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1 year ago

If the fed wants to raise the federal funds rate by one-half of a percentage point, it should _____

Business

1 answer:

Assoli18 [71]1 year ago

8 0

If the fed wants to raise the federal funds rate by one-half of a percentage.

The bank should reduce the reserves by $50 billion.As initiallly the supply curve of reserves is S11 , when the supply decreases to S12 , it leads to the increase in the feds funds rate to 6.

Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other monetary establishments deposit at local Federal Reserve banks; these funds may be lent, then, to different market individuals with inadequate cash available to satisfy their lending and reserve wishes.

The Federal Reserve raised the goal range for the fed budget fee by way of at some point of its assembly, the fourth consecutive rate hike, and pushing borrowing charges to the highest level considering the fact that matching market forecasts.

Federal budget are reserves held in a financial institution's Federal Reserve bank account. If a financial institution holds extra fed funds than is required to cover its law D reserve requirement, those excess reserves may be lent to some other financial organization with an account at a Federal Reserve bank.

Learn more about federal funds here:- brainly.com/question/6270391

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Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p

amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

5 0

4 years ago

Discuss the effectiveness of Red Bull sponsorships, advertisements, personal selling strategies, promotion, events, and public r

Molodets [167]

Answer:

Explanation:

Red bull engaging in sponsorship shows they are utilizing the well packaged Red bull's marketing budget. But there should be some level of caution in either co- sponsoring or being the sole sponsor for certain sports, especially sports with high risk or danger. While sponsoring stunts like Bull stratos is a good way to make high publicity for their brand (Red bull) but if something bad happens in the course of the stunts, the brand could be connected to the tragedy which would be an everlasting bad label on the company. The company might be seen as insensitive for sponsoring such a sport that involves high risk.

Red bull sponsors X-treme sports and as a results of this sponsorship their brand have enjoyed having more time of product exposure and placement because the sponsorship will give the brand more attention with the consumers.

While it is good they go on with their various sponsorships, they must also be careful on some sports or events that involves high risk.

8 0

3 years ago

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor superv

Ivenika [448]

Answer:Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. Ricardo's opportunity cost is choosing the promotion over time with his friends.

<u>Explanation:</u>

When there are many options in front of us.Out of these options when we select one we have to forgo the other options. While we forgo other options we have to bear the loss. So the opportunity cost is the cost of the next best option that we have given up.

if Ricardo works extra hours than he will not get time to spend with his friends so this is his loss which is arising due to the benefit he is getting from promotion. This loss will be his opportunity cost.

8 0

3 years ago

Willow Wanderer Cameras Inc. reported the following results for the year ending October 31, 20Y9: Retained earnings, November 1,

ANTONII [103]

Answer:

The statement would be:

Date: October 31, 2019

Net Income $680,700

Cash dividends $50,000

Stock dividends $127,000

Retained earnings $503,700

The retained earnings are equal to the sum of declared dividends substracted from the net income.

3 0

3 years ago

Jabari Manufacturing, a widgets manufacturing company, divides its production operations into three processeslong - Department

lora16 [44]

Answer:

Cost per unit of widget produced = $6.52

Explanation:

As for the provided information:

Total units produced = 4,600 units

Total cost of production = costs for Department 1 + Department 2 + Department 3

= $18,000 + $8,000 + $4,000 = $30,000

It does not matter how many units are sold as the cost of sales will include, selling and administrative cost also.

Therefore, all the cost will be considered.

Thus total cost of production = $30,000 for 4,600 units.

Cost per unit of widget = $\frac{30,000}{4,600} = 6.52$

5 0

3 years ago