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3 years ago

Which of these is not something the fed is able to do?

Business

2 answers:

OlgaM077 [116]3 years ago

6 0

Options:

a. being a lender of last resort

b. being concerned with the stability of the banking system

c. serving as a major bank for the central government

d. setting currency exchange rates

Answer:

D) setting currency exchange rates

Explanation:

The US currently uses a floating exchange rate, which means that the value of the US dollar depends on the supply and demand of the US dollar and not any decision taken by some government entity (including the Fed).

The Fed's four main responsibilities are:

control of the money supply and credit supply
regulation and supervision of financial institutions
serve as a banking and fiscal agent for the US government
supply payment services through depository institutions

kykrilka [37]3 years ago

5 0

The correct answer is "<span>Prevent a budget deficit".

The FED or also known as The Federal Reserve System cannot prevent a budget deficit or the excessive use of money of the country, and increasing of expenses instead of an increase in the country's revenue.</span>

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Porter Inc's stock has an expected return of 10.75%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5%, what is

posledela

Answer:

the expected market risk premium is 4.6%

Explanation:

The computation of the expected market risk premium is shown below:

As we know that

Expected rate of return = Risk free rate of return + beta × market risk premium

10.75% = 5% + 1.25 × market risk premium

5.75% = 1.25 × market risk premium

So, the market risk premium is

= 5.75% ÷ 1.25

= 4.6%

hence, the expected market risk premium is 4.6%

we simply applied the above formula

8 0

2 years ago

Assume that on September 30, 2017, AirUS, an international airline based in Germany, purchased a Jumbo aircraft at a cost of

kaheart [24]

Answer:

A.7,650,000

B.2,677,500

C.17,000,000

Explanation:

DATA:

purchase cost = 42,500,000

Useful life = 5 years

Estimated useful life in miles = 5,000,000 miles

Salvage value = 4,250,000

Actual useful life in miles = 350,000miles

Solution

A. Depreciation (straight-line)= $\frac{Cost-residualvalue}{Usefullife}$

Depreciation( straight-line)= $\frac{42,500,000-4,250,000}{5}$

Depreciation( straight-line)= 7,650,000

B Depreciation (units of production)= (cost-Salvage value) x $\frac{Actualunits}{Estimatedunits}$

Depreciation (units of production)= (42,500,000-4,250,000)x $\frac{350,000}{5,000,000}$

Depreciation (units of production) = 2,677,500

C. Depreciation (Double declining) = 2 x cost x depreciation rate

Depreciation (Double declining) = 2 x 42,500,000 x 0.2(w)

Depreciation (Double declining) = 17,000,000

Working

Depreciation Rate = 1/Useful

Depeciation Rate = 1/ 05 = 0.2

6 0

3 years ago

During its first month of operations, Neptune Company (1) borrowed $200,000 from a bank, and then (2) purchased an equipment cos

sveta [45]

Answer:

$330,000

Explanation:

the journal entries would be:

Dr Cash 200,000

Cr Notes payable - bank 200,000

Dr Equipment 80,000

Cr Cash 40,000

Cr Notes payable 40,000

Dr Merchandie inventory 60,000

Cr Accounts payable 60,000

Dr Accounts receivable 120,000

Cr Service revenue 120,000

Dr Accounts payable 30,000

Cr Cash 30,000

Dr Utilities expense 60,000

Cr Cash 60,000

Assets:

Cash = 200,000 - 40,000 - 60,000 - 30,000 = $70,000
Equipment = $80,000
Merchandise inventory = $60,000
Accounts receivable =$120,000
total = $330,000

8 0

3 years ago

Read 2 more answers

A fast growing firm recently paid a dividend of $0.80 per share. The dividend is expected to increase at a rate of 30% rate for

Katyanochek1 [597]

Answer:

The value of the stock today is $60.48 and option A is the correct answer.

Explanation:

The two stage growth model of DDM will be used to calculate the value of this stock today. The two stage growth model is used when there are 2 different dividend growth rates. The 30% growth rate can be termed as g1 while the 7% growth rate which is assumed to remain constant forever can be termed as g2.

The formula for price/value under this model is,

Value or P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +

[Dn * (1+g2) / (r - g2)] / (1+r)^n

Value today = 0.8 * (1+0.3) / (1+0.1) + 0.8 * (1+0.3)^2 / (1+0.1)^2 +

0.8 * (1+0.3)^3 / (1+0.1)^3 + 0.8 * (1+0.3)^4 / (1+0.1)^4 +

[ (0.8 * (1+0.3)^4 * (1+0.07) / (0.1 - 0.07)) / (1+0.1)^4 ]

Value today = $60.60 which is closest to $60.48 and A is the answer.

The difference of $0.12 in the answer is because of the rounding off as the immediate calculations were not rounded off in the calculation of $60.60

4 0

2 years ago

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,990 per month plus $329 per snow-day. For the month of

VARVARA [1.3K]

Answer:

-$303 Unfavorable

Explanation:

The computation of spending variance is shown below:-

Spending variance = Flexible budget - Actual cost

= (23 × $329 + $2,990) - $10,860

= $7,567 + $2,990 - $10,860

= $10,557 - $10,860

= -$303 Unfavorable

Therefore for computing the spending variance we simply subtracted the actual cost from flexible budget.

8 0

3 years ago