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
kozerog [31]
3 years ago
13

If the Fed sells​ $2 million of bonds to the First National​ Bank, what happens to reserves and the monetary​ base?

Business
1 answer:
Sindrei [870]3 years ago
4 0

Answer:

Reserves fall by $2 million, and the monetary base falls by $2 million.

Explanation:

In the books of First National​ Bank, the purchase of $2 million of bonds by First National​ Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.

In the books of the Federal Reserve, The sales of bonds to First National​ Bank will create a liability from the reserve assets.

See attached for the T-accounts explain the answer    

Download docx
You might be interested in
A(n) _____ is a defined group of people that a company feels is most likely to buy a firm’s product. a. target market b. demogra
Yuri [45]

Answer: A. Target Market

Explanation: A target market refers to a pool of potential Individuals, group or consumers which a company has identified as being the most likely to purchase it's product. The target market may be individuals or groups belonging to the same age group, sex, occupation, hobby, education, location, race, skin color or even weight. Identifying a target market enables companies prepare a marketing plan centered around its potential consumers. Failure to identify a target market could be devastating for business growth.

3 0
3 years ago
For each item below, indicate whether a debit or credit applies.
Mandarinka [93]

Answer and Explanation:

The indication of each transaction is as follows

a. Note payable contains credit balance so if there is decrease so it would be shown on the debit side

b. Dividend contains debit balance so if there is an increase so it would be shown on the debit side

c.  Common stock contains credit balance so if there is an increase so it would be shown on the credit side

d. Unearned rent revenue contains credit balance so if there is an increase so it would be shown on the credit side

e. Interest payable contains credit balance so if there is decrease so it would be shown on the debit side

f.  Prepaid insurance contains debit balance so if there is an increase so it would be shown on the debit side

g. Expense contains debit balance so if there is an decrease so it would be shown on the credit side

h.  Supplies contains debit balance so if there is an decrease so it would be shown on the credit side

i. Revenue contains credit balance so if there is an increase so it would be shown on the credit side

j. Account receivable contains debit balance so if there is an decrease so it would be shown on the credit side

8 0
3 years ago
The local government removes a tax on the production of beer in Riverside in an effort to stimulate the economy. At the same tim
Norma-Jean [14]

Answer:

Equilibrium quantity will increase; Equilibrium price is ambiguous.

Explanation:

If the government removes a tax on the production of beer then as a result the producers of beer will increase their production level and this will increase the supply of beer in an economy. Therefore, there is a rightward shift in the supply curve of beer.

Simultaneously, the students are ready to party in the new quarter which indicates that the demand for beer increases. This will shift the demand curve for beer rightwards.

As a result of these shift in the demand curve and in the supply curve of beer, the equilibrium quantity of beer increases and the effect on equilibrium price of beer is ambiguous because that will be dependent upon the magnitude of the shift in the demand and supply curve.

3 0
3 years ago
Tgif. chris and terry have been trying to live within their budget but miss going out to dinner on friday nights. they decide no
Nikitich [7]

45 quarters +120 dimes  = 165 coins

45(.25) + 120(.05) =

11.25 +  + 12.00 = 23.25

There are 45 quarters and 120 dimes.

6 0
3 years ago
How to make a peanut butter and jelly sandwich essay?
katrin2010 [14]
To start you need your hands. Go to the kitchen, walk over to the sink and turn on the water. Get your hands wet put some soap in them and rub them together. Now that your hands are rubbed clean, stick them under the running water and rinse them off. Turn off the water and dry your hands with a paper towel or a kitchen towel. Now that your hands are clean, prepare to make a peanut butter and jelly sandwich.
Now that you are already in the kitchen get out a plate or napkin, if you choose a plate choose a paper plate less dishes to do. Then you need to get the loaf of bread, open it up and take out your two slices of bread. Now that you have your two slices out, you can put back the rest of the loaf. Take your two slices and set them on the plate next to each other not on top of each other.
Now you need to find a knife. It has to be the right knife no steak knife for this job. You need a good old-fashioned butter knife that will be the utensil you need. I hope that you know where the knives are in your house, in a drawer with all the other silverware. Now that you found the butter knife, take it out and set it on the counter next to your plate.
After the knife, you need one of the most important items, the jelly. So now you need to go to the refrigerator and find which flavor you would like to use. Even though you might only have one or two choices (I mean it is your fridge not a grocery store). Grab your selection and bring it to the counter where your other items are. Now you open the jelly up then pick up the knife. Scoop some out onto one of the slices of bread, put down the jar and pick up the slice of bread with the jelly on it. Now spread the jelly
4 0
3 years ago
Other questions:
  • Thyimach, a machinery manufacturing company, has been purchasing iron shafts from metaljun, a supplier of iron and steel materia
    9·1 answer
  • A survey of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the _____ market, on average, was m
    6·1 answer
  • Blue Company owns 80 percent of the common stock of White Corporation. During the year, Blue reported sales of $1,000,000, and W
    12·1 answer
  • ________ is an annuity with payments made at the beginning of each period.
    7·1 answer
  • What is risk pooling???
    14·1 answer
  • Your discount brokerage firm charges $7.95 per stock trade. how much money do you need to buy 200 shares of pfizer, inc. (pfe),
    9·1 answer
  • 1. What is global business?
    11·1 answer
  • In the context of strategic human resources management, people can increase _____ by helping lower costs, providing something un
    15·1 answer
  • Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by
    10·1 answer
  • Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!