If no decent lending opportunity arises in the economy, and the central bank pays an interest rate
Question:
If no decent lending opportunity arises in the economy, and the central bank pays an interest rate on reserves that is similar to other low-risk investments, do you think banks will be willing to hold large amounts of excess reserves?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
Banks should be willing to hold large amounts of excess reserves This is exactly w...View the full answer
Answered By
Lamya S
Highly creative, resourceful and dedicated High School Teacher with a good fluency in English (IELTS- 7.5 band scorer) and an excellent record of successful classroom presentations.
I have more than 2 years experience in tutoring students especially by using my note making strategies.
Especially adept at teaching methods of business functions and management through a positive, and flexible teaching style with the willingness to work beyond the call of duty.
Committed to ongoing professional development and spreading the knowledge within myself to the blooming ones to make them fly with a colorful wing of future.
I do always believe that more than being a teacher who teaches students subjects,...i rather want to be a teacher who wants to teach students how to love learning..
Subjects i handle :
Business studies
Management studies
Operations Management
Organisational Behaviour
Change Management
Research Methodology
Strategy Management
Economics
Human Resource Management
Performance Management
Training
International Business
Business Ethics
Business Communication
Things you can expect from me :
- A clear cut answer
- A detailed conceptual way of explanation
- Simplified answer form of complex topics
- Diagrams and examples filled answers
4.90+
46+ Reviews
54+ Question Solved
Related Book For
Economics of Money Banking and Financial Markets
ISBN: 978-0134733821
12th edition
Authors: Frederic S. Mishkin
Question Posted:
Students also viewed these Business questions
-
a. Compute the weighted average cost of capital for this project, assuming that the long-term debt financing is in dollars and ignoring any taxes. b. Assuming that the peso/dollar exchange rate...
-
Assume that capital markets do not exist. Ryan has $70,000 today (t = 0) and will receive $90,000 in exactly one year (t = 1). The graph below illustrates point Y: having $70,000 now and receiving...
-
The following situations involve the application of the time value of money concept: a. Jan Cain deposited $19,500 in the bank on January 1, 1999, at an interest rate of 12% com-pounded annually. How...
-
Describe, draw, the curve with the following parametric equations in the cylindrical co-ordinate space: r = 5, z = 2,0 = t
-
Sugden Limited purchased land and a building on August 1, 2011, for $595,000. The company paid $200,000 in cash and signed a 5% bank loan payable for the balance. The bank loan is due April 1, 2013....
-
A power plant has a condenser temperature of 45C, a maximum pressure of 5 MPa, and a boiler exit temperature of 900C. It has one open FWH operating at 1 MPa. Find the fraction of extraction steam...
-
The Mach number for a body moving through a fluid with velocity \(V\) is defined as \(V / c\), where \(c\) is the speed of sound in the fluid. This dimensionless parameter is usually considered to be...
-
Figure 16.45 shows the pressure fluctuation p of a nonsinusoidal sound wave as a function of x for t = 0. The wave is traveling in the +x-direction. (a) Graph the pressure fluctuation p as a function...
-
You have developed a policy and documented it in conjunction with program team members. Should you test or trial the policy?
-
After building a scientific way for demand forecasting, Mary hoped Jason can propose the optimal inventory/ordering policies for these 4 products for the first week of 2019. The sale price/unit for...
-
After July 2010, bank customers using a debit card had to specifically opt-in to the banks overdraft protection plan. Explain the effect of this regulation on a banks noninterest income.
-
Which problem of asymmetric information are prospective employers trying to solve when they ask applicants to go through a job interview. Is that the end of the information asymmetry?
-
In triangle ABC below, the measure of angle A is 20 and the measure of angle B is 3 times larger than the measure of angle C. What is the measure of angle B? A. 40 B. 60 C. 80 D. 120 E. 160 B
-
A horizontal tubular type of boiler uses crude oil consisting substantially of hydrocarbon. The oil is available at 70 degree Fahrenheit and has a specific gravity of 8.90 and a viscosity of 58 cP....
-
The box is applied a force, Fpush, depicted in the image. The applied force will be increasing. Answer if the solid cubic starts eigher sliding or tipping over firstly? Assume that the friction of...
-
For the following array, you are to perform a binary search: 10 int nums[] = {10, 23, 78, 89, 96, 110, 125, 230, 310, 323, 878, 1010}; Search for the number 1100 by showing the low, midpoint and high...
-
How has the rapid proliferation of digital technologies transformed social relations, and what are the implications for identity, community, and power dynamics in the digital age ?
-
Your company wants to purchase a new network file server for its wide-area computer network. The server costs $24,000. Your options are to borrow the money at 10% or lease the machine. If you lease...
-
Sanjay purchased a single life annuity contract for $200,000. The contract will pay $15,000 per year beginning in 2017 for the remainder of his life and has an expected return of $330,000. What...
-
The outer loop controls the number of students. Note that the inner loop of this program is always executed exactly three times, once for each day of the long weekend. Modify the code so that the...
-
The U.S economy borrowed heavily from the British in the nineteenth century to build a railroad system. What was the principal debt instrument used? Why did this make both countries better off?
-
The U.S economy borrowed heavily from the British in the nineteenth century to build a railroad system. What was the principal debt instrument used? Why did this make both countries better off?
-
Because corporations do not actually raise any funds in secondary markets, they are less important to the economy than primary market. Comment.
-
ow do synergistic dynamics emerge within high-performance teams, and what role do diverse skill sets, complementary roles, and shared goals play in fostering collaborative innovation and collective...
-
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead...
-
You will complete two case studies over the course of the semester. These are to be completed individually. Each case study is found in the textbook and there are questions there to help guide your...
Study smarter with the SolutionInn App