Consider a world in which there is no currency?
Consider a world in which there is no currency and depository institutions issue only checkable deposits and desire to hold no excess reserves. The required reserve ratio is 20%. The central bank sells $1 Billion in government securities. What happens to the money supply?
Why did President Nixon take the U.S. Dollar off the gold standard in 1971?
Federal Reserve & there desire to print more money charged at interest when borrowed by the Government & abandoning Gold Standard guarantees inflation. Under the gold standard, a government is limited – both legally and practically – as to how much paper money it can print. As recently as the Lyndon Johnson administration, the U.S. could print paper dollars equal only to four times the value of the nation’s gold reserves. Under the gold standard, governments that print too much paper money risk runs on their gold reserves. Runs occur as holders of the paper seek to convert to gold before the vaults are empty. A run on the dollar is what happened in the late 1960s, which culminated in President Richard Nixon closing the gold window in 1971. "Closing the gold window" is a euphemism for the U.S. defaulting on its promise to other countries to redeem dollars for gold. As an alternative, Nixon could have devalued the dollar and continued to redeem. In effect, he chose a one hundred percent devaluation, a de facto default on the promise to redeem. In the 34 years before Nixon closed the gold window, the money supply in the U.S. grew less than two fold. In the 34 years after Nixon’s action, the money supply expanded 13 fold and the Fed Reserve has taken the US gold.
Information on Japans Import, Export, and many other?
I'm doing a project on Japan. I need to find out what japan imports from what countries, and what japan exports to what countries. I tried to look it up on the internet but all of the sites i went to was very broad. Any information will help, and maybe some links. Thanks!!
Where does the money go right after it's printed?
Currently, the US government maintains over 800 billion US dollars in cash money (primarily Federal Reserve Notes) in circulation. The amount of cash in circulation is increased (or decreased) by the actions of the Federal Reserve System. Eight times a year, the 12-person Federal Open Market Committee meet to determine US monetary policy. Every business day, the Federal Reserve System engages in Open market operations to carry out that monetary policy.If the Federal Reserve desires to increase the money supply, it will buy securities (such as US Treasury Bonds) anonymously from banks in exchange for dollars. Conversely, it will sell securities to the banks in exchange for dollars, to take dollars out of circulation. When the Federal Reserve makes a purchase, it credits the seller's reserve account (with the Federal Reserve). This money is not transferred from any existing funds – it is at this point that the Federal Reserve has created new high-powered money. Commercial banks can freely withdraw in cash any excess reserves from their reserve account at the Federal Reserve. To fulfill those requests, the Federal Reserve places an order for printed money from the US Treasury Department. The Treasury Department in turn sends these requests to the Bureau of Engraving and Printing (to print new dollar bills) and the Bureau of the Mint (to stamp the coins). Read more: http://www.answers.com/topic/united-stat...