Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
With a decrease in input prices, the producers will be willing to produce more items, but we are unsure if consumers will be able to buy more because they drop in income; therefore, we don't know what the price will do.
Answer:
A common market
Explanation:
A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.
A monetary union has all the features of a common market and participating countries have a common currency.
I hope my answer helps you.
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Answer: Reserves and the monetary base; the money supply ( please check your options, they are not clear)
Explanation:
An open market operation (OMO) is an operation by a central bank to give lquidity to a bank or receive liquidity in its currency from a bank. A central bank uses OMO as the major means of balancing monetary policy target in terms of inflation, interest rates, or exchange rates, by purchasing or selling of government securities so as to to expand or contract money in the bank system and control interest rates.
The use of open market operations as a monetary policy tool ultimately helps the Fed pursue its dual responsibilities- improving employment and influencing prices—by controlling the supply of reserves in the banking system, which leads to interest rate changes.
Open market sales therefore shrink Reserves and Monetary base thereby lowering the Money Supply.
