<u> 26.4 percent</u> the change in the money supply when the fed purchases $600 worth of bonds and the required reserve ratio is 8 percent assuming banks hold no excess reserves
<h3>What is
money supply?</h3>
The total amount of money and other liquid assets in an economy on the measurement date is known as the money supply. Both cash and deposits that can be accessed virtually as easily as cash are roughly included in the money supply.
Through a mix of their central banks and treasuries, governments issue coin and paper money. By imposing reserve holding requirements on banks, dictating how to grant credit, and handling other monetary issues, bank regulators have an impact on the amount of money that is available to the general people.
The quantity of money or cash in circulation within an economy is referred to as the money supply.
Numerous measurements of the money supply also factor in non-cash assets like credit and loans.
Monetarists contend that, all other things being equal, expanding the money supply results in inflation.
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Answer:
The correct answer is letter "B": Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.
Explanation:
Stocks are high-risk investments that can provide profits overnight or can swipe investors' accounts in a matter of seconds. When it comes to inflation, they do not have to deal too much with it. On the other hand, bonds are less risky, almost safe investment vehicles that give investors profits based on the fixed interest rate that the bond pays and is collected by year. Inflation erodes the purchasing power of bonds.
Answer:
(B) The master budget includes operating budgets (e.g., production budget) and financial budgets (e.g., cash budget).
Explanation:
The master budget is a business approach which includes all the financial budget as well as the expected incoem statement adn balance sheet.
To do so, it wll need to prepare:
- the production budget (using sales budget)
- the purchase budget (using production)
- collection budget (using sales)
- cash budget (using all of the previous budget)
- And then combine all this data to create an income statement and balance sheet for the period.
Answer:
Increase by $31,500
Explanation:
Calculation to determine the operating income
First step is to calculate the Total relevant cost
DIFFERENTIAL ANALYSIS
MAKE BUY
Variable cost $144,900 $0
(2,100*$69)
Fixed cost $46,200 $0
(2,100*55*40%)
Purchase cost $0 (2100*76) = $159,600
Total relevant cost $191,100 $159,600
Now let determine the Increase or decrease of the company's operating income
Increase by =($191,100- $159,600)
Increase by = $31,500
Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500
Answer:
a. Equity alliance
Explanation:
Equity alliance -
It is the process , in which one of the company take the equity stake of the other company and vice versa , is referred to as equity alliance .
Due to this , the company becomes shareholder and stakeholder of each other .
The share acquired is the minor one , so that the company still have the power of decision making .
Hence , same case is shown in the question ,where the Moon Star Products Inc.buys the 40 % of the stock of Gold Logistics .
