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Pani-rosa [81]
3 years ago
14

Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market. If the Fed wants the

federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________.a. purchase; increase b. sale; decrease c. purchase; decrease d. sale; increase
Business
1 answer:
astraxan [27]3 years ago
3 0

Answer:

B) sale; decrease

  • If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market <u>SALE</u> of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will <u>DECREASE</u>.

Explanation:

The federal funds rate is the rate at which banks make overnight loans to other banks or financial institutions. If the supply of money is too high, then the interest rates will start to decrease.

Money is like any other good, and its price is determined by the supply and demand. The higher the supply, the lower the equilibrium price. The equilibrium price of money is the interest rate.

If the Fed wants to avoid the decrease in the interest rate, it must absorb excess supply of money, and the only way it can do it is by selling bonds.

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What are the starting and stopping points of the development of the self during the life course?
Marina CMI [18]

Answer:

Starting Points of the development of the Self.

* When we feel an urge, motivation and desire that we should learn something extraordinary to improve our self.

* When we feel we are lacking something, it could be regarding learning new technology, learning new sports or anything which we feel we are not good at.

* When we see others then instead a jealousy feeling, we find them as a good and better human being than us, then we start idealizing them and followed by learning the same set of skills which we think they possess.

Starting Points of the development of the Self.

* When we start thinking that we know each and everything, that's the point when we stop learning for new skills ans about new things, and ultimately our progress stops there.

* While seeing others, when we feel jealously kind of feelings for them, then instead of admiring their potential we start leg-pulling and other negative techniques, which means we have stopped our own development of the self.

* Instead of taking interests in new skills, knowledge and technology, we start feeling better with the one which we have, not only this, but we also feel that the tings which we possess are the best-est of all, then we stop progressing.

5 0
3 years ago
2. A company made the following merchandise purchases and sales during the current month
Bezzdna [24]

Answer: You need to subtract the following then add what you have left.

Explanation: For example if you had $300 and you spent 200 you have $100 left

4 0
4 years ago
Read the following scenario. An urban area in southern Texas is rapidly growing. The population has almost doubled over the past
nexus9112 [7]
I'm not 100% sue but I think the answer is option D: District boundaries will remain the same, but the voting pattern will shift from Republican to Democratic. Hope this helps!
7 0
4 years ago
Virginia Company, a merchandising firm, operated five sales offices last year at a total cost of $500,000, of which $70,000 repr
Rainbow [258]

Answer:

d. $672,000

Explanation:

In order to find the total budgeted cost of seven sales offices we need to break down the total cost of five sales offices and separate variable and fixed costs. The formula for total cost is as follows:

Total Cost= variable cost + fixed cost.

First we compute variable cost per sales office then calculate total variable costs of seven offices and add them up to find total budgeted cost.

The total cost of five sales offices = $500000 of which $70000 is fixed cost.

If we rearrange the formula of total cost we get total variable cost as follows:

$500000= total variable cost + $70000

Total variable cost= $500000 -$70000

TVC= $430000

Now we calculate variable cost per sales office as follows;

Variable cost/sales office = $430000÷ 5

Variable cost/sales office = $86000

Now that we have variable cost per sales office and fixed cost, we calculate total budgeted cost of seven sales offices.

(Remember! Fixed costs are period costs and don't change as a result of increase in output therefore fixed costs will remain constant for the period.)

Lets calculate budgeted cost for the coming year.

TC=(VC × UNITS) + FIXED COST

Total Budgeted cost of seven sales offices= ($86000×7)  + $70000

TC= $672000

4 0
3 years ago
Lake Corp., a newly organized company, reported pretax financial income of $100,000 for 20X0. Among the items reported in Lake's
liubo4ka [24]

Answer:

b.$0

Explanation:

As we know that

When there is a temporary discrepancy between financial income and taxable income a deferred tax benefit or liability occurs. Temporary difference means an benefit or cost with respect to treatment that has just a timing gap.

Moreover, the Premium on officer's life insurance is tax deductible i.e $15,000  as it is paid by the company due to which difference arise between the financial and taxable income.

And,  

Interest received on municipal bonds $20,000 are mostly exempt from federal income tax.

Therefore, it shows no such difference as it indicates the permanent difference

6 0
4 years ago
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