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3 years ago

Three methods the government can use to cope with the external cost from pollution are

1 answer:

6 0

<span>Three methods the government can use to cope with the external cost from pollution are:
</span><span>1) Taxes , by cutting down a pecentage of Citizen's income to be added to Government's budget
2) Emission Charges, a fees collected by the government as a collateral for creating pollution
3) Cap-and-trade, Giving incentives to a certain economic sector to fight pollution</span>

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The basic purpose of imposing legal reserve requirements on commercial banks is to: A. Assure the liquidity of commercial banks

Aliun [14]

Answer:

Provide a device through which the credit-creating activities of banks can be controlled

Explanation:

The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.

The legal reserve requirement is used by the government as a means to control the supply of money in the economy.

If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.

A high reserve requirement reduces the amount that banks can make available for loans.

I hope my answer helps you

5 0

3 years ago

(Scenario: Assets and Liabilities of the Banking System) According to the Scenario: Assets and Liabilities of the Banking System

Phantasy [73]

If the banking system does NOT want to hold any excess reserves, $250,000 will be <u>added </u>to the money supply.

<h3>What is an excess reserves?</h3>

Excess reserves is known to be the capital reserves that is said to be held by a bank or financial institution and it is one that is too much or is in excess of what is needed by regulators, creditors, or others.

Since there is $25,000 worth of U.S. Treasury bills, one will multiply it times 10 = $250,000

Therefore, If the banking system does NOT want to hold any excess reserves, $250,000 will be <u>added </u>to the money supply.

Learn more about excess reserves from

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7 0

2 years ago

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77 x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0

3 years ago

The two most common compensation methods for teams are:

marishachu [46]

They are skill based pay and gain sharing.

6 0

3 years ago

Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $1

masya89 [10]

Answer:

Amount deposit = $118,411.4 (Approx.)

Explanation:

Given:

Future amount = $150,000

Rate of interest = 6% compounds semiannual

Number of year = 4 year

Find:

Amount deposit

Computation:

Compounds semiannual

So,

Rate of interest = 6% / 2 = 0.03

Time taken = 4 x 2 = 8 times

So,

A = P[1+r]ⁿ

150,000 = p[1+0.03]⁸

150,000 = p[1.03]⁸

150,000 = p[1.26677]

p = 150,000 / 1.26677

p = 118,411.393

Amount deposit = $118,411.4 (Approx.)

4 0

3 years ago