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4 years ago

Explain the several processes by which the Federal Reserve can increase or decrease the money supply.

Business

1 answer:

Ipatiy [6.2K]4 years ago

6 0

Answer:

Monetary policy instruments:

(a) Reserve requirements:

It is the part or portion of the deposits with the banks that have to be kept with the fed. If this reserve ratio increases then as a result money supply decreases because now banks have to keep more funds with the fed.

(b) Open market operations:

It is a monetary policy instrument used by the Federal reserve for controlling the money supply in an economy. When there is a need to increase the money supply then fed purchases the government securities from the public and vice versa.

(c) Discount rate:

It is the interest rate at which federal reserve lends money to the banks. If there is an increase in this rate then banks have to pay higher interest to the fed. This will reduce lending capability of the banks and hence, decreases the money supply.

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As the President of a local trade company, Kristin is faced with leadership, ethical, and operational decisions on a daily basis

ivanzaharov [21]

Answer:

B. Information management

Explanation:

Information management refers to managing the sources of information that a company uses, and distributing the information received to the internal users. It involves identifying information needs, developing information services, and distributing and using that information.

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4 years ago

Two ways in which best bank can adapt to the challenges of the macro environment

cupoosta [38]

Answer:

Mergers or Information Management

Explanation:

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Information management -All changes lead to new information that needs to be distributed to all the relevant parties.

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3 years ago

India’s low-cost labor market and abundant supply of talented engineers gives it a(n) _________ in the international trade marke

zheka24 [161]

Answer:

economic barrier is correct answer

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3 years ago

What is the most direct result of free trade supplying productive resources to areas where they're most needed? A. Enhanced effi

nydimaria [60]

Answer:

The correct answer to the following question will be Option A (Enhanced efficiency).

Explanation:

Enhanced Efficiency seems to be an innovation that decreases the probability of discharge of that same object surface. It is indeed a definitive version of an effective. The whole bonus is going to take 2 elements in such a gizmo. It could be generated in the gizmos of guns, shields, and devices.
It would be the most immediate consequence of direct exports providing economic assets to regions where they'll be required.

Other given choices are not related to the given scenario. So that Option A seems to be the appropriate choice.

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4 years ago

Keesha Co. borrows $200,000 cash on November 1, 2018, by signing a 90-day, 9% note with a face value of $200,000. 1. On what dat

aliya0001 [1]

Answer:

Explanation:

1. The maturing date of note will be 30 January 2019

( 29 days in November + 31 Days in December and 30 Days in January)

2. The interest expense would be

On 2018:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $200,000 × 9% × (60 days ÷ 360 days)

= $3,000

( 29 days in November + 31 Days in December)

3. On 2019:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $200,000 × 9% × (30 days ÷ 360 days)

= $1,500

(30 Days in January)

We assume 360 days in a year.

4. (A) Cash A/c Dr $200,000

To Notes payable A/c $200,000

(Being note is issued for cash)

(B) Interest expense A/c Dr $3,000

To Interest payable A/c $3,000

(Being accrued interest adjusted)

Interest payable A/c Dr $3,000

Notes payable A/c Dr $200,000

To Cash A/c $204,500\

(Being cash is paid on maturity)

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4 years ago