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worty [1.4K]
3 years ago
10

Which of the following is true of open market operations? Select the correct answer below: Open market operations involves the b

uying and selling of stocks on the New York Stock Exchange Open market operations target the amount of currency in the market. Open market operations involve the purchase and sale of government securities. Open market operations is the process of changing the reserve ratio in the banking system.
Business
2 answers:
pishuonlain [190]3 years ago
6 0

Answer:

Open market operations involve the purchase and sale of government securities

Explanation:

Base on the scenario been described in the question, the option that is true for open market operation is Open market operations involve the purchase and sale of government securities

An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.

zhenek [66]3 years ago
3 0

Answer:

The option that says; "Open market operations involve the purchase and sale of government securities".

Explanation:

The term "open market operation" simply has to do with monetary policy. Open market operation is usually considered as a tool in economics and It is a commonly used by central banks of countries or federal reserves.

The main thing that happens in open market operation is that Government securities are being bought and sold that is the purchase and sale of government securities. The selling and buying of government securities is to make sure that there is reduction in the way money is been supplied.

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If government spending increases or personal income taxes decrease, what are the likely effects on output, price level, and inte
Mila [183]

When there is an increase in government spending, there will be an increase on the output, price level, and interest rates

<h3>What is a government spending?</h3>

This refers to the funds injected to the public sector on the acquisition of services such as education, healthcare, social protection, defense etc.

Most time, the effect of an an increase in government spending leads to an increase on the output, price level, and interest rates as it is a method of stimulate demand.

Therefore, the Option A is correct.

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7 0
2 years ago
Calculate the loan balance for each of the six months. The loan balance is calculated as the additional cash needed for a given
alexandr402 [8]

Answer:

The closing balance from the excel sheet is $5,000.00

Explanation:

Solution

Given that:

The loan balance required l for each month can be computed  as follows:

The loan balance = additional cash needed – cash used to retire debt + loan balance from previous month

Now

By applying the excel formula to perform this task is stated as follows:

D34 = SUM(D31-D33,C34)

The same formula is used to get the values for E34 to I34.

Kindly find an attached copy  of the updated excel sheet after applying above formula which is a part of the solution is as follows:

3 0
3 years ago
How much money is wasted on fraudulent health products each year.
Lubov Fominskaja [6]

Answer:

60 billion

Explanation:

This might help you: The National Health Care Anti-fraud Association (NHCAA) conservatively estimates that 3 percent of all health care spending, or $60 billion, is lost to health care fraud.

Hope this helps :)

Have a nice day!

8 0
2 years ago
In 2005, Clear Channel (an owner of multiple popular radio stations) spun off concert promoter Live Nation into an independent c
lana [24]

The statement the price of radio programming should fall is false.

<h3>What is Complements-in-consumption </h3>

Complements in consumption can be defined as the way in which two or more product complement each other when use of consume together or when use jointly.

Hence, Based on the scenario the statement is false because assuming the both music radio ,and concert are complements in consumption the price of radio  programming will not fall.

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3 0
2 years ago
Fernando Designs is considering a project that has the following cash flows and WACC data. What is the project's discounted payb
bezimeni [28]

Answer:

Discounted Payback period 3 years

Modified Internal rate of return 4.833%

Explanation:

Fernando Designs has following cash flows ,

year 1 : -$900

Year 2 : $500

Year 3 : $500

Year 4 : $500

Using 10% discount factor the cashflows will be,

discounted values

Year 1 : -900

Year 2 : 454.54

Year 3 : 445.45

Year 4 : 4132231

Payback period is -900 + 454.54 +445.45 = 3 years.

Modified Internal rate of return; \sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }

\sqrt[4]{\frac{1314}{900} } = 4.833%

8 0
3 years ago
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