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DIA [1.3K]
3 years ago
10

When the Fed sells securities, the total funds of commercial banks ____ by the market value of the securities sold by the Fed. T

his activity initiated by the FOMC's policy directive is referred to as a(n) ____ of money supply growth.
Business
1 answer:
Colt1911 [192]3 years ago
5 0

Answer:

The correct answer is decrease; tightening.

Explanation:

If the FED reduces the money supply, it can cause interest rates to rise and credit conditions to tighten. If there is no change in the demand for money, the effect of reducing the money supply is said to lead to higher interest rates. For its part, another effect is to decrease the volume of loans made.

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Stoneheart Group is expected to pay a dividend of $3.25 next year. The company's dividend growth rate is expected to be 3.5 perc
Vera_Pavlovna [14]

Answer:

$37.79

Explanation:

The computation of the stock price is shown below:

Data given in the question

Next year dividend = $3.25

Growth rate = 3.5%

Required rate of return = 12.1%

So, the stock price is

= Next year dividend ÷ (Required rate of return - growth rate)

= $3.25 ÷ (12.1% - 3.5%)

= $3.25 ÷ 8.6%

= $37.79

We simply apply the above formula to find out the stock price

5 0
3 years ago
The following credit sales are budgeted by Novak Corp.: May $580700 June 854000 July 1195600 August 1024800 The company’s past e
Andru [333]

Answer:

The anticipated collections for August are $1024800

Explanation:

Based on the past experience part, the cash inflows for August will include 8% of June's sales collection, 20% of July's sales collection and 70% of August's sales collection.

Thus, the anticipated collection for August will be:

  • 8% of June' sales = 854000 * 0.08 = 68320
  • 20% of July's sales = 1195600 * 0.2 = 239120
  • 70% of August sales = 1024800 * 0.7 = 717360

Total anticipated collection-August = 68320 + 239120 + 717360 = $1024800

8 0
3 years ago
Sales prices of baseball cards from the 1960s are known to possess a right skewed distribution with a mean sale price of $5.25 a
VMariaS [17]

Answer:

option  b is correct

Normal with a mean of $5.25 and a standard error of $0.28

Explanation:

Given data

mean = $5.25

standard deviation SD = $2.80

sample n = 100

to find out

sampling distribution

solution

we will find here first mean error that is

standard error = SD/ √n

put here value n and SD

standard error = 2.80 /√100

standard error = 0.28

and we know here that by central limit theorem that is state that sample distribution of sample mean is approximate normally distribute with Standard error and mean so

mean with normal is 5.25

Hence

option  b is correct here

Normal with a mean of $5.25 and a standard error of $0.28

7 0
3 years ago
Assume that the interest rate on borrowing in Japan is 1 percent, while the interest rate on deposits in Australian banks is 5 p
Svetllana [295]

Answer:

The correct answer is option is b.

Explanation:

Swing trade is a trading strategy where attempts are made to earn profit from the stocks in a span of a few days.  

Carry trade is a type of currency trading strategy. Under this strategy, money is borrowed in a currency which has a lower interest rate then converted and deposited into the currency which has higher interest rates. In this way, profit is earned.  

Under channel trading strategy, the trading is done in a certain channel which represents the value of assets for a specific period. It is for short term and medium term.  

Under the price action trading strategy, the price movements in the market are studied and trading is done on this basis.

6 0
3 years ago
What is the typical relationship between time and interest rate
FrozenT [24]

The longer the period of time the higher the interest rate

8 0
3 years ago
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