While the Board of Governors is a sovereign government agency, the Federal Reserve Banks are set up like private companies. Member banks hold stock in the Federal Reserve Banks and earn profits. The Federal Reserve's interest is determined principally from the interest on U.S. government securities that it has received through open market operations.

AND

The Correct answer choice for question 2 is : <u>Buy government securities</u>

<h3>What is Recession?</h3>

A recession is a business cycle recession which occurs in a general slowdown in financial activity. Macroeconomic indicators such as GDP, finance spending, capacity utilization, household income, business profits, and inflation fall, while failures and the unemployment rate rise.

Therefore, we can conclude that the correct option of 1 is (B) and 2 is (A).

Your question is incomplete, but most probably your full question was:

1. Which of the following institutions makes up the largest part of the Federal Reserve System organization?

A. Board of Governors

B. Federal Free Market Committee

C. Federal Reserve Banks

D. Member banks and other depository institutions

2. If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

A. Buy government securities

B. Increase reserve requirements

C. Raise federal funds and prime rates

D. Sell government securities

Learn more about Federal Reserve System on:

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7 0

2 years ago

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

bogdanovich [222]

Answer:

Creative Design Co.

A. Bank Reconciliation Statement as of August 31:

Balance as per bank statement $32,278

Deposit in transit, $7,170

Checks outstanding, ($14,668)

Balance as per adjusted cash bal. $24,780

B. The amount that should be reported for cash is $32,278.

C. B) Yes. A bank reconciliation must always balance (reconcile), otherwise, the purpose of the reconciliation is defeated.

Explanation:

a) Data and Calculations:

1. Cash balance according to the company’s records at August 31, $24,270.

2. Cash balance according to the bank statement at August 31, $32,278

3. Checks outstanding, $14,668

4. Deposit in transit, not recorded by bank, $7,170

5. A check for $58 in payment of an account was erroneously recorded in the check register as $580.

6. Bank debit memo for service charges, $12

Cash Book Adjustment:

August 31 balance $24,270

add overstatement of check 522

less bank charges 12

Adjusted balance $24,780

8 0

3 years ago

Refer to the financial statement for the current year and prior two years. Analyze the year-to-year change in account balance fo

insens350 [35]

Answer:

c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year

There is no much risk associated with company

Explanation:

1)Current Ratio = current assets/current liability

2)return on equity= net profit/equity

3)Net Income(%)=net income/sales

4)Fixed Asset Turnover= Sales/Fixed asset

5)Debt ratio=debt/assets

8 0

3 years ago

Suppose your newspaper is trying to decide between two competing desktop publishing software packages, Macro Publish and Turbo P

Vlad1618 [11]

Answer: 11.722

Explanation:

Two competing desktop publishing packages ; Macro publish and Turbo publish

If x and y copies of Macro publish and Turbo publish are purchased respectively ;

Daily Productitvity equals ;

U(x, y) = 6(x^0.9) (y^0.4) + x

where U(x, y) is measured in pages per day U is called a utility function

If x = y = 10

U(x, y) = 6(x^0.9) (y^0.4) + x

Therefore,

U(10,10) = 6(10^0.9) (10^0.4) + 10

U(10,10) = 119.716 + 10 = 129.716

The effect of increasing x by one unit results in

x = 11, y = 10

U(x, y) = 6(x^0.9) (y^0.4) + x

Therefore,

U(11,10) = 6(11^0.9) (10^0.4) + x

U(11,10) = 130.438 + 11 = 141.438

Productivity increase of approximately U(11,10) - U(10,10) = (141.438 - 129.716)

= 11.722 pages

3 0

3 years ago