Discount Calling Rate

brooke k asked:


27. A legal promise to repay a debt is called:

A. equity.
B. stock.
C. a bond.
D. a dividend.
E. the principal amount.

28. The interest rate promised when a bond is issued is called the:

A. coupon rate.
B. real rate of interest.
C. real after-tax rate of interest.
D. dividend rate.
E. discount rate.

Hal

Rick asked:


1.The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:
a.of commercial banks are unchanged, but their reserves increase.
b.and reserves of commercial banks both decrease.
c.of commercial banks are unchanged, but their reserves decrease.
d.of commercial banks are both unchanged.

2.The Fed can change the money supply by:
a.changing bank reserves through the sale or purchase of government securities.
b.changing the quantities of required and excess reserves by altering the legal reserve ratio.
c.changing the discount rate so as to encourage or discourage commercial banks in borrowing from the central banks.
d.doing all of the above.

3.The purchase of government securities from the public by the Fed will cause:
a.commercial bank reserves to decrease.
b.the money supply to increase.
c.demand deposits to decrease
d.the interest rate to increase.

4.If the Fed were to reduce the legal reserve ratio, we would expect:
a.lower interest rates, an expanded GDP, and a higher rate of inflation.
b.lower interest rates, an expanded GDP, and a lower rate of inflation.
c.higher interest rates, a contracted GDP, and a higher rate of inflation.
d.higher interest rates, a contracted GDP, and a lower rate of inflation.

5.The interest rate at which the Federal Reserve Banks lend to commercial banks is called the:
a.prime rate.
b.short-term rate.
c.discount rate.
d.Federal funds

6.The Federal funds rate is the interest rate that _______ charge(s) _______.
a.banks; other banks.
b.the Fed; commercial banks.
c.banks; their best corporate customers.
d.banks; on federal student loans.

Donny

Louis max j asked:


1If in the market for money the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will:

a. fall, causing households and businesses to hold less money. b. rise, causing households and businesses to hold less money. c. rise, causing households and businesses to hold more money. d. fall, causing households and businesses to hold more money.

2 If the Federal Reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to:

a. sell government securities, raise reserve requirements, and raise the discount rate. b. buy government securities, raise reserve requirements, and raise the discount rate. c. sell government securities, lower reserve requirements, and lower the discount rate. d. sell government securities, raise reserve requirements, and lower the discount rate.

3 Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the:

a. prime rate. b. Federal funds rate. c. Treasury bill rate. d. discount rate.

Milan

Rick asked:


1.The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:
a.of commercial banks are unchanged, but their reserves increase.
b.and reserves of commercial banks both decrease.
c.of commercial banks are unchanged, but their reserves decrease.
d.of commercial banks are both unchanged.

2.The Fed can change the money supply by:
a.changing bank reserves through the sale or purchase of government securities.
b.changing the quantities of required and excess reserves by altering the legal reserve ratio.
c.changing the discount rate so as to encourage or discourage commercial banks in borrowing from the central banks.
d.doing all of the above.

3.The purchase of government securities from the public by the Fed will cause:
a.commercial bank reserves to decrease.
b.the money supply to increase.
c.demand deposits to decrease
d.the interest rate to increase.

4.If the Fed were to reduce the legal reserve ratio, we would expect:
a.lower interest rates, an expanded GDP, and a higher rate of inflation.
b.lower interest rates, an expanded GDP, and a lower rate of inflation.
c.higher interest rates, a contracted GDP, and a higher rate of inflation.
d.higher interest rates, a contracted GDP, and a lower rate of inflation.

5.The interest rate at which the Federal Reserve Banks lend to commercial banks is called the:
a.prime rate.
b.short-term rate.
c.discount rate.
d.Federal funds

6.The Federal funds rate is the interest rate that _______ charge(s) _______.
a.banks; other banks.
b.the Fed; commercial banks.
c.banks; their best corporate customers.
d.banks; on federal student loans.

Charlotte

Viperdude5064410 asked:


selling government securities, raising the reserve ratio, lowering the discount rate, and a budgetary surplus.
buying government securities, reducing the reserve ratio, reducing the discount rate, and a budgetary deficit.
buying government securities, raising the reserve ratio, raising the discount rate, and a budgetary surplus.
buying government securities, reducing the reserve ratio, raising the discount rate, and a budgetary deficit.

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