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cluponka [151]
3 years ago
10

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder

al Reserve when they find themselves short on reserves. A higher discount rate (increases or decreases) banks' incentives to borrow reserves from the Federal Reserve, thereby________ (increasing or reducing) the quantity of reserves in the banking system and causing the money supply to________ (fall or rise).
The federal funds rate is the interest rate that banks charge one another for short-term ________(typically overnight) loans. When the Federal Reserve uses open-market operations to buy govenment bonds, the quantity of reserves in the banking system ________(decreases or increases), banks' demand for borrowed reserves (declines or rises), and the federal funds rate________ (increases or decreases).
Business
1 answer:
Kaylis [27]3 years ago
6 0

Answer:

Explanation:

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A higher discount rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby reducing the quantity of reserves in the banking system and causing the money supply to fall

The federal funds rate is the interest rate that banks charge one another for short term loans. When the Federal Reserve uses open-market operations to buy government bonds, the quantity of reserves in the banking system increases, banks' demand for borrowed reserves declines , and the federal funds rate decreases.

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The following information is provided for Slickers, Inc. for year 2016: • Preferred stock, 5%, $20 par value, 1,500 shares issue
gayaneshka [121]

Answer:

The amount of dividends paid to common stockholders in 2016 is $4000

Explanation:

The cumulative preferred shares are the shares that accumulate dividends in case the dividends on these shares are not paid or paid partially in a year. The accumulated dividends will need to be paid first whenever the company declares dividends.

The amounts of dividends on preferred share for one year is,

Dividends - Preferred shares = 20 * 0.05 * 1500  =  $1500

Thus, the accumulated dividends on these preferred shares at start of 2016 is,

Accumulated dividends - Preferred shares = 1500 * 3 = $4500

The common shares holders are paid after the preferred share holders have been paid. This means that we will deduct the amount of accumulated dividends on preferred shares and the dividends for this year on preferred shares from the total dividends to calculate the amount to be paid to common share holders as dividends.

Common stock dividends =  10000 - (4500 + 1500)   = $4000

3 0
2 years ago
Using the rule of 70, about how much would $100 be worth after 50 years if the interest rate were 7 percent?
lions [1.4K]

The rule of 70 states that the doubling time or the time required to double an investment is equivalent to 70 divided by the interest rate. So in this case the interest rate is 7%, so the doubling period is:

doubling period = 70 / 7 = 10 years

 

Therefore the investment doubles every 10 years. So:

0 year = $100

10 year = $200

20 year = $400

30 year = $800

40 year = $1600

50 year = $3200

 

Answer:

<span>$3200</span>

4 0
3 years ago
. You have determined that Company A's shares have an intrinsic value of $20 per share but are trading at $22 per share, while C
igomit [66]

Answer:

a rational investor would short company A's shares and long company B's shares.

Explanation:

Company A's shares are overvalued.

A share is overvalued when its intrinsic value is less than its price

Company B's shares are undervalued.

A share is undervalued when its intrinsic value is greater than its price

It is expected that the price of company's A's share would fall. Investors that are holding this company's share would lose.

On the other hand, it is expected the the price of company B's shares would rise. Investors holding this company's share would gain from the increase in price.

Thus, a rational investor would short short company A's shares and long company B's shares.

7 0
2 years ago
According to research, which of the following is true about the relationship between diversity in managers and innovation
kakasveta [241]

The statement that is true is : A. At companies with diverse management teams, openness to contributions from lower-level workers and an environment in which employees feel free to speak their minds are crucial for fostering innovation.

<h3>What is research?</h3>

Research can be defined as the process of collecting data or information so as to reach or draw a conclusion.

Hence, based on  research, the relationship between diversity in managers and innovation is option A which stated that  that companies with diverse management teams, openness to contributions from lower-level workers and an environment in which employees feel free to speak their minds are crucial for fostering innovation.

The missing options are:

A. At companies with diverse management teams, openness to contributions from lower-level workers and an environment in which employees feel free to speak their minds are crucial for fostering innovation.

B. the innovation boost is limited to a single type of diversity, gender based.

C. The positive relationship between management diversity and innovation is statistically not significant.

D. To reach its potential, gender diversity needs to stay as tokenism.

E. Management diversity seems to have a particularly negative effect on innovation at complex companies.

Learn more about research here:brainly.com/question/25257437

#SPJ1

6 0
2 years ago
Profit refers to Multiple Choice
ExtremeBDS [4]

Answer:

4. the money left over after a business firm's total expenses are subtracted from its total revenues.

Explanation:

The profit could be in various ways

Like

Profit = Selling price - cost price

When the total revenues are deducted from the total expenses it is a profit or net income

In mathematically,

Net profit = Total revenues - total expenses

The profit is the amount which is come after deducting all the expenses and then subtracted from the total revenues

7 0
3 years ago
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