and the opening balance is already there in the books of the business. hence raw materials increases.