Ask question

Ask question

All categories

3 years ago

6

When the Fed wants to expand the money supply through open market operations, it:______

1 answer:

Volgvan3 years ago

6 0

Answer:

A.

Explanation:

When the Fed wants to expand the money supply through open market operations, it purchases government securities from member banks. They do this in order to control the amount of money that travels through the countries banking system so they can move along with the monetary policies that they have in place.

You might be interested in

Which of the following principles underlies the interaction of individual choices? a Marginal analysis is used for "how much" de

GalinKa [24]

Answer:

d There are gains from trade.

Explanation:

A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).

Thus, trade creates an enabling environment that suits a specific service provider or producer of a particular product.

Basically, the interaction of individual choices underlies the fact that there are gains from trade.

This ultimately implies that, as a result of the difference between human needs and wants, there is always an opportunity for various producers to manufacture goods and services to meet the needs or requirements of these customers.

6 0

3 years ago

Villalpando Winery wants to raise $35 million from the sale of preferred stock. If the winery wants to sell one million shares

statuscvo [17]

Answer:

(a) $4.2

(b) $5.6

(c) $2.8

(d) $2.45

(e) $2.1

(f) $1.05

Explanation:

Given that,

Total amount of capital raised from the sale of preferred stock = $35 million

Number of shares = 1 million

Price per share = Total capital raised ÷ Number of shares

= $35 million ÷ 1 million

= $35 per share

(a) If a Expected rate of return = 12 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.12

= $4.2

(b) If a Expected rate of return = 16 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.16

= $5.6

(c) If a Expected rate of return = 8 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.08

= $2.8

(d) If a Expected rate of return = 7 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.07

= $2.45

(e) If a Expected rate of return = 6 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.06

= $2.1

(f) If a Expected rate of return = 3 percent

Annual dividend = Price per share × Expected Rate of return

= $35 per share × 0.03

= $1.05

8 0

2 years ago

Which of the following is not an input to the aggregate planning process? A. demand forecast B. cost information C. policies on

ale4655 [162]

Answer:

The correct answer is E. master production schedules.

Explanation:

Master production schedules is not an input to the aggregate planning process all other options are its input,

Aggregate planning process is an attempt to respond to predicted demand within the constraints set by product, process and location decisions.

Hence, master production schedules is not a relevant input for this planning process but can be a result of the aggregate planning process. In other words master production schedule is formed after aggregated planning has been completed.

6 0

2 years ago

Read 2 more answers

Abraham found a $1,000 face value bond that belonged to his father. He checked The Wall Street Journal and found the bond was cu

asambeis [7]

Answer:

Premium

Explanation:

Whenever a bond sells for more than its face value, it sells at a premium, which means that the investors are willing to pay more for the bond than its face value. This happens when the coupon payment percentage on the bond are higher than the yield to maturity of the bond, because the investors required return is the yield to maturity, when the bond pays more than the required return the investors are willing to pay more for the bond.

4 0

2 years ago

Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, to

andriy [413]

Answer:

Variable cost per unit= $8.4

Explanation:

<u>First, we need to calculate the total cost for each level of machine hours:</u>

Low activity level:

Total cost= 22,000*33.4= $734,800

High activity level:

Total cost= 25,000*30.4= $760,000

<u>Now, we can determine the variable and fixed costs:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (760,000 - 734,800) / (25,000 - 22,000)

Variable cost per unit= $8.4

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 760,000 - (8.4*25,000)

Fixed costs= $550,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 734,800 - (8.4*22,000)

Fixed costs= $550,000

8 0

3 years ago