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balu736 [363]
2 years ago
11

When the Fed buys​ $100 worth of bonds from a primary​ dealer, reserves in the banking system A. increase by more than​ $100. B.

decrease by​ $100. C. decrease by more than​ $100. D. increase by​ $100.
Business
1 answer:
ruslelena [56]2 years ago
4 0

Answer:

The correct answer is D.

Explanation:

The fed buys $100 worth of bonds from a primary dealer. The fed will pay the dealer for these bonds. This will cause an increase in the total reserves by $100. The money supply will increase by more than $100. The extent of increase in the money supply depends on the required reserve ratio. This is an example of an expansionary monetary policy.

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If an individual investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock mark
sergejj [24]

Answer:

a. False

Explanation:

A "primary transaction" refers to the selling of <em>new stocks and bonds</em> for the first time towards the public. A great example of this is the "Initial Public Offering" <em>(IPO)</em> which allows "public share issuance."

On the other hand, a "secondary transaction" refers to the<em> trading of investors among themselves.</em> There is no involvement of the issuing companies here. So, this means that if an investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock market,<u> the transaction</u><u> doesn't directly involve the issuing compan</u><u>y.</u> This kind of transaction is then called "secondary."

So, this explains the answer.

8 0
2 years ago
The Vogt corporation paid a dividend of $4.20 on its stock in the year just ended. If the dividends are projected to grow at a r
Jet001 [13]

Answer:

cost of equity = 13%

Explanation:

With the info given, we will use cost of equity formula from Dividend Growth Model. THis is given by:

k_e=\frac{D_1}{P_0}+g

Where D_1 is the next year dividend or D_1 = D_0(1+g)

P_0 is current stock price

g is the growth rate

Since D_0 (dividend this year) is 4.20 and g = 6.4%  or 0.064, we can calculate D_1:

D_1=D_0(1+g)=4.2(1+0.064)=4.47

Current share price is 68, so we can now calculate cost of equity:

k_e=\frac{4.47}{68}+0.064=0.13

Hence,

cost of equity = 13%

8 0
3 years ago
Aim higher college has deployed an open source blog package. this package uses a database backend and allows users to create use
Svetradugi [14.3K]
The application administrator should tighten measures on the external application used in the database backend especially when it comes to creating user IDs in order to prevent unauthorized users - any off-campus or even non-affiliated users to indiscriminately post links, especially malware and malicious ones. This can be done by selecting a viable verification method in order to only allow on-campus students to sign-up to the service. 
4 0
3 years ago
Government company meaning
denis23 [38]

Answer:

A government company is a company registered under the Indian Companies Act in which not less than 51% of paid up share capital is held by the central government or any state government or partly by central government partly by one or more state governments.

Explanation:

A government company is a company registered under the Indian Companies Act in which not less than 51% of paid up share capital is held by the central government or any state government or partly by central government partly by one or more state governments.

6 0
3 years ago
Read 2 more answers
Based in topic study materials, discuss how servant leadership contributes to competitive advantage in contemporary organization
Varvara68 [4.7K]

Answer:

A servant leader  takes some additional season of theirs to enable the associations culture that will cause the representatives to have great morals and in this way offer great administrations. It will be useful to the representatives as they would have the option to deliver more in light of the fact that there will be a culture to concentrate consequently would improve the productivity of the association, and in the long run improving the upper hand of the organization.  

A servant leader demonstrates regard to representatives and by along these lines the workers get persuaded to give the association a decent notoriety helping it to increase serious. For example, in a client care association, the supervisor should demonstrate regard to the worker indicating hireling authority by giving the understanding the representative.

servant leader  consistently put their kin in any case. Treating the representatives with genuineness, uprightness, and care and urging them an opportunity to time. For example, in a client relations association, the chief is required to give its representatives the right data about the association with the goal that they can advance the right data to the customers so as to improve the upper hand.  

A servant leader  has a solid conviction that accomplishment of an association can be accomplished by the commitment of each individual in the association. In this manner, the hireling chief will make solid groups that will collaborate and in the end would make the business extraordinary those different contenders

4 0
3 years ago
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