By what authority was the creation and existence of a u. S. National bank deemed legitimate?.

The reserve requirement is 10%. Suppose that the Fed $ worth of U.S. government securities a bond dealer, electronically the

victus00 [196]

Answer:

D. The money supply decreases by $150,000.

Explanation:

Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:

The reserve requirement is 10%.

Suppose that the Fed sells $150,000 worth of U.S. government securities from a bond dealer, electronically debiting the dealer's deposit account at Reliable Bank.

Which of the following correctly describes the immediate effect of this transaction on the money supply?

A. The money supply decreases by $1,500,000

B. The money supply decreases by $135,000.

C. There is no change in the money supply.

D. The money supply decreases by $150,000.

E. None of the above.

The explanation to the answer is now provided as follows:

This is an example of Open market operations (OMO).

Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.

When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.

On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.

From the question, the sale of $150,000 worth of U.S. government securities from a bond dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.

Therefore, the correct option is D. The money supply decreases by $150,000.

8 0

3 years ago

Imagine you are looking at a bottle of salad dressing containing oil, vinegar, and water. you notice that the oil sits on "top"

user100 [1]

The oil is denser
the water and vinegar are not as dense

4 0

4 years ago

Were Social Security and Medicare the largest contributors of revenue for the federal government in Fiscal Year 2019? Explain.(1

Bingel [31]

It is false because the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

<h3>What is an Income tax?</h3>

These are tax imposed on earned income by people in a country while the Social Security and Medicare taxes are imposed on people income while working as well.

However, the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

Therefore, the Option C is correct.

Read more about Income tax

<em>brainly.com/question/26316390</em>

#SPJ2

5 0

2 years ago

Read 2 more answers

The period manufacturing costs of a company is comprised of $2,000,000 in direct materials, $1,000,000 in direct labor, and $500

shutvik [7]

Answer:

The Direct material cost per unit is = 285.714 per unit

The Direct labor per unit is= 142.857 per unit

The Overhead cost per unit is = 71.4285 per unit

Explanation:

Solution

We recall that:

The total direct material= $2000000

The total direct labor= $1000000

The units in products = 7000 units

The total Overheads= $500000

Now,

The direct materials on machinery is = $ 800,000(40%)

The direct labor on machinery is= $ 600,000(60 %)

The machinery on overheard is = $ 250,000(50 %)

The direct materials on assembly is = $ 1200,000

The Direct labor on assembly is = $ 400,000

The Overhead on assembly is = $ 250,000

Thus,

The hybrid manufacturing cost statement is represented or shown below

Particular Machinery (40%)in $ Assembly (60%)in $ Total in $

Now,

Particular = Direct material,

Machinery (40%)in $ = 800000

Assembly 60% in $ = 1200000

Total in $ =2000000

Grand total = 1650000

Particular = labor

Machinery (40%)in $ = 600000

Assembly 60% in $ = 400000

Total in $ = 1000000

Grand total = 1850000

Particulars = Overhead

Machinery (40%)in $ =250000

Assembly 60% in $ = 250000

Total in $ = 500000

Grand total = 3500000

Thus,

The Direct material cost per unit = 2000000/7000 = 285.714 per unit

The Direct labor per unit = 1000000/700 = 142.857 per unit

The Overhead cost per unit = 500000/7 = 71.4285 per unit

3 0

3 years ago

Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year. Sales revenue is $

notka56 [123]

Answer:

Sheffield Company

Inventory Turnover Ratio = Cost of goods sold/Average Inventory

= $1,145,400/$138,000

= 8.3 times

Explanation:

a) Data and Calculations:

Beginning inventory = $145,000

Ending inventory = $131,000

Average inventory = (Beginning inventory + Ending inventory)/2

= ($145,000 + 131,000)/2

= $138,000

Sales revenue = $1,972,800

Cost of goods sold = $1,145,400

Net income = $248,400

b) The inventory turnover ratio for Sheffield Company is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period. This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year. When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.

7 0

3 years ago