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fredd [130]
3 years ago
6

1. When the Fed sells bonds in open-market operations, it _____________ the money supply.

Business
1 answer:
makkiz [27]3 years ago
7 0

Answer:

1) decreases

2) decreases

3) increase

4)  decrease

5) decreases

Explanation:

1. When the Fed sells bonds in open-market operations, it decreases the money supply.

If the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

2. If the Fed raises the reserve requirement, the money supply decreases.

By increasing the reserve requirement, the Federal Reserve is essentially taking money out of the money supply and increasing the cost of credit.

3. When the Fed decreases the interest rate it pays on reserves, the money supply will increase.

When the Fed decreases the interest rate paid on reserves, it: decreases the reserve-deposit ratio (rr) thereby increasing the money supply.

4) When the FOMC increases its target for the federal funds rate, the money supply will decrease.

The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System. While the FOMC can't mandate a particular federal funds rate, they can adjust the money supply so that interest rates will move toward the target rate. Therefore, by increasing the amount of money in the system it can cause interest rates to fall; by decreasing the money supply it can make interest rates rise.

5) When Citibank repays a loan it had previously taken from the Fed, it decreases the money supply.

The money supply reduces gradually by the amount of the principal when bank loans are repaid. So if Citibank repays a loan it had previously taken from the Fed, it will decrease the money supply.

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Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27
NISA [10]

Answer:

The old machine should be replaced.

Explanation:

Note: See the attached excel file for the the analysis showing whether the old machine should be retained or replaced.

From the attached excel file, the following calculation are made:

Variable Manufacturing cost of Retain = Initial Variable Manufacturing cost * remaining useful life of old machine = $592,600 * 5 = $2,963,000

Variable Manufacturing cost of Replace = New Variable Manufacturing cost * Remaining useful life of new machine = $505,500 * 5 = $2,527,500

From the attached excel, it can be observed that the total cost of Retain is $32,200 higher than the total cost of Replace. This therefore implies that the old machine should be replaced.

Download xlsx
6 0
3 years ago
On october 4, 2017, terry corporation had credit sales transactions of $2,500 from merchandising having a cost of $1,900. the en
Arturiano [62]

I believe that this problem has the following choices:

 

> a debit of $2,500 to Merchandise Inventory.

> a credit of $2,500 to Sales.

> a debit of $1,900 to Merchandise Inventory.

> a credit of $1,900 to Cost of Goods Sold.

 

The correct answer from the choices is:

<span>> a credit of $2,500 to Sales
</span>

 

<span> </span>

8 0
3 years ago
What does the CFO of a company do? A. Manage the financial health of the company B. Manage the technological areas of the compan
juin [17]
A Is the correct answer I think CFO stands for Chief Financial Officer. 
4 0
3 years ago
Read 2 more answers
Which function(s) of money informs the consumer what currency to use to obtain a good or service?
inna [77]
The third function explains that money is a medium of exchange. It means that it is better to use the money used in the country itself to gain better service because it would provide better protection. Costumers would be more satisfied if the business would accept the money they have and it would be safer and mutually good for both if the customer would transact using the currency country's currency.


Source: https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
4 0
3 years ago
Read 2 more answers
Which of the following are necessary conditions for successful price discrimination?
mixer [17]

Answer:

d. at least two different markets with different price elasticities of demand

Explanation:

The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.

An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.

6 0
3 years ago
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