1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
maria [59]
2 years ago
5

Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government

securities to commercial banks (paid for out of commercial bank reserves) and buys $500 of securities from individuals, who deposit the cash in checking accounts. as a result of the given transactions, the supply of money in the economy will
Business
1 answer:
mel-nik [20]2 years ago
7 0

The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = (  value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2)  = 0

To learn more about reserve ratio, please check: brainly.com/question/6831267

#SPJ1

You might be interested in
Imagine you are the owner of a small local peanut butter company. You have many competitors in the peanut butter market but your
mamaluj [8]

Answer:

A

Explanation:

keeping a competitive edge

8 0
2 years ago
What is one course of action available in every problem solving process
OLga [1]
You must consider both consequences, the positive and the negative. Then you must think of a way that you will have a win-win situation or just do the compromising to be able to solve the problem and have a faster solving process.
8 0
3 years ago
Can anyone figure this out with a file link
Gnom [1K]

Answer:

Tells us we need to download something, sorry mate.

Explanation:

5 0
3 years ago
Advertising is NOT a good way to find harmful information about a product because a. it is not endorsed by the government. b. th
leonid [27]
C. Only favorable information is likely to appear
6 0
3 years ago
July 15 Declared a cash dividend payable to common stockholders of $166,000. August 15 Date of record is August 15 for the cash
Anna35 [415]

While the organization declares the dividend it will create a liability for the employer. legal responsibility is already created whilst the dividend is said on 15 July, therefore there may be no want to file the magazine access again on 15 August.

A cash dividend is the distribution of finances or cash paid to stockholders generally as part of the employer's cutting-edge earnings or amassed profits. cash dividends are paid directly in money, instead of being paid as a stock dividend or a different form of price.

Dividend earnings are described by using the IRS as any distribution of an entity's assets to its shareholders. whilst they are generally cash, dividends can also be in the form of stock or some other property. typically dividend earnings are the distribution of an organization's taxable profits to its investors.

To be eligible for dividends, you need to be preserving the inventory in your Demat account on the report date of the dividend issue. You must have offered the stock at least someday before the ex-date so that the stocks are brought for your Demat account with the aid of the report date.

Learn more about cash dividend here: brainly.com/question/25845157

#SPJ4

5 0
2 years ago
Other questions:
  • You have a credit card with a balance of $10,900 and an APR of 17.1 percent compounded monthly. You have been making monthly pay
    9·2 answers
  • EASY 20 POINTS
    5·1 answer
  • A strategic business unit​ (SBU) of a major corporation has high market share in its​ industry, but the growth rate of the indus
    11·1 answer
  • After cost overruns of the electric project, $20 million was already spent and unrecoverable. it was going to cost $12 million m
    9·1 answer
  • A service is any intangible offering that involves a deed is called
    10·2 answers
  • Which of the following is an example of a strategic action?
    12·1 answer
  • If nike started selling new shoes
    5·2 answers
  • Jones Company bought Wood Company in 2020 and appropriately recorded $750,000 of goodwill related to the purchase. On December 3
    11·1 answer
  • Christopher is a licensed sales agent sponsored by Coastal Realty in Corpus Christi, Texas. Jose has been a real estate broker i
    8·1 answer
  • Privately owned media companies in the United States earn most of their revenue from a. subscriptions. b. charitable donations.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!