Klient Banku » Economics

What would happen if changes in bank regulations expand the availability of credit cards?

Banking — Fri, 23 Apr 2010 04:52:00 +0000

Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash.

How does this event affect the demand for money?
If the Fed does not respond to this event, what will happen to the price level?
If the Fed wants to keep the price level stable, what should it do?Submited by:★♥♪♥♪♥☆ ★♥♪♥♪♥☆ ★♥♪♥♪♥☆

How can the Federal Reserve influence banks’ willingness to expand or contract the money supply?

Banking — Sat, 13 Feb 2010 12:53:40 +0000

Amy B asked:

Explain the role of banks in determining the money supply in the United States. How can the Federal Reserve influence banks’ willingness to expand or contract the money supply?

What happens to bank shares if the banks are nationalized?

Banking — Sun, 08 Nov 2009 22:47:27 +0000

If the UK government did nationalize several British banks, what would happen to the shareholders?

If shares are not suspended, are they likely to increase or decrease?

I’m thinking they would increase….Submited by:Carefree

Why are banks hurting the economy by hoarding money?

Banking — Sun, 11 Oct 2009 02:18:49 +0000

Right now, the ball is in the major banks’ court. These banks could be and should be lending money to small business most importantly and to consumers secondarily with lower interest rates and fewer restrictions. But they refuse to.

This is causing Congress, the White House and the federal reserve to continue their own “easy money” policies which will reverberate for years to come, likely causing (among other things) higher taxes.

Why are the big banks doing this? And, what needs to be done (other than what is being done) to get the big banks off their “assets” and lend more money where most needed?Submited by:Willing Parttisipunt