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2 years ago

Using the supply and demand for loanable funds model, explain why the central bank may aggressively expand the monetary base.

1 answer:

8 0

Answer: This means that there may remain room for an increase in the monetary base to . Finally, we discuss reasons why the expansion of the monetary base at ..A central bank can lower longer-term interest rates even when . small, why does the Bank not aggressively try the “unconventional” policy of purchasing some specific.

Explanation: Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions.

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A balance sheet has total assets of $1,664, fixed assets of $1,156, long-term debt of $614, and short-term debt of $191. What is

Lorico [155]

Answer:

Total assets $1664 - fixed assets of $1,156 = $508

Assets $508 - Short term debt $191 = $317

Net working capital = $317

Explanation: Working capital is the difference in operating current assets less operating current liabilities. This difference is based on the fact that the company's operating activities are sufficient to cover the commitments acquired to fund these activities.

4 0

2 years ago

A portfolio is consisted of two stocks:$1,000 in stock X and $3,500 in stock Y. The expected return on stock X is 12%, and 6% fo

oksano4ka [1.4K]

Answer:

Portfolio return = 7.3%

Explanation:

The portfolio expected rate of return would be the weighted average expected rate of return

Weighted average expected rate of return=

12%× (1000/(3500+1000) + (3,500/(1000+3500)× 6%= 0.073333333

Expected rate of return = 0.073333333 × 100 = 7.3%

Portfolio return = 7.3%

6 0

2 years ago

An Internet business prides itself in its ability to fill customer’s orders in six calendar days or less on average. Periodicall

LenaWriter [7]

Answer:

Answer is explained in the attachment.

Explanation:

Download pdf

3 0

3 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com

Komok [63]

Solution and Explanation:

Answer:1 The total annual cash inflows associated with the new machine for capital budgeting purposes is:

$=\$ 5200+(2000 * \$ 2.40 \text { per dozen })$

=$10000

Answer:2 The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars Year Amount ($)

Cash outflow 0 -40000

Cash inflow 1 10000

2 10000

3 10000

4 10000

5 10000

6 10000

IRR 13%

=13% using IRR function in excel.

Answer:3 IRR=17%

with salvage value

Particulars Year Amount ($)

Cash outflow 0 -40000

Cash inflow 1 10000

2 10000

3 10000

4 10000

5 10000

6 22000

IRR 17%

using IRR function in excel.

5 0

2 years ago

On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use

Lady bird [3.3K]

Answer: $20000

Explanation:

Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.

Therefore, the payment that X Corp. can deduct in 2018 will be:

= $100,000 / 5

= $20000

6 0

2 years ago