Questions 37 up to 43 should be answered from the following Federal Reserve Bank Balance Sheet:...

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Questions 37 up to 43 should be answered from the following Federal Reserve Bank Balance Sheet: Assets Treasury securities held outright Table: Federal Reserve Balance Sheet. Liabilities + NW 5,397 Monetary liabilities Agency debt, mortgage-backed securities 2,624 Other Assets 412 Reverse Repurchase Agreement Capital and other liabilities 38 2,414 Federal Reserve notes, net of F.R. Bank holdings 2,246 Deposits of depository institutions Treasury account 3,735 500 37. The quantity of narrow money of money base in the economy was given by: a) 2414 b) 5981 c) 6081 d) 500 38) The amount of Claims on government sector net of treasury money holdings was: a) 5397 b) 2674 c) 4897 d) none of the above. 39) The amount of Net Foreign Assets, usually the main component of the asset side of the balance sheet of a CB, in the case of the FED is equal to. a) 5397 b) 2674 c) less than 412 d) none of the above. 40) The FOMC decides to increase the interest rate by implementing an Open Market Operation, selling TBs and decreasing bank reserves in the banking system by an amount of 735 $. Then the following is true: a) Claims on government sector will be reduced by 735 while the deposit of depositary institutions declines by the same amount. b) Claims on financial sector will be reduced by 735 while the reserves decline by the same amount. c) Claims on foreign sector will be reduced by 735 at the same time that the reserves decline by the same amount. 6 d) none of the above. 41) Following the 2007 financial crisis, the FOMC decided to decrease the interest rate *the fed funds rate. Then the FOMC ordered the Fed at NY to conduct OMO to increase the amount of reserves in the system. Looking the actual Balance Sheet today, would be equivalent to a buy of TBs by 900 $. Therefore: a) Claims on financial sector will be reduced by 735 while the deposit of depositary institutions declines by the same amount. b) Claims on government sector increased by 900 while the deposit of depositary institutions increases by the same amount. c) Claims on foreign sector will be reduced by 900 at the same time that the reserves decline by the same amount. d) none of the above. 42) After such intervention, the increased in money in the economy and the increase in the Fed Balance, worried the Fed for its potential inflationary effect: a) The monetary base increased by 900 and the Balance Sheet increased by 735. b) The monetary base increased by 735 and the Balance Sheet increased by 735. c) The monetary base increased by 900 and the Balance Sheet increased by 900. d) none of the above. 43) Fearing the possible inflationary impact, the Fed decided to offer the depositary institutions a reverse REPO of 65 $. After the operation: a) The monetary base increased by 900 and the Balance Sheet increased by 835. b) The monetary base increased by 835 and the Balance Sheet increased by 900. c) The monetary base increased by 900 and the Balance Sheet increased by 900. d) None of the above. Questions 37 up to 43 should be answered from the following Federal Reserve Bank Balance Sheet: Assets Treasury securities held outright Table: Federal Reserve Balance Sheet. Liabilities + NW 5,397 Monetary liabilities Agency debt, mortgage-backed securities 2,624 Other Assets 412 Reverse Repurchase Agreement Capital and other liabilities 38 2,414 Federal Reserve notes, net of F.R. Bank holdings 2,246 Deposits of depository institutions Treasury account 3,735 500 37. The quantity of narrow money of money base in the economy was given by: a) 2414 b) 5981 c) 6081 d) 500 38) The amount of Claims on government sector net of treasury money holdings was: a) 5397 b) 2674 c) 4897 d) none of the above. 39) The amount of Net Foreign Assets, usually the main component of the asset side of the balance sheet of a CB, in the case of the FED is equal to. a) 5397 b) 2674 c) less than 412 d) none of the above. 40) The FOMC decides to increase the interest rate by implementing an Open Market Operation, selling TBs and decreasing bank reserves in the banking system by an amount of 735 $. Then the following is true: a) Claims on government sector will be reduced by 735 while the deposit of depositary institutions declines by the same amount. b) Claims on financial sector will be reduced by 735 while the reserves decline by the same amount. c) Claims on foreign sector will be reduced by 735 at the same time that the reserves decline by the same amount. 6 d) none of the above. 41) Following the 2007 financial crisis, the FOMC decided to decrease the interest rate *the fed funds rate. Then the FOMC ordered the Fed at NY to conduct OMO to increase the amount of reserves in the system. Looking the actual Balance Sheet today, would be equivalent to a buy of TBs by 900 $. Therefore: a) Claims on financial sector will be reduced by 735 while the deposit of depositary institutions declines by the same amount. b) Claims on government sector increased by 900 while the deposit of depositary institutions increases by the same amount. c) Claims on foreign sector will be reduced by 900 at the same time that the reserves decline by the same amount. d) none of the above. 42) After such intervention, the increased in money in the economy and the increase in the Fed Balance, worried the Fed for its potential inflationary effect: a) The monetary base increased by 900 and the Balance Sheet increased by 735. b) The monetary base increased by 735 and the Balance Sheet increased by 735. c) The monetary base increased by 900 and the Balance Sheet increased by 900. d) none of the above. 43) Fearing the possible inflationary impact, the Fed decided to offer the depositary institutions a reverse REPO of 65 $. After the operation: a) The monetary base increased by 900 and the Balance Sheet increased by 835. b) The monetary base increased by 835 and the Balance Sheet increased by 900. c) The monetary base increased by 900 and the Balance Sheet increased by 900. d) None of the above.

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The quantity of narrow money in the economy was given by a 2414 The correct answer is a 2414 The amount of Claims on the government sector net of trea... View the full answer