Monetary policy is used to control the size of the money supply to stimulate or moderate business activity levels in the economy. in contrast, fiscal policy uses government spending and taxation to do the same.
<h3>What is monetary and fiscal policy?</h3>
Fiscal policy are the steps taken by the government to change the business levels in the economy. The tools of fiscal policy are taxes and government spending. Fiscal policy can be expansionary or contractionary.
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Monetary policy are policies taken by the central bank of a country to shift aggregate demand. The tools of monetary policy are open market operations, reserve requirement and discount rate.
Expansionary monetary policy are polices taken in order to increase money supply. Contractionary monetary policy are policies taken to reduce money supply.
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Answer:
Reserves & Checkable deposits will equal to $36,000 and $106,000
Explanation:
The amount of checkable deposits is given $120,000 on the liabilities side. So, the withdrawal and clearance of check worth $14,000 will lead to a decline in the number of checkable deposits by $14,000. As a result, the remaining amount of checkable deposits will equal to $106,000 ($120,000 - $14,000).
To maintain the balance on asset & liabilities side of the balance sheet, the asset side will also reduce by $14,000. $14,000 will be deducted from the reserves of the bank. As a result, the remaining amount of reserves is equal to $36,000 ($50,000 - $14,000).
Answer:
Industrial Analysis.
Explanation:
Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the profit potential of the industry. The research that Terry was doing is called <u>Industrial </u>analysis.
Industrial Analysis: It is an analysis or function conducted by the owner of business to understand the dynamics and workflow of any specific industry. It help to know the industrial environment to gain the competitve advantage and potential of the business in the industry. Later on the basis of Industrial analysis, SWOT analysis is conducted to know Strength, weakness, opportunity and threats of a company.
