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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.

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"The factor(s) which cause(s) a movement along the demand curve include(s):

Oksanka [162]

Answer: Option D

Explanation: In simple words, movement along the demand curve refers to the change in the demand of a product due to change in its price. When there is a change due to factors other than price then such change brings shift in the demand curve.

In the movement, the demand of a commodity remains constant with all other factors such as advertising, income of consumers etc.

Hence from the above we can conclude that the correct option is D.

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3 years ago

The following are sales revenues for a large utility company for years 1 through 11. Forecast revenue for years 12 through 15. B

Marina CMI [18]

Answer: i hope this helps some its all i can do for now

Explanation:

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3 years ago

our business plan calls for sales of $45,000 in year 1 with compound growth of 30% per year thereafter. What are your projected

Law Incorporation [45]

477,202 are the projected sales after year 10.

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3 years ago

Which of the following is an essential part of being an entrepreneur?

Molodets [167]

Answer:

B. Taking risks.

Explanation:

4 0

4 years ago

Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig

marshall27 [118]

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

(B) A fixed exchange rate regime provides certainty about the value of a currency, for example, when the exchange rate between Philippine Pesos and Arab Emirate Dollars is fixed at 10PHP - 1AED, traders in this currency will be certain that at any planning time in business, investment or consumption, 10 PHP will be equal to 1 AED.

(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

8 0

3 years ago