Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓
Explanation:
The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.
If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.
As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.
Answer:
$312.5 million
Explanation:
Given that,
Besnier Company's sales last year = $250 million
Fixed assets last year = $75 million
Previous operating capacity of fixed assets = 80%
Sales at full capacity:
= Previous sales ÷ Previous Capacity
= $250 million ÷ 80%
= $312.5 million
Therefore, if the company had operated at full capacity then the sales could have been $312.5 million.
Answer:
Make; $72,000
Working:
Make ($106*8000) 848,000
Buy [($120*8000 - 40,000)] 920,000
Make increases profits by 72,000
Answer:
Specialty Store
Explanation:
A specialty store is a store where it keeps the high brand, style or models having the narrow category of goods and services. The products like furniture, sporting goods, bookstores are categorized as the speciality stores.
Since in the given situaton, it is mentioned that the stores increase the usage of the designer boutique for highlighting the particular designers for the small market so this represent the speciality store of that retail institution
Answer:
(A) is the manner in which the burden of a tax is shared among participants in a market
Explanation:
Tax incidence refers to the burden of a tax between buyers or sellers or other stakeholders.
When price elasticity of supply is greater than price elasticity of demand, i.e a change in price causes supply to change more than demand, the tax incidence is said to be more burdensome for the buyers and vice versa.
It represents the distribution of tax burden to various sections of a society such as producers, consumers, etc.
For example, if taxes and duties are raised on alcohol or cigarettes, the producers shall transfer such burden on the consumers by covering their margin and raising prices. Thus, in such a case, the tax incidence would be borne by the consumers.
