Suppose the fed conducts an open market purchase by buying $10 million in treasury bonds from acme bank. sketch out the balance sheet changes that will occur as acme converts the bond sale proceeds to new loans. the initial acme bank balance sheet contains the following information: assets – reserves 30, bonds 50, and loans 50; liabilities – deposits 100 and equity 30.

2. (a) suppose the fed decides it needs to pursue an expansionary policy. assume the reserve requirement is 20 percent, and there are no excess reserves. show how the fed would increase the money supply by $2 million through open market operations.

(b) some individuals have suggested raising the required reserve ratio for banks to 100 percent:

(i) what could the money multiplier be if this change were made?

(ii) what effect would such a change have on the money supply?

(iii) how could that effect be offset (in ii above)?

In order to gauge public opinion about how to handle iran's growing nuclear program, a research group surveyed 1010 americans by telephone and asked them to rate the threat iran's nuclear program poses to the world on a scale of 1 to 10. describe the population, sample, population parameters, and sample statistics. identify the population in the given problem. choose the correct answer below.

Select the word from the list that best fits the definition sometimes

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances