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4 years ago

When the Fed decreases the money supply, we expect

Business

1 answer:

tester [92]4 years ago

6 0

Answer:

b. interest rates to rise and stock prices to fall.

Explanation:

Interest rates are the prices of money (the cost to borrow money for use) so when money is scarce (decreased money supply) rates will rise.

When interest rates rise, people will cut down on spending and investment causing corporate earnings to decrease, causing the price of stocks to decrease.

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Pink Polka Fashion Inc., a multinational clothing brand, has plans to expand in the European Union (EU) marketplace. In order to

vovangra [49]

Answer:

what is the question being asked here?

4 0

4 years ago

Harrison and Sherrie are making decisions on their bank accounts. Harrison wants to put more money in as a principle amount beca

Troyanec [42]

Sherrie wants to put the original money in an account with a higher interest rate. Explain which method will result in more money.

Answer: In this case I would say that both Sherrie and Harrison are good methods that will result in more money. As to find out which idea would make the most bang for the buck we would need actual data like interest rates.

I hope it helps, Regards.

5 0

4 years ago

Read 2 more answers

If the Fed wanted to use all four of its major monetary policy control tools to increase the money supply it would _____.

Georgia [21]

Answer:

sell bonds, increase discount rates and increase reserve requirements

Explanation:

The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements ( Sometimes discount rate management is divided as discount and interest rate) .

Open market operations involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with – the primary dealers – compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.

The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.

Reserve requirements are the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.

7 0

3 years ago

The sales era emerged because of an increased need to move products during the Great Depression.

marissa [1.9K]

I think it’s false because no one was buying anything during the depression

4 0

3 years ago

Carter Corporation made sales of $ 825 million during 2018. Of this amount, Carter collected cash for $ 710 million. The compa

salantis [7]

Answer:

Part (a) The net income of carter is $115 million.

Part (b) The closing cash balance at the end of year is $360.

Explanation:

Part (a) Net Income Computation:

Sales $825

Cost of goods sold ($290)

Gross Profit $535

Other Expenses ($425)

Net income $115 Million

Part (b) The cash balance of Carter is not dependent on non cash flows. So the cash transactions would be considered here for cash balance computation.

Opening Cash position $290

Collection from Sales $710

Inventory Invoices paid ($350)

For Everything ($290)

Closing Cash balance $360

4 0

3 years ago