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liammarinewoods
25.02.2020 •
Business
Deposits of commercial banks at the Federal Reserve are called . A) bankers' acceptances B) time deposits C) repurchase agreements D) federal funds
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Ответ:
D) Federal Funds
Explanation:
Commercial banks are required to maintain reserves with their regional federal banks. For this requirement they have to make regular timely deposits with federal bank.
These deposits constitute federal funds. The Fed utilizes these funds to regulate markets and meet the demand of other market borrowers. Reserve creation with Fed requirements are determined as per the amount of customer deposits each commercial bank gets.
Customers deposit their funds with commercial banks, a proportion of which is deposited by such banks with Federal reserve to meet their reserve requirements.
Ответ:
Philip's country has followed the process of Dollarization.
Explanation:
Dollarization is the process of adopting a foreign currency instead of it own domestic currency. It is not necessary to adopt United States Dollar as your substituting currency in Dollarization. Any stable currency can be used instead of the domestic currency. Countries move towards the Dollarization when they have a weak domestic currency and they are in a threat of low buying power, and unstable economic environment. All these factors lead a country to go for substituting its domestic currency and choose a stable currency to control inflation and other unstable economic activities of the country. In this example, the value of currency of John's country depreciated over time and is expected to depreciate more in the coming months, so they went towards the process of Dollarization.