Inflation is sky rocketing and prices are out of control what are banks most likely to ask th federal reserve to do with regards to government bonds and reserved requirements

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Answer 1

Answer:

When there is inflation, there is a large amount of money in circulation, which causes it to lose value and, therefore, a greater amount of money is required to acquire a certain good. Therefore, to curb inflation, it is necessary to decrease the money supply in circulation, that is, withdraw dollars from society and place them in the financial and banking system, to curb consumption and encourage investment.

Therefore, the Federal Reserve must carry out actions aimed at removing this money from circulation, which it can carry out through two fundamental actions: on the one hand, by raising the reserve requirements of banks, with which they can lend less money, thus slowing down monetary circulation; and on the other, raising the interest rate on debt bonds, thus promoting the outflow of money from consumers to the financial market.


Related Questions

Waxing is the illuminated side increasing; Waning is the illuminated side decreasing.
True or False

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Answer:

This is true.

Explanation:

Answer:

True

Explanation:

All of the following are steps in derivative classification except

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Answer:

what are the choices?

Explanation:

Answer:

Make recommendations for others to mark the new document.

Explanation:

It simply makes no sense compared to the other given answers

Barting involves exchanges in goods and services. But today, money,cost or price can be exchanged for goods and services?

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In this question there are some errors; here is the complete and correct question

Bartering involves exchanging goods and services. But today, _________can be exchanged for goods and services. A)money B)cost C) price

The correct answer is But today, money can be exchanged for goods and services

Explanation:

Bartering was a basic economic system in which individuals exchanged one product or service for another. For example, you can exchange a pound of rice for one of fruit. This was used in early communities before money was invented; however, nowadays bartering is not common in modern societies. This is because there is money or representations of it such as checks, credit cards, etc. and this is used to get goods and services. This means, today, it is money rather than other products the item use to obtain goods and services.

How do the three questions of economics influence economic
decisions?

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Answer:

In order to meet the needs of its people, every society must answer three basic economic questions:

What should we produce?

How should we produce it?

For whom should we produce it?

Every society, regardless of its political structure, must develop an economic system to determine how to use its limited productive resources to answer the three basic economic questions of what, how, and for whom to produce.

Uniformitarianism is succinctly summarized by which phrase?

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see i have no idea i just need points
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