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White raven [17]
4 years ago
7

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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A customer owns an abc call option. abc declares a dividend for shareholders on record july 5th. the last day to exercise the op
Lostsunrise [7]

The last day to get exercise the option and receive the dividend is two business days prior to the record date. The customer can also exercise his dividend claim two business days prior to the ex-date or one business date prior to the ex-date. The only option not available to him is one business day prior to the record date.              

An option is a right available to a shareholder to buy a particular stock of which he has bought a call option at an agreed price. This option can be exercised by the holder to purchase the share at any given date and at a price that is agreed upon. The option holder requires to be eligible for dividends,

Dividends are declared as a benefit to shareholders of a company. The options holder will have to purchase the shares before the record date and will be eligible to receive a dividend.

1. Learn more about the call option here:

brainly.com/question/20732384

2. Learn more about dividends here:

brainly.com/question/15395112

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3 0
2 years ago
All of the following statements regarding the Federal National Mortgage Association (FNMA) are true EXCEPT:_________
algol [13]

Answer:

A) FNMA is owned by the U.S. government.

Explanation:

Federal National Mortgage Association (FNMA) also commonly referred to as "Fannie Mae" is a government-sponsored enterprise (GSE) that provides services such as purchasing mortgages from lending institutions so as to expand the secondary mortgage market or effectively boost affordable lending activity at the lending institutions. It was founded as part of the "New deal" during the Great Depression in 1938.

All of the following statements regarding the Federal National Mortgage Association (FNMA) are true;

1. FNMA pass-through certificates are not guaranteed by the U.S. government.

2. Interest on FNMA certificates is taxable at all levels.

3. FNMA stock is publicly traded on the NYSE.

<em>However, it is false or incorrect to say that the FNMA is owned by the United States of America (USA) government.</em>

The Federal National Mortgage Association (FNMA) is only being sponsored by the U.S government under the umbrella of the Federal Housing Finance Agency (FHFA).

3 0
3 years ago
Aggregate demand curves are Question 14 options: downward sloping. upward sloping. horizontal. vertical.
poizon [28]

Answer: Downward sloping

Explanation:

The Aggregate demand curve shows the national income in a country and the reason the AD is downward sloping is to represent that when the price level increases, the national income will drop because people now have to spend more for goods and services.

There are different factors that go into the AD curve but the basic premise is that when prices are high, people can only afford less so the demand decreases.

5 0
3 years ago
South central airlines (sca) operates a commuter flight between atlanta and charlotte. the regional jet holds 50 passengers and
Lynna [10]
There are two related questions for this problem. Check the attached file for the answers.

5 0
3 years ago
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40
Sergeu [11.5K]

Answer:

$4 per share

Explanation:

The formula to compute the regular yearly dividends in the future is shown below:

= Free cash flow ÷ outstanding shares

= $40 million ÷ 10 million shares

= $4 per share

It shows a relationship between the free cash flow and the outstanding shares

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
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