Will buying bonds decrease the money supply?

14,887 questions
1. economics

Will buying bonds decrease the money supply?

asked by Tabby on December 13, 2007
2. Marcoeconomics

According to the formula, Bond price= y/r so bond price has a inverse relationship with interest rate.i.e. interest rate increases, bond price decreases. But why does it contradict with this demand-supply anysis: r(interest rate increases)--> returns from

asked by David on February 15, 2009
3. Macroeconomics

If investors sell their stocks and increase their money holdings due to a bad economy then A. demand for loanable funds will increase. B. demand for loanable funds will decrease. C. supply of loanable funds will increase. D. supply of loanable funds will

asked by Sara on May 20, 2015
4. Civics

Pedro is thinking about buying U.S. savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do this? A. Stocks on Wall Street

asked by A on May 19, 2016
5. Macroeconomics,

List and explain the three tools used by the Fed to manipulate the supply of money. In each case show how the money supply can increase/decrease.

asked by mercedes on June 21, 2010
6. Civics

Suppose the Federal Reserve raises interest rates. Which of the following predicts the most likely results? A. The money supply will decrease, meaning that banks will give fewer loans and prices for goods and services will fall. B. The money supply will

asked by Student on April 16, 2015
7. Civics

Suppose the Federal Reserve raises interest rates. Which of the following predicts the most likely results? A. The money supply will decrease, meaning that banks will give fewer loans and prices for goods and services will fall. B. The money supply will

asked by Student on April 16, 2015
8. macroeconomics

The interest rate were zero under the old government.The GDP is \$700 and at that time people kept a total of \$120 in cash stored as well as %50 worth of bonds. However, under new government the interest rate has risen to 36%. On average, cash is used five

asked by sw on April 24, 2007

If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.

asked by jim on June 11, 2015
10. math

Loans to companies, cities, or states that usually pay a specified interest rate are called: A. stocks B. bonds C. mutual funds D. money markets it is B bonds Which of the following is NOT an advantage of buying mutual funds? A. You can start with a small

asked by anonymous on January 10, 2012
11. economics

Am i right, just checking as too many wrong homework assignments at the start of this semester have messed up my grades If the required reserve ratio is 0.2, by how much could the money supply expand if the central bank purchased £2 billion worth of

asked by jill on May 24, 2013
12. Economics.

The buying and selling of government securities to alter the supply of money are: A. a painful necessity. B. Open market operations. C. equalizing the required reserve ration. D. tight money policies. I’m thinking its B.

asked by Jason on May 6, 2009
13. Macroeconomics

Suppose in an economy the nominal money supply is \$ 1000, the general price level is 4 and the real output is at its full employment level of \$4000. a. what is the price level and velocity of money? b. By assuming constant velocity of money, what would you

asked by Anonymous on July 5, 2015
14. Economics

Unemployment is on the rise though inflation is quite low. Gross Domestic Product is rising but more slowly than the goal rate. The Federal Reserve may buy government securities in open market operations in order to A. increase the money supply and

asked by Heather on May 22, 2014
15. macroecon

Assume that there is equilibrium in both the goods and the money market at all times. Suppose that the president of the United States has decided to start a war. The government will have to increase spending to pay for weapons, equipments, and

16. macroecon

Assume that there is equilibrium in both the goods and the money market at all times. Suppose that the president of the United States has decided to start a war. The government will have to increase spending to pay for weapons, equipments, and

17. Maths

Virti had 600 rupees. She spent 2/3 on buying a t-shirt and 1/5 of remaning money on buying hair clips. With how much money is she left with

asked by Piyush on April 17, 2015
18. FIN 100

P5: The following information is available to you: travelers’ checks = \$1 million; coin and paper currency = \$30 million; repurchase agreements and Eurodollars = \$15 million; demand deposits = \$25 million; retail money market mutual funds = \$60 million;

asked by Anonymous on January 5, 2015
19. Economics

Concern about international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply? A. No change B. Aggregate supply will decrease, raising the price level and lowering real

asked by Codey on May 31, 2011
20. Can someone help with this Econ problem?

