Call us 24/7: + 1(925)399 0085

Get your paper done by an expert

No matter what kind of academic paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcer. Save more time for yourself.

WhatsApp + 1(925)399 0085
$ 10
  • bibliography
  • title page
  • revisions
per page
19 k happy customers
4.7 out of 5 satisfaction rate
27 writers active

Eco 372 Week 3 Dq Initially Money Is Created By Fed Printing

eco 372 week 3 DQ
Initially, money is created by Fed by printing bills and coins. But, in an economy there is much more money than the currency in calculation. If the reserve requirement is 20% and the bank loans out all deposits minus required reserve, a $100 deposit will create $5000. How is it possible? Please see the following table:

Bank Gets Bank Keeps
(Reserve Ratio: 20%) Bank Loans (80%) = Person Borrows
Initial deposit 10,000 2,000 8,000
Second stage 8,000 1,600 6,400
Third stage 6,400 1,280 5,120
Fourth stage 5,120 1,024 4,096
Fifth stage 4,096 819 3,277
Sixth stage 3,277 656 2,621
Seventh stage 2,621 524 2,097
All other stages 10,486 2,097 8,389
TOTAL 50,000 10,000 40,000
Words: 83

A MONETARY SNAPSHOT (data in $billion)

Wednesday Averages
Repos Discount Window Lending
Float Deposits at Federal Reserve Banks
July 4 – Sept. 5, 2001 $27,298 $59 $720 $19,009
September 12, 2001 61,005 45,528 22,929 102,704
September 19, 2001 39,600 2,587 2,345 13,169

Source: C. J. Neely, “September 11, 2001,” Monetary Trends, Federal Reserve Bank of St. Louis, November 2001.

1. Which of the tools of monetary policy did the Fed use in the emergency?
2. Why did the grounding of aircraft cause the Fed to act?
3. The chapter lists the duties the Fed must perform. Which duties are mentioned in the article?
4. What forms did liquidity take?
5. Do you think the Fed acted correctly?

What are the three stages of a financial crisis? Briefly explain how each stage played out differently during the Great Depression and the Crisis of 2008.
Explain the relationship between one’s beliefs about whether the minimum jobs program presented in the chapter actually solves the unemployment problem and one’s normative view of responsibility for unemployment.

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Our Homework Writing Disciplines

With a highly diverse team in almost all academic fields including: