Answer:
Money Supply - Decreases / Interest Rates - Increase
Explanation:
Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.
Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.
<span>the type of risk that is most likely to be insurable is : A. pure risk
Pure risk refer to the type of risk in which loss is the only possible outcome.
Example of pure risk : Identitiy theft
Identity theft is insurable because the only possible outcome of identity theft is a loss in assets, there is no way someone could get more wealth after identity theft</span>
The entry to close the dividends account at the end of the year is: Debit cash $5,200 and Credit dividends $5,200
<h3>What is a dividend?</h3>
Dividend is a form of payment made by the company to its existing shareholders, usually as a distribution of profits. It is a portion of company's earnings during the period being returned to their investors.
Dividends are means of both profit distribution and incentives for the investor who keeps on investing in the company.
The entries for dividend accounts are :
Debit cash $5,200
Credit dividends $5,200
Hence, the entry to close the dividends account at the end of the year is: Debit cash $5,200 and Credit dividends $5,200
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