1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vodomira [7]
3 years ago
8

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder

al Reserve when they find themselves short on reserves. A higher discount rate ___________ banks' incentives to borrow reserves from the Federal Reserve, thereby ___________ the quantity of reserves in the banking system and causing the money supply to (fall or rise).
The federal funds rate is the interest rate that banks charge one another for short-term ___________ loans. When the Federal Reserve uses open-market operations to buy govenment bonds, the quantity of reserves in the banking system __________, banks' demand for borrowed reserves ___________, and the federal funds rate __________.
Business
1 answer:
tigry1 [53]3 years ago
8 0

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

You might be interested in
Donny owns and leases a coal mine to brian. the lease agreement states that brian will pay donny $4 per ton royalty on coal mine
Gnoma [55]

Answer: $25,000

Explanation:

Given Data:

Gross income from coal = $250,000

Income from trucking coal = $20,000

Royalty paid to Donny = $30,000

Taxable income on call excluding depletion = $40,000

Coal depletion rate = 10%

Lease agreement = $4/ton

Therefore:

brian's percentage depletion deduction for the current year is

= gross income x coal depletion rate

= $250,000 x 0.1

=$25,000

5 0
2 years ago
In preparing its August 31, 2010 bank reconciliation, Adel Corp. has available the following information:
saul85 [17]

Answer: C $22,100

Explanation: Bank Reconciliation

8/31/10 Bank Balance $21,650

Add:

8/31/10 Deposit in transit. $3,900

Less:

8/31/10 Outstanding Chq. $2,750

8/30/10 Rtd Chq. $600

8/31/10 Bank Charges. $100

Cash book balance $22,100

5 0
3 years ago
Linda visits her favorite clothing store and is disappointed to discover that the shirt she was hoping to purchase is out of sto
Julli [10]

Answer:

d. backorder

Explanation:

Based on the scenario being described within the question it can be said that the sales associate most likely offered to backorder the item for Linda. This is when a retailer places an order for a product that is no longer in stock for the time being, in order to comply with the customer, but will take a while for that order to come in and for the transaction to be completed.

8 0
3 years ago
Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so
DerKrebs [107]

Answer:

B

Explanation:

8 0
3 years ago
Read 2 more answers
A shop that makes candles offers a blueberry scented candle which has daily demand of 10 boxes. Blueberry candles can be produce
Lostsunrise [7]

Answer:

E. 115 boxes.

Explanation:

d: 10 boxes/day

p: 36 boxes/day

n: 365 days

s: $60

H: $24 box/year

D: d*n

D= 10*365= 3650 boxes/year

EPQ = \sqrt{2DS/H} *\sqrt{p/p-d}

EPQ=\sqrt{2*365*60/24} *\sqrt{36/36-10}  

EPQ= 158.96 = 159 units

I=Q/P * (p-d)

I=159/36 * (36-10)

I=114.83

115 boxes aproximately

7 0
3 years ago
Other questions:
  • Sin Qua Corporation is a company listed on the stock exchange and issues corporate bonds. Which statement is most likely true?
    14·1 answer
  • Traditionally, if sam, who is 17 years old, purchases a television from a store, signs a 11-month contract, and then drops it on
    9·1 answer
  • Which investment has the least liquidity?<br> property<br> stocks<br> a savings account<br> a 401k
    12·1 answer
  • When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.
    8·1 answer
  • Efficiency
    15·1 answer
  • If the Netherlands enjoys comparative advantage in the production of dairy products, it implies that the opportunity cost of pro
    5·1 answer
  • Explain why the scenario below fails to address the protection that patent laws offer inventors.
    9·1 answer
  • The ________ is the fraction of earnings reinvested in the firm.
    14·1 answer
  • Introduce national employment with its importance and examples​
    9·1 answer
  • Hi anyone wanna t alk
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!