Imagine you are running a bank and you are deciding how much of your funds to deposit with the Fed. Your alternative to depositing funds with the Fed is to lend them to businesses and individuals. What are you likely to do if the Federal Reserve increases the interest rate that it pays on your deposits with them

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Answer 1

If the Federal Reserve increases the interest rate that it pays on your deposits with them increase reserves at the Fed and reduce loans.

If the Federal Reserve increases the interest rate that it pays on your deposits with them, this means that the amount I deposit with the Fed would earn a higher rate of interest.

The aim of businesses is to make profit. As a result, I would increase the amount I deposit with the Fed in order to earn a higher rate of interest on my deposit and I would reduce the amount of loans I make.

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Related Questions

Kari finds a piece of land that she wants to buy but needs some time to be able to come up with the funds to purchase it. She pays the landowner, Jerry, $10,000 for an option to purchase the property for $200,000 anytime in the next two years. Six months later, Kari purchases the property. Which of the following is not true?

a. Kari does not have a recognized gain or loss
b. Kari recognizes a $10,000 loss
c. Kari's basis in the property is $210,000
d. Jerry's amount realized is $210,000

Answers

Answer:

the answer is either a or b

Explanation:

because if there is a loss then it b if there isn't that means it a

In order to overcome the ________ problem, interest groups often provide ________ to their members. free-rider; collective goods free-rider; selective benefits principal-agent; collective goods principal-agent; selective benefits

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The selective benefits are regarded as benefits given only to group members. In order to overcome the free-rider problem, many interest groups offer selective benefits.

The free-rider problem is often known as a type of market failure. It takes place when individuals who benefit from resources, public goods or services of a benefit to all nature do not pay for them or they under pay.

They are problem because they do not pay for the goods but still continue to access or use it.

This problem in social science deals with how to limit free riding and its negative effects in the society.

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The claim that the high school drop-out rate has increased because more women have taken jobs in the workplace would be an example of

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Claims that drop-out rate has increased because more women have taken jobs in the workplace is an example of false cause fallacy.

A false cause fallacy is said to occur in a statement because the link between the premises and conclusion does not even exist.

Here, phrase one is "high school drop-out rate has increased" and phrase two is "because more women have taken jobs in the workplace"

If we assess the two phrase, we will observe that their is no link between the statement to facilitate a valid conclusion because when woman taking jobs in workplaces can not result to increase in drop rate in high school.

Therefore, it is an example of false cause fallacy.

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Please help please please

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Answer:

e you chose that includes at leasnts on your time line.) You can create the time line below or submit a separate Word or PowerPoint document containing the time line. If your tim

Explanation:

5. Submit a thematic time line for the theme yo You can create the time line below or submit a separate Word or PowerPoint document containing the time line. If your tim

packaging serves several critical functions in the overall success of a product. some of these functions are

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Some of the several functions which packaging of a product serves in making a product successful includes:

It serves as protection to the productit helps to contain the product/goodIt gives the customer information about the product, etc

According to the given question, we are asked to show the several functions which packaging of a product has on the success of the product and how they help to maximize sales.

As a result of this, we can see that packaging is the process of putting a product or a good into a container or a package and it is an important step of branding which further serves to attract the potential customers with attractive packaging, but it does more than this as it also offers protection to the package.

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Answer:

attracting the buyers attention

giving a potential buyer a sense of price , values and uses

explaining the benefits of whats inside

Explanation:

NYSE MARKET DIARY
Yesterday Prev. Day
Advanced 577 827
Declined 1963 1757
Unchanged 455 388
Total Issues 2995 2972
New Highs 10 13
New Lows 91 78
Based on the information presented for both days, a technical analyst would conclude that the market:
A. is in a consolidation phase
B. breadth indicates a strong bullish trend
C. breadth indicates a strong bearish trend
D. is peaking and will soon enter a downturn

Answers

The answer to this is going to be b

DESCRIPTION OF THE LAW OF DEMAND

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Answer:

The law of demand states that quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded

Identify four (4) different types of credit (purposes)

Answers

Answer:Revolving Credit. Charge Cards. Installment Credit. Non-Installment or Service Credit

Natalie books an appointment at a hair salon to get a haircut, color, and a blow dry. When it is time for her appointment, she shows up at the salon and receives these services from a stylist. This scenario illustrates that services

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The scenario where Natalie books an appointment and shows up at the salon to receives the services illustrates that services are usually distributed through direct marketing channels.

Direct marketing channel refers to the sales process which directly involves the seller and end buyer without the service of intermediary.

In a direct marketing channel, the service of intermediaries (such as retailers, agent, wholesalers) are not prioritize

The medium which are most perfect for direct marketing channel includes through internet, digital media etc

In the question, Natalie books an appointment with the stylist through her phone without the service of intermediaries.

Therefore, the scenario best illustrates that services are usually distributed through direct marketing channels.

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Taxes assessed on which single industry form a significant source of income for the state and add an element of unpredictability when projecting future revenues

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Considering the macroeconomic analysis, Taxes assessed on the Petroleum or Oil industry form a significant source of income for the state and add an element of unpredictability when projecting future revenues.

This is because the petroleum industry is known for its high generating revenue, which has become a significant export for many countries worldwide.

Some countries that rely on petroleum or oil industry include OPEC countries, Russia, Brunei, etc.

However, given that many technologies are trying to move away from Petroleum energy, and due to its non-renewable nature, the revenue from the Petroleum industry is considered unpredictable.

Hence, in this case, it is concluded that the correct answer is Petroleum Industry.

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What is the most important factor of producing goods

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Answer:

Human capital is the most important factor of production because it puts together land, labour and physical Capital and produce an output either to use for self consumption or to sell in the market. It includes the skilled and unskilled work force of a nation.

Cashews, Inc. issued $100,000, 6% bonds at face value on January 1. The bonds pay interest semiannually on June 30 and December 31. For the year ended December 31, the amount of interest paid equals ______ and is reported on the statement of cash flows as a(n) ______ activity. Multiple choice question.

Answers

The answer is $6,000 and operating

Which of the following would be covered by a home insurance policy?
Question 5 options:

Hospital expenses for surgery

Wind damage to your roof

Accidental injury to a coworker on the job

Damage to another person's car when driving

Answers

Answer:

2

Explanation:

Wind damage to your roof

The answer to this question is B: Wind damage to your roof. That’s because it is the only option that has to do with homes.
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