🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
145
views
2 Nov 2020

1. The mechanisms for saving available to households include the following categories:

a. deposits in bank accounts

b. bonds

c. stocks

d. all of the above

Booster class
Microeconomics
Skill
Explaining Households Supply of Financial Capital
Watch
1
answer
0
watching
145
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Raushan Raj
Raushan RajLv8
2 Nov 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

2. The mechanisms for saving available to households needs to be analyzed in terms of three factors: 

a. the expected rate of return it will pay

b. the risk that the return will be much lower or higher than expected

c. the liquidity of the investment

d. all of the above

Suppose households hold $0.30 in currency for every $1 they have as demand deposits (checking accounts). Also, banks hold 20% of their deposits as reserves.

A. If the Federal Reserve buys $10 of government bonds from banks, by how would would the following change (include a minus sign if the value falls)?
i. the money supply (M1)
ii. the monetary base

B. Instead of Bonds being sold, suppose that households chose to hold less in currency and more in demand deposits. Explain how that would change
i. Money supply (M1)
ii. the monetary base

The M1 money supply is composed of:

a. All coins and paper money held by the general public and the banks.

b. Checkable deposits and currency in circulation.

c. Bank deposits of households and business firms.

d. Bank deposits and mutual funds.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in