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4 years ago

When the Federal Reserve sells government securities on the open market, what effect does this action have on the nation's

Business

1 answer:

lukranit [14]4 years ago

4 0

Answer:

Money Supply - Decreases / Interest Rates - Increase

Explanation:

Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.

Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.

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Customers arrive at Rent a Wreck and hope to score an inexpensive and unsightly vehicle to use for what typically is a short per

levacccp [35]

Answer: B- 6 minutes

Explanation: From the question above, In one hour, about 20 customers shows up at Rent a Wreck.

It takes 2 minutes to photocopy their driver's license and insurance card and take an impression of a credit card

therefore 20/2=10

in one hour which is 60 min = 60/10

=6 minutes

4 0

4 years ago

If the U.S. dollar is strong, foreign imports are

DaniilM [7]

D. Less expensive…………….

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3 years ago

Identify which of the following statements is true. a. A nonresident alien can be an S corporation shareholder. b. A partnership

sdas [7]

Answer:

a. A nonresident alien can be an S corporation shareholder. (However, generally, we can't see non resident aliens owning shares, but it is not illegal.)

c. An S corporation can have more than 100 shareholders, since families are treated as a single shareholder.

Explanation:

A nonresident alien is a person who is not a U.S. citizen and does not pass the green card or substantial presence tests used to determine tax status and citizenship. Foreign Students are a good example for this.

these non residents usually do not hold ownership in corporations.

The term "S corporation" means a "small business corporation".

S corporations limit is 100 members, however, since the family members are treated as "individual one person", the number 100 could change in the practical scenario.

The option d is obviously wrong!

Option b is incorrect as well. Corporations and Partnerships can not own stake in S corporations.

4 0

3 years ago

Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, an

levacccp [35]

Answer:

Cerry Blossom Product Inc

the break-even quantity = Fixed cost / contribution margin

contribution margin on the other hand is sales price minus variable cost

compoutation of contribution margin

DVD Equipment

$ $

Price 11 15

variable cost 4 7

7 8

unit sold 18,000 4,500

sales ratio 4 1

weigheted average contribution margin = ($7*4) + ($8*1)

4 + 1

= $36/5

= $7.2

Overall break-even quantity = $84,000/$7.2

= 11,667

Break-even unit :

DVD = (4 * 11,667)/ 5

= 9,334units

Equipment sets = ( 1 * 11,667)/5

= 2,333 units

Explanation:

this question is on multi- products.

The overall break-even quantity of the firm will be computed first using the weighted average contribution margin of the firm and common fixed cost.

The break-even quantity will later be divided between the two product based on their sales ratio.

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3 years ago

Assets that are not expected to provide benefits for a number of accounting periods are called __________.

kiruha [24]

Assets that are not expected to provide benefits for a number of accounting periods are called b. fixed assets

5 0

4 years ago

Read 2 more answers