Plz give both answer I will give you upvote asap A bond isO A. a debt claim that requires a company to pay interest on schedule.B. an ownership claim that allows stockholders to earn dividends or higher share prices.OC. an ownership claim that requires a company to pay dividends on schedule.O D. a debt claim that requires a company to pay dividends on schedule.If reserve requirements are increased, which of the following are true regarding the money multiplier?O A. The money multiplier decreases, and the money supply decreases.B. The money multiplier increases, and the money supply decreases.O C. The money multiplier increases, and the money supply increases.OD. The money multiplier decreases, and the money supply increases.

The promise being made by the borrower for paying the lender the principal and interest on the loan…

A bond is O A. a debt claim that requires a company to pay interest on schedule. B. an ownership claim that allows stockholders to earn dividends or higher share prices. OC. an ownership claim that requires a company to pay dividends on schedule. D. a debt claim that requires a company to pay dividends on schedule.

A bond is O A. a debt claim that requires a company to pay interest on schedule. B. an ownership claim that allows stockholders to earn dividends or higher share prices. OC. an ownership claim that requires a company to pay dividends on schedule. D. a debt claim that requires a company to pay dividends on schedule.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The central bank sold existing government securities in an open market operation. Which of the following changes is the most likely result of this action? Select one: a. The reserve requirement decreases. O b. The nominal interest rate increases. O c. The discount rate increases O d. Bank reserves increase.
When a bank suffers deposit outflows and has no excess reserves, the bank will generally first try to raise the funds by O A. calling in some loans. B. borrowing from the Fed. C. selling some of its securities. D. selling some loans. Suppose that a bank has $80 in checkable deposits, reserves of $15, and a reserve requirement of 10%. Also assume that the the bank suffers a $10 deposit outflow. If the bank chooses to borrow from the Fed to meet its reserve requirement, then the bank would need to borrow $. (Round your response to the nearest two decimal place.)
By using open market operations, the Federal Reserve O a. adjusts the supply AND demand of reserves to keep the federal funds interest rate equal to its target. O b. adjusts the supply of reserves to keep the federal funds interest rate equal to its target. Oc controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target. O d. adjusts the demand of reserves to keep bank rates in line with the federal funds rate target. O e. None of these answers is correct.
If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 25 percent, what happens to the money supply in the very short term? O a. It decreases by $100. O b. It increases by $25. O C. It decreases by $25. O d. It increases by $100. Show Transcribed Text Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio? O a. 1 percent O b. 5 percent O C. 10 percent O d. 25 percent Show Transcribed Text Which list ranks the Bank of Canada's monetary policy tools from most to least frequently used? O a. bank rate changes; open-market transactions; reserve requirement changes O b. bank rate changes; reserve requirement changes; open-market transactions O c. open-market transactions; bank rate changes; reserve requirement changes O d. open-market transactions; reserve requirement changes; bank rate changes
Assume a banking system where all banks hold target levels of reserves and there is a currency drain. Which of the following would reduce the deposit multiplier? i) Households choose to hold more of their cash outside of banks ii) Banks reduce their target reserves ratio ii) Banks increase their target reserves ratio O a. only i O b. i and ii Oc. i and iii O d. None of the answers offered are accurate O e. only ii
If an increase of $5 million in excess reserves increases checkable deposits in the banking system by a maximum of $50 million, the required reserve ratio would be O a. 10 percent. O b. 5 percent. O c.0 percent. O d. 20 percent. O e. 2 percent.
Explain what will happen to the money multiplier process if there is an increase in the reserve requirement? O A. An increase in the reserve requirement means that banks will be less likely to have your money when you demand it, but it would increase the money multiplier OB. An increase in the reserve requirement means that banks will be more likely to have your money when you demand it, increasing the money multiplier OC. Since a greater portion of each deposit is being lent out, the multiplier will increase. This means more loans lent and more economic growth. OD. Since a smaller portion of each deposit is being lent out, the multiplier will decrease. This means fewer loans lent and less economic growth.
Cash held by public Transactions deposits Required reserves Excess reserves U.S. bonds held by public Item Amount The public will hold $375 billion in bonds. O The money supply will increase by $25 billion. The money supply will increase by $125 billion $80 billion $150 billion $30 billion $0 billion $350 billion If the Federal Reserve buys $25 billion in bonds from the public, then which of the following is true after the multiplier process? Excess reserves would go up by $20 billion.
Question 1) Explain what will happen to M1 and M2 measures of money supply if an individual moves money from demand deposit account to a small-denomination time deposit. Question 2) Issuing marketable securities is the primary way businesses finance their operations. Trueor false? Explain your answer. If a four-year bond with a $2000 face value has a coupon rate of 2.5%, and the currentmarket interest rate is 4%, what is the market price of the bond? If this bond sold for $1900, is theyield to maturity greater or less than 4%? Why?
The persons who are laid off when a supermarket closes because the manager did not run the business efficiently are considered to be Select one: O a. frictionally unemployed. b. seasonally unemployed. structurally unemployed. O C. d. cyclically unemployed. marginally unemployed.
Which set of actions could the central bank use to increase the money supply? Select one: O a. an open market purchase and a tax cut O b. a discount rate cut and an open market sale O c.a reduction in the required reserve ratio and an open market purchase O d. a reduction in the required reserve ratio and an open market sale
Question 12 Suppose the required reserve ratio is 10% and the Fed purchases $100 million worth of Treasury bills from Wells Fargo. Assume that Wells Fargo has no excess reserves prior to the Fed's purchase, what is the maximum amount that Wells Fargo can lend out? Select one: O $100 million. O $110 million. O$10 million. Ⓒ$90 million.