All categories

4 years ago

What happens if the fed sells $5 billion worth of treasury bonds on the open market?

1 answer:

4 0

The Fed sells of reserve bonds to affect the money supply on the open market. Therefore, the fed sells $5 billion worth of T-bonds, then that means they will be taking out a big lump out of your bank put down. In the meantime, the fed sells might pump $5/billion into the financial system by incomplete set aside banking into the grouping and itâ€™s more like $50/billion and the Fed gets the Bonds and the financial system gets the money. Will have to the fed wish to take out cash from the market, it could sell those bonds and take cash out of the economy in trade for bond.

You might be interested in

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:At least reasonably poss

Fittoniya [83]

Answer:

The answer is: Probable and the amount of the loss can be reasonably estimated.

Explanation:

Losses should be recorded as soon as possible (conservatism principle) as long as they are probable and can be reasonably estimated. A loss doesn't have to occur to be recorded, that is why they are recorded as contingency losses. If the company finds it probable that a loss will happen but can't estimate it, then it can't record it as a contingency loss.

3 0

4 years ago

Corporation produces a single product. The standard cost card for the product follows:

Likurg_2 [28]

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5 - 2.1)*56,100

Direct material price variance= $169,690 favorabe

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (8,840*4 - 36,450)*5

Direct material quantity variance= $5,450 unfavorable

To calculate the direct labor efficiency and rate variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1.5*8,840 - 18,000)*10

Direct labor time (efficiency) variance= $47,400 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (10 - 8.2)*18,000

Direct labor rate variance= $32,400 favorable

8 0

3 years ago

What is the definition of corporate social responsibility?a. the rules by which social rewards are attainedb. the coordination o

Klio2033 [76]

Answer:

The correct answer is option c.

Explanation:

Corporate social responsibility is a modern concept regarding a companies' sense of responsibility towards the community and the ecological environment.

It means that the businesses have the responsibility to act for the benefit of the society and the environment along with profit maximization.

It is also termed as sustainable business, corporate citizenship etc.

3 0

3 years ago

Mostert Music Company had the following transaction inMarch:a. Sold instruments to customers for $10,000; received$ 6,000 in cas

devlian [24]

Answer: The answer is given below

Explanation:

It should be noted that for the cash basis income statement, the revenue were cash sales of $6000 and customer deposit of $1000 making a total of $7000. The expenses were the inventory purchased of $1000 and the wages paid of $600 making $1600. Cash income was now:

= $7,000 - $1600

= $5400

For the accrual income statement, the revenue was $10000 and expenses were $7800. The cash Income was now: $10,000 - $7800 = $2,200

Check the attachment for further clarification.

3 0

3 years ago

Manny's manager wants to add each client's birthday to the database. manny will need to _____.

AnnyKZ [126]

Insert A new field... C.

3 0

4 years ago

Read 2 more answers