All categories

2 years ago

When banks borrow and lend reserves in the federal funds market,

Business

1 answer:

Makovka662 [10]2 years ago

3 0

Answer:

The correct answer is A

Explanation:

The reserves can not be a part of the M1, which is a stock of money but they are a part of monetary base. When in the market, the transaction among the banks in relation to the sale and the purchase of the reserve.

The supply function is vertical which states the total quantity of reserves will remain be un exchanged after the market transaction unless they are increased by the Central Bank.

Therefore, A option is correct.

You might be interested in

Recently, the level of gdp has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. aggregate

Paha777 [63]

Answer:

a. $45 billion.

Explanation:

The aggregate expenditures must have fallen by = 0.75*$65 billion

= $45 billion

Therefore, The aggregate expenditures must have fallen by $45 billion.

8 0

3 years ago

Bolt Corp. acquires equipment valued at $81,630 by signing a 3-year noninterest-bearing note payable for $100,000. Calculate the

Serga [27]

Answer:

Explanation:

Calculation for the implicit interest rate on the note

First step is to calculate the PV factor

PV factor=$81,630/100,000

PV factor = 0.81630

Last Step is to find the implicit interest rate by using the PV table for 3 years to find the factor that matches the PV factor of 0.81630

Hence the factor that matches the PV factor of 0.81630 can be found or see in the 7% column which means that the implicit interest rate will be 7%

Therefore the implicit interest rate on the note will be 7%

4 0

2 years ago

The weighted moving average forecast for the fifth period, with weights of 0.15 for period 1, 0.20 for period 2, 0.25 for period

bulgar [2K]

Answer:

a. 3,760

Explanation:

The computation is shown below:

Period Demand Weight Demand × weight

1 3,500 0.15 525

2 3,800 0.20 760

3 3,500 0.25 875

4 4,000 0.40 1,600

Total 3,760

We simply multiplied the demand with the weight to get the total.

4 0

2 years ago

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes

NemiM [27]

Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:

A. $333
B. $667

a. The machine will take a year to build which means the payoff will only start coming in next year.

First find the present value of the perpetuity:

= 70 / 5%

= $1,400

You then need to find the present value of the above in the current period:

= 1,400 / ( 1 + 5%)

= $1,333

NPV is:

= 1,333 - 1,000 cost

= $333

B. If the amount produced increases by 1%, you should use the Gordon Growth Model:

<em>= Next payoff / ( Interest - Growth)</em>

=70/ ( 5% - 1%)

= $1,750

Take this to current year:

= 1,750 / 1.05

= $1,667

NPV will be:

= 1,667 - 1,000

= $667

Find out more about NPV at brainly.com/question/7254007.

3 0

2 years ago

Tim, who works for Peachtree Realty, referred a buyer to a broker who works for Pinetop Realty. The referring agent is to receiv

IrinaK [193]

Answer:

$1,312.50

Explanation:

Calculation for How much was the referring agent paid

First step is to find the buyer agent amount by using the buyer's agent percentage to multiply the buyer purchased amount of the home

Using this formula

Buyer agent amount =Buyer's agent percentage× Home purchased amount

Let plug in the formula

Buyer agent amount=1.5%×$350,000

Buyer agent amount=$5,250

The last step is to find How much was the referring agent paid

Using this formula

Amount referring agent paid =Buyer agent amount× Percentage of buyer side commission

Let plug in the formula

Amount referring agent paid=$5,250×25%

Amount referring agent paid=$1,312.50

Therefore the amount that the referring agent paid will be $1,312.50

5 0

2 years ago