What is a dealer reserve and the 2 ways it can be paid by a bank?
What is a dealer reserve and the 2 ways it can be paid by a bank?
Homework Answers
A dealer reserve is a commission payment by a bank to a dealer who has assisted in origination of a loan which is financed by the bank. It is kind of a channel commission.
It can be paid as an upfront commission by the bank. Alternatively it can also extend soft loans to the dealer at preferable interest rates and this can be also used to make the channel commission payment.
1. In what ways are the bank of japan and the bank of England similar to the federal reserve? 2 .In what ways are the ba...
1. In what ways are the bank of japan and the bank of England similar to the federal reserve? 2 .In what ways are the bank of Japan and the Bank of England significantly different from the federal reserve? 3.Critics of the Bank of Japan argue that it played a role in the global financial crisis. What do these critics argue A. The bank of Japan raised interest rates too quickly as the crisis was beginning. B. The bank of...
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve...
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by ________, and the money supply can increase by as much as ________. A. $90,000; $900,000 B. $80,000; $800,000 C. $10,000; $100,000 D. $90,000; $1,000,000
David Wheelock of the Federal Reserve Bank of St. Louis describes the following episode at the...
David Wheelock of the Federal Reserve Bank of St. Louis describes the following episode at the beginning of the Great Depression: Following the stock market crash[of October 1929], the Federal Reserve Bank of New York used open market purchases [of Treasury securities] and liberal discount window lending [to commercialbanks] to inject reserves into the banking system. . . . The Federal Reserve Board reluctantly approved the New York Fed's actions ex post, but many members expressed displeasure that the New...
1. Why was the Federal Reserve System set up with twelve regional Federal Reserve Banks, rather...
1. Why was the Federal Reserve System set up with twelve regional Federal Reserve Banks, rather than one central bank as in other countries? 2. Which entities in the Federal Reserve System control the discount rate? Reserve requirements? Open market operations? 3. In what ways can the regional Federal Reserve Banks influence the conduct of monetary policy? 4. How is the president of the United States able to exert influence over the Federal Reserve?
What do you think the Federal Reserve Bank did to the reserve requirement during the Great...
What do you think the Federal Reserve Bank did to the reserve requirement during the Great Recession of 2008–2009? (1.5 Marks
Bank A has $1.2 million in reserve and $10 million in deposit. The required reserve ratio...
Bank A has $1.2 million in reserve and $10 million in deposit. The required reserve ratio is 10%. If bank A loses $200,000 in reserve, by what dollar amount is it reserve deficient?
Central Banking and the Federal Reserve System 1. What were the first central banking institutions, and...
Central Banking and the Federal Reserve System 1. What were the first central banking institutions, and how did central banking initially develop in the United States? 2. Where did responsibilities for monetary and banking policies rest in the absence of a U.S. central bank in the nineteenth and early twentieth centuries? 3. What motivated Congress to establish the Federal Reserve System? 4. Why did Congress restructure the Federal Reserve in 1935? 5. Who makes the key policy decisions at the...
what are the primary objective of South African reserve bank formulate and implement monetary policies 2....
what are the primary objective of South African reserve bank formulate and implement monetary policies 2. maintain financial stability.3 all of above 4 none of above
In March 2020, the European Central Bank, the Bank of Canada, and the Federal Reserve (and...
In March 2020, the European Central Bank, the Bank of Canada, and the Federal Reserve (and other central banks) began to consider measures to address the economic consequences of the Covid-19 virus. These measures might include A. buying government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements B. selling government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements C. buying government securities, decreasing the bank rate, and relaxing...
When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking...
When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant. increase; decreases increase; increases decrease; decreases decrease; increases
1. Why was the Federal Reserve System set up with twelve regional Federal Reserve Banks, rather than one central bank as in other countries? 2. Which entities in the Federal Reserve System control the discount rate? Reserve requirements? Open market operations? 3. In what ways can the regional Federal Reserve Banks influence the conduct of monetary policy? 4. How is the president of the United States able to exert influence over the Federal Reserve?
Central Banking and the Federal Reserve System 1. What were the first central banking institutions, and how did central banking initially develop in the United States? 2. Where did responsibilities for monetary and banking policies rest in the absence of a U.S. central bank in the nineteenth and early twentieth centuries? 3. What motivated Congress to establish the Federal Reserve System? 4. Why did Congress restructure the Federal Reserve in 1935? 5. Who makes the key policy decisions at the...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago