Consider the sale of $25 billion worth of government securities by the Federal Reserve. The maximum reduction in the money supply is $250 billion if the required reserve ratio is 10%. Hence, Option D is correct.
What is the Federal Reserve?
To guarantee that the financial system supports a strong economy for American people, communities, and businesses, the Federal Reserve actively participates at home and abroad and analyzes financial system vulnerabilities.
However, this is only true in the sense that the President or any other member of the executive arm of the government is not required to ratify its decisions.
The Federal Reserve must operate within the parameters of the general goals of established economic and financial policy, which are under the control of the U.S. Congress.
Therefore, Option D is correct.
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The complete question has been attached in text form:
Suppose the Federal Reserve sells $25 billion worth of government securities. If the required reserve ratio is 10%, the maximum decrease in the money supply is ____.
answer choices
$2.5 billion
$25 billion
$50 billion
$250 billion
I need help with all these!
Answer:
a
c
a
b
d
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A) The three levels of biodiversity are genetic diversity, species diversity, and ecosystem diversity. Explain the three levels of
biodiversity and the concerns associated with loss of diversity at each level.
B) Species and genetic diversity can be very beneficial to humans. Describe three ecosystem services that nature provides to
humans.
Answer:
A) Biodiversity, often known as biological diversity, refers to the diversity of living things on the planet. It is defined as the degree of life variance. Microorganisms, plants, animals, and ecosystems such as coral reefs, woodlands, rainforests, and deserts are all examples of the biological variety. B) Each species, no matter how large or little, plays a crucial part in the environment when it comes to biodiversity. It symbolizes the abundance of biological resources at our disposal. It's all about preserving the natural region, which is made up of a community of plants, animals, and other living things, which is steadily dwindling as we plan human activities, which is being dwindled due to habitat loss.