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1 year ago

Discount policy affects the money supply by affecting the volume of and the .

1 answer:

3 0

The discount policy affects the money supply by affecting the volume of <u>borrowed reserves</u> and the <u>monetary base</u>.

The discount rate serves as an important indicator of the circumstance of credit in an economy. Due to the fact elevating or lowering the bargain price alters the banks' borrowing fees and hence the quotes that they charge on loans, adjustment of the cut price rate is considered a device to fight recession or inflation.

A discount policy is a tool taken with the aid of the vital bank to govern the cash move by raising or reducing interest quotes. If the crucial bank raised financial institution charges, the goal is to reduce the cash supply in the economy.

Discount rates affect consumers first, it sets the discount rate or the fee at which banks may also borrow from regional Federal Reserve Banks. just as we, the client, feign better interest charges, so do banks. Accordingly, a better cut price rate tends to discourage bank borrowing from the Federal Reserve Banks, and therefore reduces lending to consumers.

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You might be interested in

The ________ in the Sigma Six cost-of-quality (COQ) equation includes the internal costs before the product is sold (like waste

alex41 [277]

Answer:

Cost of Failure

Explanation:

A manufacturer incurs failure cost when they produce defective goods. The can be both internal and external cost.

Internal cost are those that incur before the product is sold/shipped to the ultimate buyer such as waste, re-work and/or reduction in sales price for re-worked goods. External cost on the other hand are those that occur following the shipment of goods such as warranty claims, cost of any legal action taken by customer, orders cancelled and/or lost of customer goodwill.

In most cases the external cost is higher than the cost incurred on the internal failure of the goods. So most often the manufacturers are more focused on ensuring that the quality standards are achieved.

5 0

3 years ago

You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for

FinnZ [79.3K]

Answer:

$86,166.31

Explanation:

We use future value (FV) formula as follows:

Step 1: Calculation of amount to have after five years:

Five years FV = $10,000 × (1 + 0.1)^5

= $10,000 × (1.01)^5

= $10,000 × 1.61051

Five years FV = $16,105.10

Therefore, $16,105.10 will be realized after five years.

Step 2: Calculation of amount to have after twelve years:

Twelve years FV = $16,105.10 × (1 + 0.15)^12

= $16,105.10 × (1.15)^12

= $16,105.10 × 5.35025010547371

Twelve years FV = $86,166.31

Therefore, you will have $86,166.31 after 17 years.

4 0

3 years ago

If Cassandra bought 12 blouses last year when her income was $46,000 and she buys 14 blouses this year when her income is $52,00

r-ruslan [8.4K]

Answer:

b. +1.26

Explanation:

The computation of the income elasticity of demand is shown below:

= (Percentage Change in quantity demanded) ÷ (Percentage Change in income)

= (change in quantity demanded ÷ average of quantity demanded) ÷ (change in income ÷ average of income)

where,

Change in quantity demanded would be

= Q2 - Q1

= 14 blouses - 12 blouses

= 2 blouses

And, average of quantity demanded would be

= (12 + 14) ÷ 2

= 13

Change in income would be

= $52,000 - $46,000

= $6,000

And, average of income would be

= ($52,000 + $46,000) ÷ 2

= 49,000

So, after solving this, the income elasticity of demand is +1.26

8 0

3 years ago

A university officer wants to know the proportion of registered students that spend more than 20 minutes to get to school. He se

vlada-n [284]

Answer:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

$n\hat p =25*0.52= 13 \geq 10$

$n(1-\hat p) = 25*(1-0.52) =12 \geq 10$

So then we satisfy this condition

3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.

So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So then the answer for this case would be:

a. Yes.

Explanation:

For this case we assume that the question is: If in the experiment described we can use the normal approximation for the proportion of interest.

For this case we have a sample of n =25

And we are interested in the proportion of registered students that spend more than 20 minutes to get to school.

X = 13 represent the number of students in the sample selected that have a time more than 20 min.

And then the estimated proportion of interest would be:

$\hat p = \frac{X}{n}= \frac{13}{25}= 0.52$

And we want to check if we can use the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So in order to do this approximation we need to satisfy some conditions listed below:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

$n\hat p =25*0.52= 13 \geq 10$

$n(1-\hat p) = 25*(1-0.52) =12 \geq 10$

So then we satisfy this condition:

3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.

So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So then the answer for this case would be:

a. Yes.

3 0

3 years ago

Deluxe Building Services offers custodial services on both a contract basis and an hourly basis. On January 1, 2015, Deluxe coll

algol [13]

Answer:

Since there is not enough room here, I prepared the financial statement effects template on an excel spreadsheet that I attached.

January 1, unearned revenue

Dr Cash 30,150

Cr Unearned service revenue 30,150

January 31, accrued services

Dr Unearned service revenue 5,025

Cr Service revenue 5,025

January 31, service revenue from hourly custodial work

Dr Accounts receivable 570

Cr Service revenue 570

Download pdf

4 0

3 years ago

Discount policy affects the money supply by affecting the volume of ________ and the ________.

Discount policy affects the money supply by affecting the volume of and the .