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3 years ago

How does the Federal Reserve reduce the money supply in the economy?

Business

2 answers:

IrinaVladis [17]3 years ago

8 0

Answer:

Contractionary; Reserve ratio

Explanation:

If Fed wants to reduce the money supply in an economy then it must follow the contractionary monetary policy and it increases the reserve ratio.

Increase in the reserve ratio will lead to increase the amount of cash that banks are required to hold with Fed and with itself. And, this will also reduce the lending capability of the banks, so less amount of money would be used for giving loans which reduces the money supply in an economy.

Anni [7]3 years ago

3 0

Answer:

Using Contractionary monetary policy, the federal reserve increases Interest Rates to reduce the money supply in the economy.

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A ________ is a collection of tasks, steps, or activities that are performed, usually in a specific order, and result in an end

harina [27]

Answer:

Explanation:

A process is a collection of tasks,steps,or activities that are performed

3 0

1 year ago

Suppose Kim Ping and Abdel decide to set up a joint venture. Working together, the two companies will build a new, independent m

harina [27]

Answer:

Kim Ping and Abdel will have trouble when it comes to equality in a joint venture. There is always one partner who earns more than the other.

Kim Ping and Abdel will face "conflict of interest." Every individual has his own purpose in making a profit.

Explanation:

"Join venture" refers to the merging of two parties, including their resources, in order to accomplish a project or start a new business. This means that the company profits and losses will be shared by both parties.

However, it is said that "there is no such things as equal partners." There is always a chance that one party will earn more than the other, or the other party will contribute more than the other.

There is also a possibility of "conflict of interest" in such situation. Every partner has his own beliefs and style of running a business. This will cause a conflicting interest in both parties.

These are the possible problems that Kim Ping and Abdel might encounter.

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3 years ago

After you record your business transactions what is the next step in the process of turning this data into useful information?

hoa [83]

I think the answer is called enriching but i might be wrong.

4 0

2 years ago

An alternative name for Bad Debt Expense is A. Collection Expense.B. Credit Loss Expense.C. Uncollectible Accounts Expense.D. De

PIT_PIT [208]

Answer:

An alternative is also known as Uncollectible accounts expense

Explanation:

A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.

Bad debt expenses are generally classified as a sales and general administrative expense and are found on the income statement. Recognizing bad debts leads to an offsetting reduction to accounts receivable on the balance sheet.

Bad debt expense is also known as Uncollectible accounts expense

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3 years ago

In the case of an unanticipated inflation: A) creditors with an unindexed contract are hurt because they get less than they expe

podryga [215]

Answer:

A is the correct option.

Explanation:

The increase in the general price is known as inflation. This inflation occurs when people know that Inflation is going to occur and they start preparing for it. e.g In case of increased interest rates if the inflation is anticipated, the banks try to protect themselves by increasing the interest rates. There is also unanticipated inflation which occurs when people are unaware that inflation until the price level increases. In the case of unanticipated inflation, people are unprotected.

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3 years ago