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2 years ago

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]2 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

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Clever Cuts is a retail chain specializing in salon-quality hair-care products. During the year, Clever Cuts had sales of $ 39

meriva

Answer:

Sales Revenue $39,300,000

Cost of Goods Sold ($20385000)

Gross Profit $18915000

Selling, General and Administrative Expenses ($7,225,000)

Net Income $11690000

Explanation:

Sales Revenue $39,300,000

Cost of Goods Sold ($20385000)

Gross Profit $18915000

Selling, General and Administrative Expenses ($7,225,000)

Net Income $11690000

Cost of Goods Sold is calculated as (Opening Inventory + Purchases – Closing Inventory) ($3,100,000 + $21,400,000 - $4,115,000).

Sales Revenue is deducted from Cost of Goods Sold to find Gross Profit after which Selling, General and Administrative Expenses are deducted which gives us Net Income of $11690000.

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3 years ago

In what seven (7) way can we promote good marriage in the society

olga2289 [7]

Answer:

1.being loving

2bieng understanding

3being loy

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3 years ago

What system is based on the supply and demand of goods to make a profit?.

Whitepunk [10]

Answer:

B : market economy

Explanation:

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2 years ago

During 2021, its first year of operations, a company provides services on account of $257,000. By the end of 2021, cash collecti

Dmitrij [34]

Answer:

Debit Bad debt expense $15,120

Credit Allowance for doubtful debt $15,120

Being entries to record estimated bad debts

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Account receivables balance as at year end

= $257,000 - $131,000

= $126,000

Allowance for doubtful debt = 12% * $126,000

= $15,120

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3 years ago

ssume you are the Chief Information Officer (CIO)1 of the company that you dream of (any company, real or hypothetical). Give a

MAVERICK [17]

Answer: External threats are almost always malicious, with data theft, vandalism, and disruption of services all possible goals. Internal threats can be equally vicious and may also include blackmail or other illicit activities. Internal threats, however, are not always malicious

Internal threats originate from within the organization. The primary contributors to internal threats are employees, contractors, or suppliers to whom work is outsourced. The major threats are frauds, misuse of information, and/or destruction of information.

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Employee Sabotage and Theft. ...

Unauthorized Access by Employees.

Weak Cyber Security Measures and Unsafe Practices. ...

Accidental Loss or Disclosure of Data

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2 years ago

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

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