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1 year 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.

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In a 1988 study, Fama and French found that the return on the aggregate stock market was __________ when the dividend yield was

Lisa [10]

Answer:

A. higher

Explanation:

Fama And French did the risk factor study on stock, which clearly stated that when there is a high dividend yield then the stocks would perform good even in the market.

thus, this clearly reflects that when the market is high for stock returns then the dividend yield is also high.

This is basically the proportional reaction, as when the stock return is higher whether in terms of value addition or cash returns then only the dividend return would also be higher.

Correct option in this case will be:

A. Higher.

6 0

3 years ago

The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expec

Igoryamba

Answer:

$4,908,000

Explanation:

The computation of accumulated depreciation expense for this purchase is shown below:-

Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)

= (($40,900,000 - $4,090,000) ÷ 15) × 2

= $36,810,000 ÷ 15 × 2

= $4,908,000

Therefore for computing the depreciation expense we simply applied the above formula.

6 0

3 years ago

Which of the following activities are prohibited by the Clayton Act when they lead to less competition? Each of these answers is

mariarad [96]

Answer: All of the Above

Explanation:

The Clayton Act of 1914 was passed to curb unfair business practices as well as to protect the rights of labour.

Some practices that were prohibited when they led to less competition include,

- A firm acquiring a major percentage of the stocks of a competing firm because this could signify an amalgamation of efforts on the part of both firms and they could therefore have some control over Pricing.

-A director from one business sitting on the board of a competing firm because this could lead to cooperating or Corperate espionage.

- A buyer is forced to buy multiple products from a producer in order to get a desired product is expressly forbidden.

5 0

3 years ago

What is the purpose of tax-deferred retirement accounts?

kobusy [5.1K]

Allows individuals to set up a retirement account at financial institutions to save money for retirement. Usually has a tax free growth or tax deferred basis.

Is this free answer or is there a multiple choice?

4 0

3 years ago

To encourage borrowers to accept adjustable rate mortgages (ARMs) rather than level-payment mortgages, mortgage originators gene

antiseptic1488 [7]

Answer:

B. Teaser rate

Explanation:

Teaser rate also called introductory rate is an interest rate that is usually below market that last for a short period of time. It is the beginning rate placed on credit products. It is a form of discounted interest rate that is offered for a short period of time. The rate can be as low as 0% for that short period of time and goes back to the normal rate after the short period of time expires.

3 0

3 years ago