Exam (elaborations)
ECN-460 Final Questions And Answers Latest Update
- Course
- ECN 460
- Institution
- Arizona State University
ECN-460 Final Questions And Answers Latest Update
[Show more]
Content preview
Solution 2024/2025Pepper
ECN-460 Final Questions And Answers Latest
Update
Board of Governors duties ANS✔✔ Set reserve requirements, set IOR,
determines discount rate
12 Reserve Bank duties ANS✔✔ Establish discount rate, vote on OMO, issue
new currency
FOMC duties ANS✔✔ Set FFR through OMO, advise on discount, IOR, and
Reserve Requirements
Why is the Feds independence important? ANS✔✔ Policy not subject to the
political business cycle (ex. president nixon using expansionary policy just
before an election)
When is a Fed governor appointed? ANS✔✔ Every 14 years
How is the chairman appointed? ANS✔✔ Chosend from governors, serves 4
year term
What does the FOMC include? ANS✔✔ 7 board if governors + 5 FRB
Presidents
Who is required to follow reserve requirements? ANS✔✔ All banks
, Solution 2024/2025
Pepper
Quasipublic Nature ANS✔✔ Owned by private commercial banks in
respective disticts
Beige Book ANS✔✔ a Federal Reserve System publication about current
economic conditions across the 12 Federal Reserve Districts
Advantages of OMO ANS✔✔ Fed has control, flexible and precise, easily
reversed
If the FR wants to raise reserves they conduct ANS✔✔ OMP
If the proceeds are kept in currency, an OMP has ANS✔✔ no effect
Float ANS✔✔ Temporary increase in reserves because of fed's check-
clearing process
Money Supply Factors: After an increase in Nonborrowed monetary base,
the money supply ANS✔✔ increases
Money Supply Factors: After an increase in Required Reserve Ratio, the
money supply ANS✔✔ decreases
Money Supply Factors: After an increase in Borrowed reserves, the money
supply ANS✔✔ increases
Money Supply Factors: After an increase in excess reserves, the money
supply ANS✔✔ decreases
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now