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4 years ago

The Federal Open Market Committee promotes price stability and economic growth through

Business

2 answers:

KengaRu [80]4 years ago

7 0

I believe the answer is: management of the money supply

The Federal Open Market Committee is established in order to control the rate of inflation that exist in the country.

As the money circulated in the market increased, the rate of inflation tend to also be increased. Because of this, management of money supply to control the amount of money circulated is necessary in order to maintain price stability and economic growth.

damaskus [11]4 years ago

4 0

Federal Open Market Committee holds regularly scheduled meeting per year. Meeting's agenda includes reviews economic and financial conditions. They also determines stance of monetary policy and assesses the risk to its long run goal of price stability and sustainable economic growth.

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First, think about the way in which interest on municipal bonds is treated from a federal income tax point view. In this light,

spin [16.1K]

Answer:

4% (exactly 4.4%)

Explanation:

A taxable bond is a debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what s/he will have left in income after taxes are taken.

Step 1:

Find the reciprocal of your tax rate,

(1-22%) = 1-0.22 = 0.78

Step two:

Divide this into the yield on the tax-free bond to find out the tax-equivalent yield.

3.5/0.78 = 4.4 ~ 4%

7 0

3 years ago

A retailer is considering investing £190,000 in a second store , the probability that sales will be £300,000 is 0.6 and the prob

KIM [24]

D............................................................

7 0

3 years ago

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 fo

Naya [18.7K]

Answer:

d. Work in Process 150,000 DEBIT

Wages Payable 150,000 CREDIT

Explanation:

The direct labor will the wages accrued for production orders. The general factory use will be part of the actual factory overhead. It should not be considered as direct labor. It is indirec tlabor, a component of manufactring overhead.

We debit work in process as it represent an assets, these units will be finished, sell and collected; completing the conversion cycle of assets.

While the wages are credited as thy represent an obligation to pay (liabilties)

6 0

3 years ago

Your company issued 1,000, 3.8% bonds (face value of each bond is $1,000) at 101.8250 on July 1st, 2019. The bonds are due on Ju

Soloha48 [4]

Answer:

In this problem, 3.8% coupon bearing bond of $1,000 each has been issued. Total 1000 bonds are issued. Each has been issued at 101.8250%. So total amount realized on issue is $1,018,250. It is the value of bond calculated at market rate. Value of a bond is the sum of the present value of cash flows. Here bond has 5 years duration. Interest is paid semiannually. So after every six month, interest payable is -

Calculate present value of 10 such semiannual payment plus principal amount payable at the end of 5th year. Add them. The amount will be current issue price of bond.

So premium amount at the time of issue is-

This premium will be amortized in 5 years period along with each semi annual interest payment is made. So on maturity, no premium amount will be left.

Here amortization will be made at effective rate. Here effective rate will mean market rate. It is 3.4% i.e. 1.7% semi annually. This effective rate is applied on carry balance of bond. Carry balance of bond is nominal value of bond plus unadjusted portion of premium.

Consider the table below. It shows calculation of effective interest rate. First effective rate is 1.7% on carry value of $1,018,250. It is $17,310. But interest actually payable is $19,000. So difference is amortized portion of premium. It is-

This amortized portion will reduce premium balance. So effective carry value of bond in the book will be

Second semiannual effective interest will be 1.7% on $1,016,560. This process will continue for 10 such semi-annual payments. Thus after 10 payments, premium account will have zero balance. Only $1,000,000 balance will appear in 3.8% bond account. It will be finally paid off by debit in 3.8% bond account and credit in cash account.

Explanation:

3 0

3 years ago

Which of the following is true of a good survey about a particular industry

prohojiy [21]

The answer is: D. it has a broad sample, including people who know nothing about the industry.

Any industry consist of three players. The producers, the consumers, and the regulators. Consumers are the one that made the most purchase for the industry and can influence it, but they tend to know nothing or very little with the industry, which is why such sample is needed.

6 0

3 years ago