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Art [367]
3 years ago
8

the money supply decreases when the fed sells treasury bonds. the smaller the reserve requirement, the larger the decrease will

be
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

The smaller the reserve requirement, the larger the decrease will be in required reserves.

<h3>What is the reserve requirement?</h3>

The reserve requirement is the percentage of consumer's deposits that are kept as reserves with the Central Bank. The reserve requirement is determined by the reserve ratio.

When the Fed sells treasury bonds, money supply decreases. This is known as a contractionary monetary policy.

To learn more about reserve requirement, please check: brainly.com/question/25812353

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"Easy Rider Inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. Interest is paid annually. After flotation
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3 years ago
If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the followin
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b. increases the balance of an liability account

Explanation:

Every transaction in the accounting must satisfy the balance of of Accounting Equation. The transaction which behave abnormally is always a wrong transaction. A debit portion in adjusting entry is to increase the balance of expense account. On the other hand credit entry should settle to make the accounting equation balance and show the correct effect of the transaction on both accounts.

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The precautionary principle

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When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criter
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When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria : Trade-offs

<h3>What is trade-offs?</h3>

A trade-offs is when one must choose between two or more things, selecting the best option given available constraints. It a choice that must be made due to scarcity.

Trade-offs are also alternatives that must be given up when one choice is made rather than another.

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