Answer: decreases
Explanation: The following practice is done by the central bank in the situation of inflation when there is an excess supply of money in the economy.
The central bank tries to decrease the funds by selling the govt bonds to the banks. This results in decrease in funds from banks as they have to buy such bonds from their respective funds.
I cannot see the questions can you please get closer
After a car is purchased at $43000 and looses 25% worth every year then the car will be worth $9200 or less after four(4) years.
What does Purchase mean?
Purchase is a term used to refer to the acquisition of goods or services in exchange for money. It is a common business transaction and can involve buying something outright or entering into an agreement to pay for it over time.
What does Services mean?
Services is a broad term that refers to any type of work or activity performed to meet the needs of a customer. Services can range from professional services like accounting or consulting to tangible products like food or clothing. Services are typically intangible in the sense that they cannot be touched, felt, or seen, but the benefits they provide are very real.
As per the price of the car which is $43,000 and it looses 25% each year which is $10750. From this we come to know that the car will be worth of $9200 or less within 4 years.
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Answer:
The correct answer is option A.
Explanation:
When the government buys from the public it will pay them back. So the purchase of $100 million of bonds by the government means $100 million was paid to the public.
Also, if the reserve requirement is lowered, it means the commercial banks can increase lending.
Both these actions combined will lead to an increase in the money supply.
