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2 years ago

The fed pays ______ on the required reserves held by commercial banks, as well as the excess reserves the banks hold at the fed.

1 answer:

4 0

The fed pays interest on the required reserves held by commercial banks, as well as the excess reserves the banks hold at the fed.

A frequent monetary policy tool at the disposal of significant central banks is the payment of interest on bank reserve holdings. With effect from late 2008, the Federal Reserve is now permitted by Congress to pay interest on bank balances held by the Fed. Interest has been paid since then on those sums by the Federal Reserve.

The Fed has had to raise the interest rate it pays on reserves in order to get the fed funds rate to rise, according to Wheelock, given the significant amount of deposits kept at Reserve banks. Therefore, the Fed will pay out more interest.

To learn more about Federal Reserve refer to:

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What are some positive ways you can impact your Family Circle?

Genrish500 [490]

Answer: Ask questions, help them, or do something they love

Explanation:

Some of the positive ways of impacting ones family circle is by asking questions, helping other members of our family and by doing something that they love.

We shouldn't be self centered by showing them what we love such as our favorite music, movies, and TV shows. Rather, we should listen to them and give them listening hears and always help them when there is need for our help.

The correct option is D.

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3 years ago

In which stage would you typically expect to see large negative Financing Cash Flows?

kvasek [131]

Answer:

a. Startup

Explanation:

The negative cash flows are when the firms are having more cash outflow than the cash inflow and spending of the company is more than the earning and thus experiencing a negative cash flow.

This is a situation is found in the growth phase as they demand more money to generated and spend money to fuel growth and acquire the new customers and that may be set up by the distribution channels.

Thus startup of the company or industry can show more negative cash flows.

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3 years ago

"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous

kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

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3 years ago

Once a company has prepared an adjusted trial balance it is ready to prepare financial statements. Which financial statement is

Sloan [31]

Answer:

Explanation:

There is a sequence of preparing statements of financial statements because some statements use information from other statements of financial position. The income statement does not require information from any other statements. The retained earnings need information from income statement to calculate current retained earnings. The balance sheets require information from statement of retained earnings(retained earnings for this period).

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3 years ago

Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over

avanturin [10]

Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

Dividends = 35500 - 15000

Dividends = $20500

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3 years ago