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suter [353]
1 year ago
14

When the federal reserve purchases a government bonds from banks, reserves in the banking system ________ and the monetary base

________, everything else held constant.
Business
1 answer:
Semmy [17]1 year ago
7 0

When the federal reserve buys government bonds from banks, the monetary base and banking system reserves <u>both increases</u> while keeping all other factors constant.

The Federal Reserve, sometimes known as the Fed, is the most influential economic organization in the United States and maybe the whole world. Its primary duties include controlling the money supply, determining interest rates, and overseeing the financial markets.

In exchange for monthly interest payments, a bondholder lends money to a business or the government for a predetermined period of time. When the bond matures, the bond's issuer pays the investor its money back.

The Fed will buy bonds from banks to increase the amount of cash available, which will provide funds to the banking sector. The Fed will remove capital from the banking system by selling bonds to banks in order to reduce the amount of money in circulation.

Learn more about Federal Reserve

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Sehun (1986) finds that the practice of monitoring insider trade disclosures, and trading on that information, would be Group of
mart [117]

Answer:

not sufficiently profitable to cover trading costs.

Explanation:

Hasan Nejat Seyhun, a professor of Finance, in 1986, in his research study titled "Insiders' profits, costs of trading, and market efficiency" investigates the unusual findings of the previous insider trading studies, that suggests that, any investor can earn abnormal profits by reading the Official Summary.

Hence, he concluded that, that the practice of monitoring insider trade disclosures, and trading on that information, would be not sufficiently profitable to cover trading costs.

5 0
3 years ago
Sally and Alicia are equal general partners In a business. They are content with their current management and tax situation but
AlladinOne [14]

Answer: Limited liability company

Explanation: It refers to a hybrid structure for firms which have the characteristics of both company and partnership. The limited liability characteristics is a feature of a company while the tax treatment is done as similar to a partnership.

In the given case, Sally and Alicia are equal general partners and wants to change their unlimited liability structure.

Hence from the above we can conclude that the correct option for them is limited liability company.

4 0
3 years ago
Question 9(Multiple Choice Worth 5 points) (04.03 LC) In our culture, one recent fatal event is common and does not affect the i
V125BC [204]

The pandemic and measures were taken to control the spread disease have significantly disrupted economic activity in countries around the world, resulting in significant business interruption losses.

<h3>What was the impact of pandemic over the insurance businesses?</h3>

Businesses across many sectors of the economy faced major decline in the revenue during the pandemic due to which government direct them to close their businesses.

Insurers and their associations around the world stated that most of the policyholders have not acquired insurance coverage which will respond to the business interruption losses that result from pandemic business closures.

Business interruption insurance against pandemic risk could be provided with support from governments based on the experience of risk insurance programs.

Learn more about the insurance business here:-

brainly.com/question/24034584

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5 0
2 years ago
The following information relates to the Fowler Company for 2014: Beginning accounts receivable 5,000 Credit Sales 40,000 Ending
Komok [63]

Answer:

$38,000

Explanation:

The amount of cash collections would be computed as;

Cash collections = Beginning accounts receivable + Credit sales - Ending accounts receivable

Where;

Beginning accounts receivable = $5,000

Credit sales = $40,000

Ending accounts receivable = $7,000

Therefore,

Cash collections = [($5,000 + $40,000) - $7,000]

Cash collections = $38,000

7 0
3 years ago
Distinguish between economic and accounting profit
Masja [62]

Answer:

The main difference between accounting and economic Profit is that accounting profit refers to monetary revenue minus monetary costs which includes any type of cost in the organization in the form of rents, salaries, material costs etc. Economic profit refers to the monetary revenue minus total cost.

Explanation:

8 0
2 years ago
Read 2 more answers
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