I need ASAP in 5 min just final answers 42) 43) 44) 45) 46) 47) 48) 49) 50) 51)

Question

I need ASAP in 5 min just final answers 42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 42) The "lemons problem" in the used car market arises from A) the difficulty US. producers have in making reliable cars B) the tendency of buyers of used cars to pay for them with bad checks C) the reluctance of many car dealers to handle used cars D) the difficulty buyers have in distinguishing good cars from lemons ) A sale of foreign assets by a central bank has the same effect on the monetary basea A) an open market purchase of government bonds. B) an open market sale of government bonds C) a decrease in the discount rate. D) a decrease in the required reserve ratio. 44) Financial markets A) channel funds directly from lenders to borrowers B) generally provide lenders with lower returns than do financial intermediaries C) channel funds indirectly between borrowers and lenders D) act as go-betweens by holding a portfolio of assets and ?wing daims based on that portolio to savers. 45) If banks hold no excess reserves, checkable deposits total $1.5 billion, currency totails $400 million, and the required reserve ratio is 10%, then the monetary base equals A) $1.54 billion. B) S15 billion $1.9 billion D) 5550 milion 46) A bank with insufficient reserves can increase its reserves by A) lending federal funds. C) buying municipal bonds B) calling in loans. D) buying short-term Treasury securities 47) Which investment bank avoided bankruptcy by being purchased by Bank of America in A) Bear Stearns B) Lehman Brothers Morgan Stanley D) Merill Lynch 48) If the Fed sells $1 million worth of securities and the required reserve ratio is 10%, by how much will deposits increase (assuming no change in excess reserves or the public's curency holdings)? A) rise by $1 million C) rise by $12.5 million B) decline by $10 million D) rise by $8 million 49) Discount loans intended for banks that are not financially healthy are called A) repo loans B) seasonal credit. Q) secondary credit D) primary credt 50) What was the main goal of Fed's Quantitative Easing (QE)? A) to increase long-term interest rates B) to reduce both short-term and long-term interest rates C) to reduce only short-term interest rates D) to reduce only long-term interest rates ) whenever a central bank allows the monetary base to respond to the sale or purchase of domestic B) whenever a central bank fails to reduce its holdings of gold by the amount of a foreign-exchange forei intervention occurs 51) An unsterilized f pu C) whenever a central bank purchases or sells foreign currency D) whenever a central bank purchases or sells domestic currency the A) the bond supply curve will shift to the right and the real interest rate will fall D) the bond supply curve will shift to the left and the equilibrium interest rate will tall

Explanation / Answer

42) D is correct

Lemons are bad used cars and it refers to the difficulty buyers face while distinguishing between good cars and bad cars.

43) B is correct

Open market sale of foreign assets and government bonds lead to decrease in money supply.

44) A is correct

Financial market channels funds directly from lenders to borrowers.

45) D is correct

Monetary base = currency + reserves

Reserves= 0.1(1.5billion) = 150 million

Monetary base= 400+150= 550 million

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