The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.

Answers

Answer 1

If the Federal Reserve lowers the reserve ratio, it is said to lowers the amount of cash that banks are needed to hold in reserves and thus, it gives room for them to make more loans.

Note that Lowering the reserve ratio is one that pumps money into any economy as it is said to often gives banks excess reserves, and thus leads to the expansion of bank credit and reduce rates.

What occurs if the required reserve ratio is zero?

By placing the reserve requirements to zero, the Fed will be able to bring up or increase excess reserves, and this will in turn  make the stock of liquid assets to be more eligible to meet some level of supervisory regulations and expectations.

Hence, If the Federal Reserve lowers the reserve ratio, it is said to lowers the amount of cash that banks are needed to hold in reserves and thus, it gives room for them to make more loans.

Learn more about Federal Reserve from

https://brainly.com/question/25817380

#SPJ1


Related Questions

What does Kittay mean when she argues that we should cultivate a public moral sentiment of care? How does she think that a society should go about doing this? How would you assess the need for a public moral sentiment of care?

Answers

It should be noted that Kittay argues that we should cultivate a public moral sentiment of care as it nurtures out community.

How is care important?

It should be noted that care is important in a society as it helps in the growth and development. In this case, we should always care about others on the society and loo out for them

Therefore, Kittay argues that we should cultivate a public moral sentiment of care as it nurtures out community.

She think that a society should go about doing this by showing concerns for the other people in the society.

Lastly, one can assess the need for a public moral sentiment of care by viewing the number of people who show concerns for others.

Learn more about care on:

brainly.com/question/15324435

#SPJ1

I need help answering these

Answers

Professionalism is based on respect, responsibility, carefulness, deadlines and information, learning styles involve the methods to learn, and technology has modified learning process.

What is Professionalism?

Professionalism refers to the behavior of an individual in a work context, whose good practices especially involve respect, responsibility, and carefulness.

Learning styles refer to the strategies to learn, which have been greatly enhanced due to the emergence of new technologies such as modeling systems.

In conclusion, professionalism is based on respect, responsibility, carefulness, deadlines and information, learning styles involve the methods to learn, and technology has modified learning process.

Learn more about professionalism here:

https://brainly.com/question/13964646

#SPJ1

Which person would need the most amount of collision coverage from their
auto insurance?
A. Umme is a new driver, and her parents bought her a used car that
she only drives to school.
B. Samir is a new driver, and his parents bought him a new sports car
for his 16th birthday.
C. Indira has a clean driving record, drives to work every day, and
leases a new car.
D. Harry has a clean driving record, rarely drives, and owns an older
car that he intends to replace in a few years.

Answers

Answer: B. Samir is a new driver, and his parents bought him a new sports car

for his 16th birthday.

Explanation:

Samir is a new driver, and his parents bought him a new sports car for his 16th birthday. He is at a higher risk of accidents due to inexperience and the car's speed and value, making him a candidate for higher collision coverage. Therefore, option B is correct.

What is an collision coverage?

Collision coverage is a type of auto insurance that covers damage to a policyholder's vehicle resulting from a collision with another vehicle or object.

This coverage typically pays for the cost of repairing or replacing the policyholder's vehicle, regardless of who is at fault for the accident.

Collision coverage is typically an optional coverage that policyholders can choose to add to their auto insurance policy, in addition to mandatory coverages like liability insurance.

The cost of collision coverage varies depending on the value of the insured vehicle, the deductible chosen by the policyholder, and other factors.

In general, collision coverage is more expensive than liability coverage, but it provides more comprehensive protection for policyholders in the event of an accident.

Learn more about collision coverage here:

https://brainly.com/question/4411903

#SPJ5

For your debate in a political science class, a classmate references personal experiences and news stories to strengthen her argument. which end of the argument would this be? hot hot cold cold lukewarm lukewarm

Answers

In this scenario, we can infer and logically deduce that the end of the argument which this would be is: A. hot.

What is an argumentative essay?

An argumentative essay can be defined as a type of literary work that is written to express and indicate a writer's or speaker's position (stance) on a subject matter (topic).

