All categories

3 years ago

Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply?

Business

1 answer:

Rainbow [258]3 years ago

8 0

Answer:

The correct answer is option a and c.

Explanation:

The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.

At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.

The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.

You might be interested in

You are to receive $500 at the end of one year; $250 at the end of two years; $300 at the end of three years. if the interest ra

Ulleksa [173]

The value is 210 dollars

6 0

3 years ago

Explain six Differences between private and public company

elena-s [515]

<h3>Question:</h3>

•explain six Differences between private and public company.

Answer:

•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.

Explanation:

#Let's Study

#I Hope It's Help

#Keep On Learning

#Carry On Learning

6 0

2 years ago

Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by S

julsineya [31]

Ray is a shareholder of a small company. When the director falls to undertake an action it falls under derivative suit.

Explanation:

Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
If in a company the employees, the directors as well as the officers are not ready to file a complain against the third party then the shareholder has the right to file a complaint against the third party.
Derivative suit is normally filed by the shareholder when there is a mismanagement in the company. To stop the illegal work this action is being taken.

4 0

3 years ago

The county government has decided to redo the street you live on and plans to block the street off which causes you and your nei

Anastaziya [24]

Answer:

Path A-F-G-H is the critical path

Explanation:

Path A-F-G-H is the longest path on the network with length of 30 days. A path with the longest length is the critical path.

8 0

3 years ago

Lamey Co. has an unlevered cost of capital of 10.9 percent, a tax rate of 35 percent, and expected earnings before interest and

mart [117]

Answer:

cost of equity is 11.60 %

Explanation:

Given data

cost of capital = 10.9 percent

tax rate = 35 percent

earnings = $21,800

bonds outstanding = $25,000

rate = 6 %

to find out

cost of equity

solution

we will find first value of unlevered

value of unlevered = earning ( 1 - tax rate ) / cost of capital

value of unlevered = 21800 ( 1 - 0.35 ) / 0.109 = $130000

value of unlevered will be for firm = 130000 × bond outstanding × tax rate

value of unlevered will be for firm = 130000 × 25000 × 35%

value of unlevered will be for firm = $138750

so value of firm will be = bond outstanding + equity

so equity will be = 138750 - 25000

equity = $113750

so now

cost of equity will be = cost of capital + ( cost of capital - rate) (bonds / equity ) ( 1 - tax rate )

cost of equity will be = 10.9%+ ( 10.9 % - 6%) (25000 / 113750 ) ( 1-0.35)

so cost of equity = 11.60 %

6 0

3 years ago