Which monetary policy tool is used most often by the Federal Reserve? A. printing additional money B. buying or selling government securities and bonds C. raising or lowering bank reserve requirements D. adjusting the money multiplier formula E. adjusting

asked by Hajiku on July 12, 2018
21. Economics

The Fed conducts an open market purchase of securities. Explain the effects of this action in the short run and the long run on: a)The quantity of money b)The quantity of money demanded c)The nominal interest rate d)The real interest rate e)Real GDP f)The

asked by Jayda on November 27, 2006
22. Economics

If the real interest rates change in an economy due to a rise in income what is the impact on Money supply? a. Quantity of Money supplied will increase b. Quantity of Money supplied will decrease c. Quantity of Money supplied will not change d. None of the

asked by Anonymous on May 18, 2010
23. macroeconomics

can anyone help with this question? What would happen to the money supply if the federal reserve made an open market sale of 5 billion worth of government securities to a private citizen. Assume that the bank with which the private citizen does business is

24. Microeconomics

4. Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread and that potatoes are a consumer substitute for bread, we would expect the price of wheat to: A) rise, the supply of

asked by Anonymous on May 7, 2012
25. Economics

Hopefully you can help me and I need this ASAP. I need this by tomorrow in the morning. You answer the questions if it decreases increases, expands or not. Also, can you explain it too? This are what if situations. Don't answers don't have to be in depth.

asked by Mijee Jo on April 8, 2009
26. history.................im back

9.all were war efforts on the home front during world war 1 EXCEPT a)giving to the red cross. b)rationing food C)flying combat missions**** d) buying liberty bonds,victory bonds, and war savings stamps 10.the struggle for equality for women was only

asked by coolguy321 on March 3, 2016
27. Social Studies

How do labor unions affect the economy? They decrease demand by opposing low prices. They increase supply by keeping workers healthy*** They decrease supply by increasing worker wages They increase demand by ensuring ethical production

asked by Jeb on December 15, 2016

Her are the data on \$1000 par value bonds issued by Microsoft, Ford, and Xerox at the end of 2008, Assume you are thinking about buying these bonds as of January 2009. Answer the following questions. a. Calculate the values of the bonds if your required

asked by Chris on June 7, 2012
29. economics

Assume that the reserve requirement is 20%. Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the money supply by \$40 million. a. If the Fed is using open-market

asked by Anonymous on May 28, 2010
30. Macroeconomics

If Mary takes money from her savings account and buys a T-bond from Jody with that money, it's: A. An example of expansionary monetary policy. B. An example of contractionary monetary policy. C. An example of neutral (neither expansionary nor

asked by Ashley on May 11, 2013
31. Economics

Determine whether each of the following would lead to an increase, a decrease, or no change in the quantity of money people wish to hold. Also determine whether there is a shift in the money demand curve or a movement along a given money demand curve a. A

32. Economics

If Mary takes money from her savings account and buys a T-bond from Jody with that money, it's: A. An expansionary fiscal policy. B. An example of contractionary monetary policy. C. An example of expansionary monetary policy D. An example of neutral

asked by Dave on June 24, 2007
33. English

Posted by rfvv on Sunday, December 9, 2012 at 8:06pm. 1. He spent a lot of money on dancing. 2. He spent a lot of money in dancing. 3. He spent a lot of money on buying things at the shop. 4. He spent a lot of money in buying things at the shop. 5. He

asked by rfvv on December 9, 2012
34. USA PoliScience - HELP FAST

When the Fed was created in 1913, a. it had no role in the management of the nation's economy. b. it was restricted to providing emergency loans to financial institutions. c. it adhered to a strictly supply-side policy focus. d. its primary economic

asked by HM on October 5, 2011
35. Finance

An investment bank has created a CDO by pooling 100 bonds which will either pay off \$0 (in case of default) or pay off \$1. The CDO has three risk classes rated AAA, BBB, and CCC with face values of \$70, \$20, and \$10, respectively. The current prices of the

asked by Nabil on January 29, 2014
36. Finance

Demand of Bonds Point Price of bond Interest rate (i) Demand A \$925 (1000 - 925)/ 925 = 8.1% \$100 billion B \$800 (1000 - 800)/ 800 = 25% \$400 billion Table 2: Supply of Bonds Point Price of bond Interest rate (i) Demand A \$925 8.1% \$400 billion B \$800 25 %

asked by carey on November 12, 2010
37. English

1. He spent much money on clothes. 2. He spent too much money in buying books. 3. He spends lots of money traveling to many countries. 4. He spends plenty of time watching TV. 5. He spent a lot of time in buying items in the department store. Are all

asked by John on June 30, 2008
38. Maths

Swarna gave 1/4 of her pocket money to her brother. Out of the remaining money she spent 1/3 for buying a book and 1/6 for watching a movie. She donated the rest of the money for charity. What fraction of her pocket money did she donate?