This ultimately implies that, when a writer or speaker engages in an argument, he or she uses a claim to strongly state and express his or her opinions about the subject matter (topic).

The types of end in argument.

In English literature, there are different types of ending in an argument and these include the following:

ColdLukewarmHot

In this scenario, we can infer and logically deduce that the end of the argument which this would be is hot because it comprises information about the speaker's personal experiences and news stories, in order to strengthen her argument.

Read more on argumentative essays here: https://brainly.com/question/22676015

#SPJ1

Describe one way in which campus sustainability proponents have addressed each of the following issues: (1) dining services, (2) institutional purchasing, (3) trans-portation, and (4) habitat restoration.

Answers

One way in which cam -pus sustainability proponents have addressed dinning services is by not getting suc- ked by student offers and embrace a mini- malist lifestyle.

What is cam- pus sustainability?

Campus sustainability simply refers to ways of encompassing human and ecological health, social justice, and secure livelihoods

Below are some other ways of campus sustainability

By stop using disposable itemsGoing digitalGet cycling.

So therefore, one way in which campus sustainability proponents have addressed dinning services is by not getting suc- ked by student offers and embracing a mini- malist lifestyle.

Learn more about sustainability:

https://brainly.com/question/1581810

#SPJ1

how long does the daily limit last

Answers

Answer:

24 HOURS

Explanation:

Because that's how life is. Your welcome

Other Questions
If one wanted to solve the equation below using the quadratic formula, what would be the b value used to substitute into the quadratic equation. 3x 2 2 = - 5x Which of the following points below is on the line defined by the two parametric equations below?x(t)=1/2t+4y(t)=2t10Group of answer choices(5,8)(6,6)(0,4)(4,10) In a quiz program, 2 questions on Science, 4 questions on History, and 4 questions on Math are printed separately on 10 cards and placed upside down. Maria is asked to select 2 cards at random. What is the probability of Maria selecting 2 questions on Science 19/23 x 50HELP ME Giving BRAINLIEST ALSO 30 POINTS Zaire is studying for final exams while writing three end-of-the-semester papers and working at a part-time job. zaire is most likely to have an increased level of the hormone:_______. Rearrange the parts of the sentence in correct order.P: him when hisQ: I was toldR: you looked afterS: end was near1. SRQP2. PQRS3. QRPS4. QRSP How did woodrow wilson try to regulate the economy? wilson attacked foreign goods and erected trade barriers against them. wilson supported a flat tax, which taxed the wealthy and the poor at the same rate. wilson attacked the tariffs, the banks, and the trusts.. Groups of 2 to 12 people who have frequent social interactions with one another are called:_________ 1. What type of waves can only travel through a medium? Both alice walker, in her poem, "even so", and shakespeare, in sonnet 116 agree that love is love only if it does what? Elizabeths property is encumbered by an easement in gross with which of these entities? Gdp that has been adjusted for changes in the price level (inflation) is called? Ownership restraints on fdi are often put into place by a host country based on concerns of? select the correct answer. What is the area of the triangle in the diagram Determine the domain and range of the function f (x) = 2 rootindex 3 startroot 108 endroot superscript 2 x. ....please help. thanks Read the quotes in the "Author's Disclosure" section of this book that help to describe theJuris Naturalist viewpoint. Look up the definition of "unalienable" in a current dictionary.Compare a current dictionary's definition with the definition from NOAH WEBSTER'S 1828DICTIONARY: "Unalienable; that cannot be legally or justly alienated or transferred to another... All men have certain natural rights which are "inalienable". Assume that each circle shown below represent one unit express the shaded amount as a single fraction and as a mixed number PLEASE ANSWER QUICKLY!!!! THE FIRST ONE GETS BRAINLIEST OR 5 STARS!!! For consecutive weeks, the manager of a local restaurant collected data on the number of cheese pizzas sold each week. The data is shown in the scatterplot below. Can the given line be used to make reasonable predictions of the number of cheese pizzas that Will be sold in upcoming weeks? Explain. (graph is below) ________________ is/are the key resource for knowing god and pursuing his plan for our lives