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1 year ago

To keep high inflation from eroding the value of money, monetary authorities in the united states.

1 answer:

6 0

To keep high inflation from eroding the value of money, monetary authorities in the united states control the supply of money in the economy.

<h3>What is supply of money?</h3>

The money supply in macroeconomics refers to the total volume of currency owned by the public at a certain point in time. There are various ways to describe "money," but the most common are currency in circulation and demand deposits.

The Fed can expand the money supply by decreasing bank reserve requirements, allowing banks to lend more money. In contrast, by increasing bank reserve requirements, the Fed can reduce the quantity of the money supply.

Our country's current monetary policy is expansionary, which implies that the money supply is artificially increased and interest rates are near zero. As a result, the growth rate of all dollars in circulation ("M2 Money Supply") reached a new high of 27% in 2020-2021.

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde

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Answer:

1. Dr Raw materials inventory $175,000

Cr Cash $175,000

2. Dr Goods in process inventory $138,000

Cr Raw materials inventory $138,000

3. Dr Factory overhead $7,000

Cr Raw materials inventory $7,000

Explanation:

Preparation of journal entries transactions for the month of May.

1. Dr Raw materials inventory $175,000

Cr Cash $175,000

2. Dr Goods in process inventory $138,000

Cr Raw materials inventory $138,000

($26,000+$175,000-$7,000-$56,000)

3. Dr Factory overhead $7,000

Cr Raw materials inventory $7,000

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2 years ago

From the following list of selected items taken from the records of Rosewood Appliance Service as of a specific date, identify t

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Answer:

Explanation:

We summarize the assets and liabilities in the classified balance sheet into various types Like assets are divided into fixed assets, current assets, and intangible assets.

Liabilities are likewise divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet which means

Total assets = Total liabilities + shareholder equity

So, the accounts which are appeared on the balance sheet are shown below:

1. Accounts Payable = Current liabilities

2. Accounts Receivable = Current assets

3. Andrew King, Capital = Stockholder equity

4. Cash = Current assets

5. Land = Fixed assets

6. Supplies = Current assets

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3 years ago

Stealth bank holds deposits of $200 million. It holds reserves of $15 million. It has purchased government bonds worth $75 milli

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Answer:

$220 million

Explanation:

Stealth bank total value of liabilities will be:

Reserves $15 million

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Value of bank liabilities $220 million

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2 years ago

The material wealth of society is determined by the economy's _________, which is a function of the economy's _________. a. inve

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Answer:

The material wealth of society is determined by the economy's productive capacity, which is a function of the economy's real assets.

Explanation:

Production capacity or <em>productive capacity</em> is the maximum level of activity that can be achieved with a given productive structure. The study of capacity is essential for business management in that it allows analyzing the degree of use made of each of the resources in the organization and thus have the opportunity to improve them.

<em>Real assets</em> are physical assets that have value due to their substance and properties. Real assets include precious metals, raw materials, real estate, agricultural land, machinery and oil. They are appropriate for inclusion in more diversified portfolios due to their relatively low correlation with financial assets such as stocks and bonds.

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2 years ago

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied______________.

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Answer:

d. there is a shortage and the interest rate is below the equilibrium level.

Explanation:

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.

Therefore, there is a shortage and the interest rate is below the equilibrium level.

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2 years ago