asked by Udaya on March 24, 2016
39. economics

The Money Multiplier (MM) is exemplified. Why do you think the FED evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why

asked by Gbrown on July 22, 2011
40. English

1. He is so kind to help me. (Is this correct? What other expressions can we use?) 2. I don't spend a lot of money in buying things. 2-2. I don't spend a lot of money on buying things. (Which is correct? Which preposition do I have to use before 'buying'?)

asked by Tom on September 27, 2009
41. algebra 2

Suppose that you have received an unexpected inheritance of \$36,000. You have decided to invest the money by placing some of the money in stocks and some in bonds. To diversify, you decided that five times the amount in bonds should equal three times the

asked by anthony on March 12, 2008
42. strayer university

P5. The following information is available to you: travelers’ checks _ \$1 million; coin and paper currency _ \$30 million; repurchase agreements and Eurodollars _ \$15 million; demand deposits _\$25 million; retail money market mutual funds _ \$60 million;

asked by kenya on July 31, 2014
43. Finance 100

The following information is available to you: travelers' checks = \$1 million; coin and paper currency = \$30 million; repurchase agreements and Eurodollars = \$15 million; demand deposits = \$25 million; retail money market mutual funds = \$60 million;

asked by Rose on February 18, 2013
44. Principal of Finance

The following information is available to you: travelers' checks = \$1 million; coin and paper currency = \$30 million; repurchase agree¬ ments and Eurodollars = \$15 million; demand deposits = \$25 million; retail money market mutual funds = \$60 million;

asked by Frances Collins on July 8, 2012
45. Social Studies

Hoe does a decrease in supply affect the supply curve? :)) Maddie

46. Chemistry

How many pi bonds and sigma bonds are in ritalin molecule? I counted 4 pi bonds and 18 sigma bonds is that correct? I know double bonds are pi bonds and single bonds are pi bonds

asked by Kristy on November 11, 2010
47. econ

The terms below are measures or individual components of the money supply. Specifically considering the money supply of the United States, rank these items from largest to smallest in terms of dollar value. Currency, M2,M1,Balances in savings accounts,

asked by sara on March 27, 2014
48. Economics

Could you please check these thanks. Directions: Supply can decrease and increase depending upon several factors. Also you must put if that factor increase/decreases amount of supply, if the supply curves to the left/right, and if the cost to produce is

asked by Cathy on May 11, 2009
49. Macroeconomics

Why do you think the FED evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why does the FED like to fight inflation in our

asked by Jean on September 7, 2011
50. accounting

Mr. and Mrs. Garcia have a total of \$ 100,000 to be invested in stocks, bonds, and a money market account.The stocks have a rate of return of 12%/ year, while the bonds and the money market account pay 8% and 4%/ year, respec-tively. They have stipulated

asked by Anonymous on July 21, 2010
51. Econ

If the government subsidizes the construction of ethanol refineries, how does that affect the corn market? demand increse or decrease OR supply increase or decrease

52. maths

How much money is saved by buying an article priced at \$80 with a 40% discount,rather than buying an article marked at \$90 with discounts of 35% and 10% ? A. \$ 4.65 B. \$1.50 C. \$10.50 D. \$3.15 E. \$4.25 not just answer

asked by Tomas on August 15, 2013
53. banking and money

Steps 1. Complete the assigned readings for this unit. 2. Read the article found at the website provided in Materials below. 3. Post a 100- to 150-word answer for each of the following questions: Credit cards and travelers' checks are widely accepted as a

asked by vicky on March 11, 2008
54. Economics

Could you please check this Directions: Match each item with the correct statement. Here are the words: supply elasticity law of supply price system technology price ceiling supply inelastic supply curve shortage market supply taxes 1. principle that

asked by Taylor on May 14, 2009
55. Math

mr. and mrs. garcia have a total of 100000\$ to be invested in stocks, bonds, and a money market account. the stocks have a rate of return of 12% per year, while the bonds and the money market account pays 8% per year and 4% per year, respectively. the

asked by Anonymous on November 26, 2018
56. finance

Here are data on \$1,000 par value bonds issued by Microsoft, Ford, and Xerox at the end of 2008. Assume you are thinking about buying these bonds as of January 2009. Answer the following questions: a.) Calculate the values of the bonds if your required

asked by Yatie on August 28, 2015
57. Economics

Hypothetical Economy: -Money Supply= \$200 billion -Quantity of money demanded for transactions=\$150 Billion -Quantity of money demanded as an asset=\$10 billion at 12% interest -increaseing by \$10 billion for each 2 percentage point fall in the interest

asked by Frank on January 29, 2007
58. algebra

A student has a number of \$40 and \$ 80 savings bonds to use for part otf their college expence.The total value of bonds is \$1160.There are 5 more \$40 bonds than \$80 bonds.How many of each type of bonds she have?

