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suter [353]
11 months 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]11 months 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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vovikov84 [41]
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5 0
3 years ago
For important management positions companies often use​
natali 33 [55]

Answer:

The correct answer would be Specialized Executive Search Firms.

Explanation:

When companies hire employees, they usually use the conventional methods of recruitment, like giving ads in newspapers or pasting ad on a social job site, etc. But when employees for the important management positions are required to hire, companies often use Specialized Executive Search Firms. These are the recruitment firms which takes the demands of the employer and search for the best of the best candidates to be interviewed by the employers. Such firms have fine data about the best candidates in their databases which updates regularly. Also, after selecting the candidates, they first take initial interviews of the potential employees themselves and then route them to the employer.

4 0
3 years ago
Regarding the overall effect of negative interest rates on the economy, economists
vova2212 [387]

Answer:

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Explanation:

Answer C is partially correct.  In reality, experiments are running on economies as today:  Greece economy.  After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back.  This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy:  customers will go for profit, not cost.  

The effect of this model is negative on the economy since it will not provide enough resources for stimulation.  Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.

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Radda [10]

Answer:

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2 . Current portion of long-term debt - Current liability

3 . Sales tax collected from customers - Current liability

4 . Notes payable due next year - Current liability

5 . Notes payable due in two years - Long-­term liability

6 . Advance payments from customers - Current liability

7 . Commercial paper - Current liability

8 . Unused line of credit - Disclosure note only

9 . A contingent liability that is probable likelihood of occurring within the next year and can be estimated - Current liability  

10 . A contingent liability that is reasonably possible likelihood of occurring within the next year and can be estimated - Disclosure note only

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