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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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7nadin3 [17]

The correct answer to this open question is the following.

Although you forgot to include the proper context of the question or further references, we can comment on the following.

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Gregory E. Alden is the manager of the company Woodside Hotels, located in Northern California. He was trying to monitor the comments of his high-class clients because Woodside Hotels is in the luxurious hotel business. So knowing that constantly monitoring client's comments on social media pages such as TripAdvisor or Yelp can be an arduous and difficult task, Gregory searched for the best software company to monitor client's comments on social media. That is how he found Revinate, a company that helps managers to track reviews so they can make the best business decisions once they have learned what their customers desire. And that is exactly what I would do to choose the kind of company to know about the preferences of my customers.

7 0
3 years ago
Which of the following statements is true if a​ bond's stated interest rate is higher than the market​ rate?
Feliz [49]

Answer: The bond will be issued at a premium

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Higher interest rate means the company will pay interest to investors mare than i the general rate in market, Therefore, company can charge investors more from a more valuable asset.

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5 0
3 years ago
You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of
Goshia [24]

Answer:

Explanation:

Provided that the demand is inelastic, there would be an increment in revenue.

Total revenue is calculated as the quantity of a good sold multiplied by its price.

There is a close interrelation between price elasticity of demand and total revenue, in the sense that they deal with the same two variables - which are price and quantity.

If the product has an elastic demand, revenue can be increased by decreasing the price of the good. Q will increase at a greater rate, while  P will decrease,  thereby, increasing the total revenue.

If the product has an inelastic demand, then the prices of goods can be increased and sold slightly less of that item but a higher revenue must be obtained.

7 0
3 years ago
according to the basic dcf stock valuation model, the value an investor should assign to a share of stock is dependent on the le
Temka [501]

Answer:

T

Explanation:

7 0
2 years ago
Workers in the nation of Brotherton expect managers to forcefully tell employees what to do, how to do it, and when. On the othe
pogonyaev

Answer:

The answer is B. Socio-cultural

Explanation:

The socio-cultural environment refers to the beliefs, practice, customs, tradition that influences the behaviour of a people that lives in a given population.  

The socio-cultural belief of the  nation of Brotherton is one that believe that all  the planning activities of the organisation should be the duties of manager alone and the employee are just to do as they are told.

However, the American workers participate and make contributions in the decision making process of the organisation.  

       

5 0
2 years ago
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