asked by Anonymous on June 14, 2012
59. Chemistry

How many pi bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
60. Chemistry

How many pi bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
61. Chemistry

How many pi bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
62. Chemistry

How many pi bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
63. Biology

. The covalent bonds between the monomers of an enzyme macromolecule are A. glycosidic bonds. B. peptide bonds. C. phosphodiester bonds. D. ester bonds. I thimk it is B

asked by Dulce on July 13, 2014
64. Chemistry

How many pi bonds and sigma bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
65. Chemistry

How many pi bonds and sigma bonds are in ritalin. I counted 4 pi bonds(double bonds), and 18 sigma bonds(single bonds> I want to make sure I didn't miss count anything.

asked by Kristy on November 14, 2010
66. math/fractiom

One-fifth of your art-supply money goes for brushes. If you also spend 1 2 of your money on paint, what fraction of your money will you have left?

asked by shianne on November 16, 2014
67. math

1/5 of your art-supply money goes for brushes. If you also spend 1/2 of your money on paint, what fraction of your money will you have left?

asked by anon on July 30, 2015
68. math

One-fifth of your art-supply money goes for brushes. If you also spend 12 of your money on paint, what fraction of your money will you have left?

asked by anon on July 30, 2015
69. Economics

1. Why is representative money more useful than commodity money? B. Representative money has value because the government says it does. C. Representative money exists in unlimited supply, so more people use it. D. Representative money is portable, durable,

asked by Anonymous on June 4, 2012
70. Algebra

Ernest receives \$555 per year from his \$7000 investment in municipal and corporate bonds. His municipal bonds pay 6% and his corporate bonds pay 9%. How much money is invested in each type of bond

asked by Gman on April 1, 2011
71. Physics

A circuit consists of a resistor of R=7 Ω, a capacitor of C=7 μF, and an ideal self-inductor of L=0.04 H. All three are in series with a power supply that generates an EMF of 5sin(ωt) Volt. The internal resistance of both the power supply and the

asked by Annoyingmous on May 22, 2013
72. Finance

A company is planning to set aside money to repay \$100 million in bonds that will be coming due in 10 years. If the appropriate discount rate is 9%, a. how much money would the company need to set aside at the end of each year for the next 10 years to be

asked by Jessy on April 1, 2017
73. English

1. to feel happy because you are with someone, or have something. (What is a suitable English word for the definition?) 2. I am not interested in music at all. 3. I don't take interest in music at all. (Are both the same and grammatical?) 4. I don't spend

asked by John on September 12, 2009
74. Macroeconomics

Assume that the economy’s real GDP is growing. What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money

asked by John on June 15, 2010
75. Macroeconomics

The effectiveness of monetary policy depends on how easy it is for changes in the money supply to change interest rates. By changing interest rates, monetary policy affects investment spending and the aggregate demand curve. The economies of Albernia and

76. Econ

If an oil pipeline shuts down in Alaska, how does that affect the market for gasoline? demand increase, decrease or supply increase, decrease

77. Microeconomic

1. Supply and Demand. Elasticities. Suppose you have the following information about the supply and demand in the market: QD = 15000 – 500*P QS = -6000 + 3000*P a. What is the equilibrium price and quantity? b. What would be the combination of price and

asked by Kimi on September 25, 2018
78. financail Management

In Area O, there will be more savers than spenders. Old people have usually accumulated more wealth and usually tend to have it in more conservative investments (i.e. fixed income instruments), whether they be bank deposits, bonds, etc. In Area Y, people

asked by Anonymous on May 21, 2011
79. Civics

The Federal Reserve has a number of ways to influence the supply of money. The Federal Reserve can influence the interest rate that people pay on their loans, regardless of what bank they are using. How might the Fed adjust the interest rate if it wanted

asked by Carla on May 24, 2017
80. civics

The Federal Reserve has a number of ways to influence the supply of money. The Federal Reserve can influence the interest rate that people pay on their loans, regardless of what bank they are using. How might the Fed adjust the interest rate if it wanted

asked by Nani on June 1, 2015
81. Macroeconomics

(Supply and Demand) How do you think each of the following affected the world price of oil? (Use basic supply and demand analysis.) a. Tax credits were offered for expenditures on home insulation. b. The Alaskan oil pipeline was completed. c. The ceiling

asked by karo on September 6, 2006
82. investments

I would like to know what are the best website to buy and sell stocks online at a very low price. I never done it before, and i am just a biginner so can you please tell me You ask a good question, I think. Buying stocks cheaply does have obvious

