subject
Business, 19.07.2019 23:20 farhan61

Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium federal funds rate is currently 1.7 percent. assume that the equilibrium federal funds rate falls (rises) by 1 percent for each $90 billion in repo (reverse repo) bond transactions the fed undertakes. if the fed wishes to lower the equilibrium federal funds rate to the bottom end of the target range, will it repo or reverse repo bonds to non-bank financial firms? how much will it have to repo or reverse repo?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 20:40
On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share
Answers: 3
question
Business, 23.06.2019 03:10
Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?
Answers: 1
question
Business, 23.06.2019 04:50
Can someone me with general journal entry on this? ?
Answers: 3
question
Business, 23.06.2019 05:10
Databases, though on the internet, only
Answers: 1
You know the right answer?
Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium fed...
Questions
question
Mathematics, 23.11.2020 22:30
question
English, 23.11.2020 22:30
question
Chemistry, 23.11.2020 22:30
question
Mathematics, 23.11.2020 22:30
Questions on the website: 13722361