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blondinia [14]
3 years ago
4

When the Fed undertakes reverse repo transactions with financial institutions, it is trying to Multiple Choice increase the mone

y supply. reduce the federal budget deficit. increase the federal budget deficit. reduce the money supply.
Business
1 answer:
Neko [114]3 years ago
4 0

Answer: Reduce the money supply.

Explanation:

When the Fed judges money supply to be higher than it should be, one of the ways it can reduce money supply is to embark on a Reverse Repurchase agreement.

This agreement means that the Fed is selling securities to financial institutions and will buy them back at a higher rate in the future. The money that the financial institutions pay the Fed will leave the market and go to the Fed thereby reducing the money supply in the Economy.

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Answer:

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Credit: Actual Indirect Material Costs $550

<em>Transferred Raw Material to Production.</em>

Explanation:

Material Requisition is form in which a production department requests a Raw Material Department to release the Raw Material into a Production Phase.

The Indirect Material costs are those which are not easily identified and are not usually a part of finished good or end product.

The Cost of Actual Indirect Material is given so we can have the above Journal entry for material requisition.

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