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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.

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Answer:

- Chipping away at student loans or getting a secured credit card.

Explanation:

The suggestion that does not depend on the support of a parent or guardian would be 'chipping away at the student loans or getting a secured credit card' as it lays the responsibility on the shoulders of the student which does not require parents' backing. The supportive parents always tend to offer every possible opportunity to their child upto the extent they can afford to provide a better experience and future to their kid.

7 0
2 years ago
Outline the differences between chain stores and departmental stores.​
dlinn [17]

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Explanation:

4 0
3 years ago
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spin [16.1K]
It' typically takes around four years to earn a Bachelor's degree. so i would say either C or D but since it says the BEST answer i would choose D

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2 years ago
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What’s does stockbroker mean?
Flauer [41]

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8 0
3 years ago
Giorgio Italian Market bought $11,000 worth of merchandise from Food Suppliers and signed a 45-day, 8% promissory note for the $
Masja [62]

Answer:

                                                Dr.          Cr.

Purchases / Inventory         $11,000

Promissory Note Payable                  $11,000

Explanation:

Promissory note is a signed document which contains a written promise for payment of stated amount to specific person or bond holder on demand or specified date.

In this case the purchases are made and a promissory note of $11,000 is signed for 45 days at 8% annual rate.

This entry will be recorded as the purchases or Inventory are debited and as promissory note is a short term liability so, promissory note payable is credited resulting increase in inventory as well increase in current liability.

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