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LuckyWell [14K]
3 years ago
11

A commercial bank sells a treasury bond to the federal reserve for $100,000. (assume that all proceeds from this bond sale are l

ent out) the money supply: is unaffected by the transaction. increases by $100,000. decreases by $100,000.
Business
1 answer:
dimaraw [331]3 years ago
7 0

When a commercial bank sells a treasury bond to the Federal Reserve amounting to $100,000, the money supply increases by $100,000. In this case, the commercial bank who sold the treasury bond with cash will be able to increase the economy’s money supply because there is an exchange of bond and cash between the bank and the Federal Reserve.

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Transactions for Sunland Company for the month of June are presented below.
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Answer:

Date          Account Detail                                    Debit                   Credit

June 1        Cash                                                $4,080

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Date          Account Detail                                    Debit                   Credit

June 2       Equipment                                        $1,720

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Date          Account Detail                                    Debit                   Credit

June  3      Rental expense                                  $910

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June 12     Accounts Receivable                         $800

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Suppose a three period weighted average is being used to forecast demand. Weights for the periods are as follows: 0.1, 0.4 and 0
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Answer:

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