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Romashka-Z-Leto [24]

2 years ago

11

What is the purpose of the federal reserve's federal open market committee and its activities?

1 answer:

juin [17]2 years ago

5 0

Question: What is the purpose of the federal reserve's federal open market committee and its activities?

Federal Open Market Committee. The Federal Open Market Committee, or FOMC, is the Fed's monetary policymaking body. It is responsible for formulation of a policy designed to promote stable prices and economic growth. Simply put, the FOMC manages the nation's money supply.

Hope this helps, have a good day. c;

You might be interested in

Bond issue costs reduce the cash proceeds from the issuance of debt. do not affect the cash proceeds from the issuance of debt.

tia_tia [17]

Answer:

increase the effective interest rate of borrowing

Explanation:

Cost of debt refers to the total cost a company incurs for raising debt which includes fixed coupon rate payments to bondholders.

Cost of debt is calculated using the following formula:

$K_{d} = \frac{I(1\ -\ t)}{NP}$

wherein $K_{d}$ = Cost of debt

I = annual rate of coupon payment

t= tax rate

NP = Net proceeds which is par value less issue expenses

when NP is taken as the base, while calculating cost of debt, it is termed as effective interest rate.

So, bond issue costs reduce the net proceeds and thus, increase the effective interest rate of borrowing for the issuer company.

4 0

2 years ago

Ziegler Company properly applies the lower of cost and net realizable value rule and determines that its inventory value has dec

vichka [17]

Answer:

A) Recognize the write-down as a separate line item.

Explanation:

IAS 2 Accounting for Inventory requires that inventory be recognized at the lower of cost or net realizable value. Inventory is a balance sheet item which is initially recognized at cost.

However, once there is an indication that the cost is lower than the net realizable value, the carrying amount of inventory is written down with the write off recognized as a separate line in the P/l and not as an addition to the cost of goods sold.

Hence the right option is A) Recognize the write-down as a separate line item.

8 0

3 years ago

Lynette received her bank statement for the month and she is now comparing it with the transactions that she logged in her check

Svetradugi [14.3K]

Answer:

C. Bank interest payment

Explanation:

Lynette will not compute the interests earned on his amount in his checkbook.

A banking fee will reduce the amount in the statement to the checkbook

A penalty exceeding transaction limit will also reduce the amount in the statement to the checkbook

ATM withdrawal not logged in the checkbook could also increase the check book figure and reduce the bank statement instead.

Thus the answer is C. Bank interest payment.

7 0

3 years ago

Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter

Sav [38]

Answer:

<em>The GDP Rounded to the answer to the nearest ten = $21 trillion</em>

Explanation:

What Is GDP?

<em>Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health. </em>

<em>Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.</em>

<em></em>

<em>Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is: </em>

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = <em>$20.8 trillion </em>

<em>GDP = $20.8 trillion </em>

<em />

<em>Rounding the answer to the nearest ten = $21 trillion</em>

8 0

3 years ago

What would a central bank need to do to reverse the effects of a favorable supply shock on inflation? what would its reaction do

denis-greek [22]

A favorable supply shock is a sudden increase in supply that makes the short-run aggregate supply curve (SRAS) shift to the right, average price levels go down and real GDP also shifts to the right. In this case, average price levels go down as shown in the figure below from p1 to p2 SRAS shifts right.

This may make create deflation in an economy and discourage new producers to enter the market, to bring back inflation, the central bank may reduce interest rates and decrease the money supply in the market, and in short, will follow expansionary monetary policy. This will make people demand more and hence as aggregate demand shifts to correct average price levels may again go up. This move will create new jobs in the market as aggregate demand will increase in the short term.

A supply shock is an event that causes unexpected cost increases or production disruptions. This shifts the short-run aggregate supply curve to the left, boosting inflation and lowering real domestic production.

Learn more about supply shock at

brainly.com/question/9270152

#SPJ4

6 0

1 year ago