1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mario62 [17]
3 years ago
14

Reserves decrease if the Federal Reserve?a. raises the discount rate or auctions more credit. b. raises the discount rate but no

t if it auctions more credit. c. lowers the discount rate or auctions more credit. d. lowers the discount rate but not if it auctions more credit
Business
1 answer:
sweet-ann [11.9K]3 years ago
8 0

Answer:

D. lowers the discount rate but not if it auctions more credit

Explanation:

Discount rate adjustment and Federal Reserve's auction have the following effects on reserves.

Discount rate adjustment: a <em>higher discount rate</em> will encourage investment in the US economy, thus leading to <em>increased reserves</em> as investment inflows increase.

On the other hand, a <em>lower discount rate</em> encourages investment outflow into other jurisdictions with higher yields, <em>thus reducing reserves</em>.

Auction: <em>auctioning more credit</em> will result in the movement of investment flows into the Federal Reserve (<em>an increase in reserves</em>) as investors invest in auctions. Vice versa.

Therefore, a mix of lower discount rate and not auctioning more credit will result in lower reserves.

You might be interested in
The auditors' count of the client's cash should be coordinated to coincide with the
Savatey [412]
The auditor's count of the client's cash should be coordinated to coincide with the ''count of investment securities'' since both mean counting/managing money.
6 0
3 years ago
Why was Germany particularly susceptible to a downturn in the economy? (in the 1930s)
Step2247 [10]

I believe the answer is: Germany owed large debts to other countries after World War I


After being forced to surrender in world war I, the Allies forced Germany to pay back all the expense that other countries have to made due to the war that Germany initiated as their term of surrender.

This caused a massive increase in Germany's national debt and caused a downturn in their economy.

7 0
4 years ago
"Customer Z is a single 26-year-old man who earns $125,000 annually. He informs you that he is getting married and that his new
PIT_PIT [208]

Answer:

In order to reduce taxable income and at the same time meet the customer's need for a large cash down payment, you should advice him to invest in stocks. The stock market generally yields high returns and since the customer is young, he can afford the risk. Also, and probably most important, capital stock gains are taxed at a much lower rate than interest income (vs investing in bonds).

5 0
3 years ago
Hilton hotels' use of customer information software to identify the most profitable customers to direct its services to is an ex
Ksju [112]
Find its target market.......
8 0
3 years ago
Joe is recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial inform
Galina-37 [17]

Answer:

accounting              

Explanation:

Accounting refers to the process for recording financial transactions related to a company. The accounting process involves the review, examination and notification of these activities to supervisory authorities, supervisors and tax collection bodies.

Accounting financial statements are a brief summary of business transactions across an accounting span, summarizing the revenues, financial condition and cash flows of a business.

Accounting is among the most important functions in almost every sector. It can be done by an accountant or a small company manager, or by massive accounting divisions with hundreds of employees in larger businesses.

3 0
3 years ago
Other questions:
  • A company sold equipment for $100,000; the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company
    14·1 answer
  • The online shopping, and online registration are examples of the digital economy.True or false?
    15·1 answer
  • In the 2016 presidential campaign, republicans wanted to focus on stagnant wages, while democrats wanted to talk about declining
    10·2 answers
  • What way of calculating ROI makes it easiest to compare investments?
    15·2 answers
  • All of the following are business-level cooperative strategic alliances EXCEPT: a. competition response strategic alliances. b.
    9·1 answer
  • Rashan's family is always telling him he's worthless and will never be successful at anything he does. Eventually, he reaches a
    6·1 answer
  • The historical cost principle requires that when assets are acquired, they be recorded ata. appraisal value.b. cost.c. market pr
    10·2 answers
  • Receivers of bad news are less disappointed if they know the reason for the rejection, feel the news was revealed sensitively, a
    13·1 answer
  • Suppose Joe's wage increased from $10 per hour to $12 per hour, and over the same time period the GDP deflator increased from 10
    7·1 answer
  • The Federal Reserve buys $38.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is dep
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!