1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lidiya [134]
3 years ago
13

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

Business
1 answer:
Makovka662 [10]3 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
PLEASE HELP ASAP!!! (There are 4 Questions)
Ivanshal [37]

1. A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. If a co-signer is on the loan, if the main party defaults the co-signer becomes responsible for the loan.

2. I could ask family members as a last resort for financing.

3. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 and 2019, the annual exclusion is $15,000.

4. line of credit loan will help protect a business in case of emergency. It is an open loan that the business can draw from when it needs more money, and pay it back. Unlike installment loans, once the principal is paid the line stays open for use in the future without the need to reapply each time.

3 0
3 years ago
Read 2 more answers
The pursuit of an activity for an outcome that is separate from the person is called
Masteriza [31]
A pursuit of an exercise for an outcome that is separate from the person is called extrinsic motivation.
EM refers to an action that is induced by external rewards such as money, fame, grades, and praise. This type of motivation appears from outside the individual, as aversed to intrinsic motivation.
3 0
3 years ago
Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no
Marina CMI [18]

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

= $20 per share

3 0
2 years ago
Create a conversational but professional tone in letters, e-mail messages, instant messages, and memos by Group of answer choice
egoroff_w [7]

Answer:

Using familiar words, occasional contractions, and pronouns such as you and I.

Explanation:

This is the best strategy in order to create a conversational but professional tone in letters, e-mail messages, instant messages and memos. This strategy suggests the use of familiar words. This will give a personal, relaxed tone to your texts. Moreover, it suggests the use of occasional contractions. Contractions are useful when it comes to making a text less formal and more intimate. Finally, using pronouns such as "you" and "I" gives a tone of closeness, while remaining professional.

4 0
3 years ago
Kimona Company hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0 =
nlexa [21]

Answer:

-2.23%

Explanation:

The formula to compute the cost of common equity under the DCF method is shown below:

= Current year dividend ÷ price + Growth rate

In first case,

The current dividend would be

= $0.85 + $0.85 × 5%

= $0.85 + $0.0425

= $0.8925

The other things would remain the same

So, the cost of common equity would be

= $0.8925 ÷ $20 + 5%

= 0.044625 + 0.05

= 9.46%

In second case,

The price would be $40

The other things would remain the same

So, the cost of common equity would be

= $0.8925 ÷ $40 + 5%

= 0.0223125 + 0.05

= 7.23%

The difference would be

= 7.23% - 9.46%

= -2.23%

4 0
3 years ago
Other questions:
  • To make bond purchases, the Fed gets the money __________. Select the correct answer below: exclusively from proceeds it has rec
    9·1 answer
  • According to the Job Characteristics Model, _____ refers to the job characteristic that reflects the degree to which a job allow
    9·1 answer
  • Select the correct answer.
    8·1 answer
  • Gary did not pay his past three payments on his mortgage. What is the possible consequence he is facing?
    11·1 answer
  • Read the section "The Effect of Price on Number of Suppliers." What support does the reading give for the idea that the music in
    8·1 answer
  • Prepare the 2017 schedule of cost of goods manufactured for Barton Company using the following information. Direct materials$230
    5·1 answer
  • With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combinati
    10·1 answer
  • Christine has obtained a job pitching a product at a local state fair. Her job is to demonstrate cookware, highlighting its feat
    8·1 answer
  • Tamekia reports that the market leader in the TZX mitt category has 60 percent of all sales in the market and spends $240,000 a
    10·1 answer
  • Tristan has found a good job as a bookkeeping clerk after finishing his associates degree at the local community college. He is
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!