Answer:
have been granting greater independence to their central banks.
Explanation:
In modern times, the world is getting faster and the concept of open market economies is emerging globally. To cope with this system, governments all over the world are giving their central banks more and more freedom so they can control and operate the market forces to some extent.
Governments know that their interference will only lead to slow and inefficient operations, which can lead to problems in over all system.
Answer:
If the company follows the residual dividend policy, it is $50,000 in dividends.
Explanation:
Dividend is calculated by using the formula:
Dividends = Net Income - Equity requirement
where, Equity requirement = Capital budget (% Equity)
= 500,000(70%) = $350,000
∴ Dividends = 400,000 - 350,000
= <u>$50,000
</u>
Answer: conclusions for each option studied
Explanation:
A recommendation report is a report that is used to propose solution to a particular problem; then, the best solution will then be chosen after the solution has been proposed.
We should note that before a solution is proposed, the first thing to do is to identify the problem in order to know the root cause of what's happening. Then, a conclusion will then be made for the options that were studied.
Answer:
a. True
b. False
c. True
d. True
Explanation:
a. True, The least-leveraged industries have the highest TIE ratios.
b. False, U.S. firms have more debt and less equity than Germany or Japan.
c. True, Italy and Japan use more debt than the United States and Canada.
d. True, Management attitude influences the amount of debt that a firm takes on.
Answer:
c. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented.
Explanation:
A monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
Generally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).
Typically, a monetary policy can be implemented quickly by the central bank of a particular country, but most of its impact on aggregate demand occurs months after policy is implemented.
