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balu736 [363]
3 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]3 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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The Fed wants to fight inflation. What action should they take regarding the discount rate, the RR, or open market operations?
Sergio039 [100]

Answer: See explanation

Explanation:

Inflation is when there's a general increase in the price level in an economy. To tackle inflation, the Fed can increase the interest rate as this will discourage people or firms from borrowing and hence there'll be a reduction in the money supply.

Also, the Fed can sell bond to the public, thereby taking in the cash in the economy and reducing the money supply thus reducing inflation. Lastly, the Fed can also increase the reserve ratio for banks. When this is done, there'll be lesser money available in the economy.

4 0
3 years ago
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
Savatey [412]

Answer: $1,063,000

Explanation:

Net realizable value is the value of an asset that a company will get when the asset is sold minus the cost that came with the asset sales.

The net realizable value of the accounts receivable will be the accounts receivable of $1,100,000 minus the allowance for uncollectible accounts which was given as $37,000.

= $1,100,000 - $37,000

= $1,063,000

7 0
3 years ago
When we read a visual text, we look for certain conventions to help us:
klemol [59]

Answer:

D is the answer

Explanation:

6 0
2 years ago
1. Identify the factors that impact the social responsibility policies implemented by businesses.
andreyandreev [35.5K]

Answer:

Number one is the answer

Explanation:

7 0
3 years ago
Inventory records for Dunbar Incorporated revealed the following:Date Transaction Number of units Unit CostApr. 1 Beginning inve
finlep [7]

Answer:

Explanation:

1. Calculate ending inventory        Rate per unit       Total cost

                         number of units        ($)                          ($)

Beg bal (April1)  450                         2.19                       985.50

Add:purchases  

April 20             410                            2.69                      1102.90

-----------------------------------------------------------------------------

Total goods

av for sale         860                                                          2088.40

Less: Sales:

During April       590

--------------------------------

Ending inventory 270

2. Cost of ending inventory = 270*2.19=$591.3

7 0
3 years ago
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