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3 years ago

Why does the fed pay interest to banks?

Business

1 answer:

AlexFokin [52]3 years ago

7 0

Answer:

It was necessary to pay interest on those deposits so as to avoid excessive money growth solely as a results of the temporary injection of liquidity into the banking industry during the financial crisis.” Now, depository institutions receive interest on the minimum required reserve balances they hold with the Fed

Explanation:

plz mark brainest

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Behavioral economist Richard Thaler has studied several examples of how businesses make use of inconsistencies in consumer deci

KATRIN_1 [288]

Answer:

The correct answer is: An example of businesses taking advantage of inconsistencies in consumer decision-making is credit card companies not allowing stores to charge a fee to consumers if they pay with a credit card but allowing stores to provide a discount to consumers if they pay in cash

Explanation:

The purchase decision process is the decision-making process used by consumers regarding market transactions before, during and after the purchase of a good or service. It can be seen as a particular form of a cost-benefit analysis in the presence of multiple alternatives.

5 0

4 years ago

Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,300 units, April 13,300

madreJ [45]

Answer:

13,000 units

Explanation:

Given that,

Total production in April = 13,300 units

Total sales in May = 16,000 units

Ending finished goods inventory = 10% of the following month’s sales

Therefore, the number of units sold in April is determined by deducting ending finished goods inventory of April from the total production of units in April and beginning finished goods inventory.

Let the sales in April be x,

The beginning finished goods inventory of April is same as the ending inventory of March.

Ending finished goods inventory in March:

= 10% of sales in April

= 0.1 x

Ending finished goods inventory in April:

= 10% of sales in May

= 0.1 × 16,000 units

= 1,600 units

Therefore, the number of units in April is calculated as follows:

Ending inventory = Total production in April + Beginning inventory of April - Sales

1,600 units = 13,300 units + 0.1x - x

0.9x = 13,300 - 1,600

0.9x = 11,700

x = 13,000 units

Hence, the number of units sold in April is 13,000.

3 0

3 years ago

A business in which the owners have little personal responsibility for the company’s debts and actions is called a

adell [148]

I believe the answer is A.

7 0

3 years ago

. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 4 bars and the price is $4. In year

NikAS [45]

Answer:

Nominal GDP in year 1 = $16

Nominal GDP in year 2 = $25

Nominal GDP in year 3 = $36

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Nominal GDP is GDP calculated using current year prices

Nominal GDP in year 1 = 4 x $4 = $16

Nominal GDP in year 2 = 5 x $5 = $25

Nominal GDP in year 3 = 6 x $6 = $36

5 0

3 years ago

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates

schepotkina [342]

Super corporation produces a part in the manufactures of its product. The unit cost is $21 computed as follows:

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

Direct material 6

Direct labour 8

Variable manufacturing overhead 2

Fixed manufacturing overhead 5

Total cost 21

Answer:

Total financial advantage of buying from the supplier $43,200

Explanation:

Unit relevant variable cost of making= 6+8 +2 = 16

Variable cost of making ( 16× 7200) = 115,200

Variable of buying (13 ×7200) 93,600

Savings in variable cost 21,600

Savings in fixed cost (60%*72300 × 5) 21600

Total savings from buying 43,200

Total financial advantage of buying from the supplier $43,200

3 0

3 years ago