asked by emma82 on July 24, 2007
83. civics banking

The Federal Reserve has a number of ways to influence the supply of money. The Federal Reserve can influence the interest rate that people pay on their loans, regardless of what bank they are using. How might the Fed adjust the interest rate if it wanted

asked by Anonymous on May 26, 2017
84. SCIENCE

Please see if I have the right answer. The three atoms in a water molecule are held together by oxygen bonds, covalent bond, surface tension, hydrogen bonds, or gravity. I think it's covalent bonds. Am I right? Water molecules, even inflowing water, can

asked by Pat on December 8, 2006
85. Macroeconomics

Suppose the Fed wishes to use monetary policy to close an expansionary gap. a. Should the Fed increase or decrease the money supply? b. If the Fed uses open-market operations, should it buy or sell government securities? c. Determine whether each of the

asked by gerima on October 11, 2006
86. English

1. He spent a lot of money on dancing. 2. He spent a lot of money in dancing. 3. He spent a lot of money on buying things at the shop. 4. He spent a lot of money in buying things at the shop. 5. He spent a lot of money dancing. 6. He spent a lot of money

asked by rfvv on December 9, 2012
87. Macroeconomics

If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will first turn to the: A) other member banks and borrow at the federal funds rate. B) Fed and borrow at the discount rate. C) open market and borrow money

asked by Steve An on June 7, 2010
88. Social studies

1. What event would most likely cause an increase in sales A. Decrease in price B. Increase in supply C. Decrease in product quality D. Increase in quality product Answer: A 2. What is stated by the law of supply A. An increase in price will cause a

asked by HELPPPPP SOCIAL on April 12, 2017
89. Economic Question

Sorry, this is a little long, hope somebody could give me some help. Thanks in advance. Consider the exchange rate of the dollar for the euro. Suppose that the liquidity function L(i) is the same in both the United States and Europe. The United states and

asked by Leo on June 21, 2008
90. Math

formulate but do not solve the linear programming problem. Tracy has at most \$200,000 to invest in stocks,bonds, and money-market funds. She expects anual yields of 15%, 10%, and 8%, respectively, on these investments. If Tracy wants at least \$50,000 to be

asked by Stacy on March 1, 2013
91. Composition

Looking for guidance. Below are two paragraphs I wrote concerning how interest rates affect our purchasing. The first sentence in each I have identified as my topic sentence. I question if the major points are stated clearly; are supported by specific

asked by Jim on January 23, 2011
92. Economics

List the various causes of inflation and determine if they are an injection or a leakage. Demand-pull theory: This is a leakage. If all sectors in the economy try to buy more than the economy can produce, people may start to rely on imports. Therefore,

asked by David on March 8, 2011
93. MATH- CHECK

BUYING A WEDDING RING- AREA? BUYING DIRT FOR S POTTED PLANT- VOLUME? BUYING PAINT FOR BEDROOM CEILING- PERMETER?

asked by Celest on June 6, 2012
94. chemistry

Describe the role of each of the following types of bonds in a polyamide: a) covalent bonds b) amide bonds c) hydrogen bonds

asked by Mark on May 10, 2008
95. Macroeconomics

working on homework & stuck on these three questions. Someone please check if I answered these correctly; Thank you! 1. In the event of excess supply in the coffee market __________. A. the price of coffee will increase B. the price of coffee will decrease

asked by Beth on April 4, 2015
96. ECONOMICS

1) If the price of a product produced in a competitive market increases, which of the following is most likely to occur in the labor market for workers who produce the product? A) the demand for labor and the number of workers hired both increase B) the

asked by Booker Perry on July 19, 2012
97. ECONOMICS

PLEASE HELP ME WITH THESE!!!!!!!! 1) If the price of a product produced in a competitive market increases, which of the following is most likely to occur in the labor market for workers who produce the product? A) the demand for labor and the number of

asked by Booker Perry on July 19, 2012
98. Macroeconomics

suppose that this year's money supply is \$500b, nominal gdp is \$10trillion, and real gdp is \$5trillion, what is the price level and velocity of money? and if velocity is constant and the economy's output rises by 5% per year, what will happen to nominal

asked by Liyyah on April 11, 2010
99. linear equation

john invested \$4000 into stocks(s) and bonds(b). The stocks earned 7% interest. the bonds earned 9% interest. if the investment earned \$300, how much money did john have in stocks and bonds. my question- how do I write this formula so I can find the answer

asked by Jess on January 22, 2015
100. macroeconomics

What would happen to money demand, the money supply and the price level if there were a positive shock to production?

asked by jiji on April 4, 2008