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Category > Economics Posted 03 May 2017 My Price 6.00

checking account

QUESTION 1

  1. If a checking account has an interest rate of 2% and a government T-bill has an interest rate of 5%, the opportunity cost of holding the checking account is_________  %.



QUESTION 7

  1. If every $200 change in the money supply causes interest rates to change by 1% and the reserve requirement is 10%, the Fed would have to (buy, sell)__sell____  T-bills in the amount of $___________ to raise interest rates 2%.



QUESTION 9

  1. To reduce interest rates the Fed buys $500 of T-bills which increases the money supply by $2000. The money multiplier is equal to___________  and the reserve ratio is equal to________  %.

Answers

SuperTutor
(15)
Status NEW Posted 03 May 2017 02:05 AM My Price 6.00

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