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hodyreva [135]
2 years ago
15

The reserve requirement is​ 10%. Suppose that the Fed ​$ worth of U.S. government securities a bond​ dealer, electronically the​

dealer's deposit account at Reliable Bank. Which of the following correctly describes the immediate effect of this​ transaction? A. The total reserves of Reliable Bank by ​$. B. The excess reserves of Reliable Bank by ​$. C. The required reserves of Reliable Bank by ​$. D. Reliable Bank
Business
1 answer:
victus00 [196]2 years ago
8 0

Answer:

D. The money supply decreases by ​$150,000.

Explanation:

Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:

The reserve requirement is​ 10%.

Suppose that the Fed sells ​$150,000 worth of U.S. government securities from a bond​ dealer, electronically debiting the​ dealer's deposit account at Reliable Bank.

Which of the following correctly describes the immediate effect of this transaction on the money​ supply?

A. The money supply decreases by ​$1,500,000

B. The money supply decreases by ​$135,000.

C. There is no change in the money supply.

D. The money supply decreases by ​$150,000.

E. None of the above.

The explanation to the answer is now provided as follows:

This is an example of Open market operations (OMO).

Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.

When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.

On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.

From the question, the sale of ​$150,000 worth of U.S. government securities from a bond​ dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.

Therefore, the correct option is D. The money supply decreases by ​$150,000.

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A client reporting recent right eye discomfort is diagnosed with chalazion of the right eye. The nurse reinforces instructions t
STatiana [176]

Answer:

"I should apply warm packs to my eye"

Explanation:

First and foremost what kind of infection is a Chalazion

A chalazion represents a cyst or lump usually found to be growing slowly within one's eyelid. The characteristic of this cyst is that it does not last for long, usually goes away after a few weeks and it is not usually accompanied by pain. Although there are occasions where it would warrant more urgent measures and treatments

One very effective way of treating or caring for the eye during the infection is to apply warm compresses to it. To do this the person should put a cloth into a bowl of warm water, wring out the water from the cloth and then apply it over the eye for a 10 to 15 minutes period.

Therefore, an understanding of the need to apply warm packs to the eye indicates an understanding of the necessary measures to be taken by the client.

5 0
2 years ago
True or False: One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.
Ganezh [65]

Answer:

True

Explanation:

Predetermined overhead rate is estimated at the start of the period by dividing the estimated manufacturing overhead cost by an allocation base. Predetermined overhead rate is quite useful especially in eliminating seasonal effects. So, the above statement is a true one important reason to apply the predetermined overhead rate is to mitigate the effects of seasonal factors.

3 0
2 years ago
If government spending increases or personal income taxes decrease, what are the likely effects on output, price level, and inte
Mila [183]

When there is an increase in government spending, there will be an increase on the output, price level, and interest rates

<h3>What is a government spending?</h3>

This refers to the funds injected to the public sector on the acquisition of services such as education, healthcare, social protection, defense etc.

Most time, the effect of an an increase in government spending leads to an increase on the output, price level, and interest rates as it is a method of stimulate demand.

Therefore, the Option A is correct.

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7 0
1 year ago
With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers would be:_______.
SIZIF [17.4K]

The Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

<h3>What is a free trade?</h3>

This refers to an international business policies that occurs when goods and services can be bought and sold between countries without tariffs, quotas or other restrictions being applied.

This policy tends to increase the volume of international trade among member countries and also allow them to increase their specialization in their respective comparative advantages.

Hence, in the graph given, the Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

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4 0
1 year ago
Assume an organization's current service level on order fill is as follows:
frosja888 [35]

Answer:

Answer for the question:

Assume an organization's current service level on order fill is as follows:

Current order fill 80%

Number of orders per year 5,000

Percent of unfilled orders back-ordered 70%

Percent of unfilled orders cancelled 30%

Back order costs per order $150

Lost pretax profit per cancelled order $12,500

a) What is the lost cash flow to the seller at this 80 percent service level?

b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent

c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?

d) What is the role of activity-based costing in customer relationship management? In customer segmentation?

is given in the attachment.

Explanation:

Download pdf
7 0
2 years ago
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