Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Analysis of contraction monetary policies.

Consider the T-account of the subsequent bank and answer the subsequent problems based on it. 

Tarheel bank

Asset

liabilities

Cash Reserves

240,000

1,400,000

   Deposits

Loans              

1,360,000

200,000

  Stockholder's Equity

Total

1,600,000

1,600,000

  Total

a) Suppose the Federal Reserve was concerned which the economy was growing too fast raising the fears which inflation may increase.  Using open market operations, how might the Federal Reserve Open Market Committee respond to this concern?  Illustrate what kind of monetary would make sense?  How would it affect the economy?

b) Specifically, how would the above policy affect the balance sheet of the bank above assuming the Tarheel bank participated in the open market operation?  How would it specifically affect the bank's balance sheet?  How would this achieve the end of the Fed?  describe.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917197

Have any Question? 


Related Questions in Business Economics

Choose three companies you believe the first builds

Choose three companies. You believe the first builds customer value through product excellence, the second through operational excellence, and the third through customer excellence. Justify your answer.

Suppose you have the following hypothetical demand or sales

Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.20I+0.04A and PX = $200, (price of good X) PY =$230, (price of good Y) I = $1,500 (disposable per capita income) A =$12,000 (advertizin ...

Effect of bank strategies on bank ratings a bank has asked

Effect of Bank Strategies on Bank Ratings A bank has asked you to assess various strategies it is considering and explain how they could affect its regulatory review. Regulatory reviews include an assessment of capital, ...

Wal-mart charges 20 for the new ghostbusters dvd and sells

Wal-Mart charges $20 for the new Ghostbusters DVD and sells 400 copies per month. Then they reduce their price to $18, and sell 500 per month. Assuming a linear demand curve, find the optimal price to charge if the goal ...

Distinguish between mobile subscriber isdn number and

Distinguish between mobile subscriber, ISDN number and mobile station roaming?

What is the relationship between the output of a perfectly

What is the relationship between the output of a perfectly competitive market and the output of a monopoly when both face the same costs (assume constant marginal cost) and the same linear demand. Sketch this basic assum ...

Legal issues in information security and incident response

Legal Issues in Information Security and Incident Response IP Unit Please provide information that has been certified as not similar to anything else on the internet or schools. I will not accept anything above 20% simil ...

1 explain why adding a switch makes the network perform

1) Explain why adding a switch makes the network perform better in terms of throughput and delay. 2) We analyzed the collision counts of the hubs. Can you analyze the collision count of the"switch"? Explain your answer.

You are working as a senior economist at spacecar spacecar

You are working as a senior economist at SpaceCar. SpaceCar produces an electric car called the RAT. The RAT is a new car that has new revolutionary technology in it, far beyond what any other electric cars have in them. ...

The bf goodrich co decided to close one of its plants it

The B.F. Goodrich Co. decided to close one of its plants. It offered to pay a 10% bonus to any employee who continued to work in the plant until it closed. Maude Miami was employed at the existing plant; she knew of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate