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
Sever21 [200]
3 years ago
7

When the Fed sells government securities in the open​ market, the money supply​ ________ because​ ________. A. ​increases; banks

lose​ liquidity, they make more loans and checking account deposits increase B. ​decreases; banks lose​ liquidity, they make fewer loans and checking account deposits decrease C. ​decreases; banks gain​ liquidity, they make fewer loans and checking account deposits decrease D. ​increases; banks gain​ liquidity, they make more loans and checking account deposits increase E. none of the above
Business
1 answer:
Brums [2.3K]3 years ago
5 0

Answer: Option (B) is correct.

Explanation:

Open market operations: In Open market operations, there is a buying and selling of government securities by the central bank of a nation. It is a monetary policy instrument that is used to control money supply in an economy.

If Fed sells the government securities in the open market then as a result there is a transfer of from public to Fed. So, there is a fall in the money supply because banks lose liquidity. Now, banks are able to make fewer loans to the borrowers and checking deposits also decreases.

You might be interested in
Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and
slavikrds [6]

Answer:

A. Political

Explanation:

PESTEL analysis is an instrument used to analyze and monitor the macro economic environmental factors than can have an effect on the organization.

PESTEL is an acronym for

P - Political

E - Economic

S - Social

T - Technology

E - Environmental

L - Legal

Political Factor - This is all about the role government plays in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions etc.

Studying this would enable organizations respond better to current trends and prepare better for future legislations.

8 0
3 years ago
Eat at State is considering buying a new food truck. It will cost $65,000, but is expected to generate $20,000 in sales over the
Afina-wow [57]

Answer:

It is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.

Explanation:

Since Eat at State is considering buying a new food truck, and it will cost $ 65,000, but is expected to generate $ 20,000 in sales over the next 4 years, and at the end of the 4th year, the truck will be sold to Eat Like a Wolverine in Ann Arbor for $ 10,000 (after taxes), and it will require $ 5,000 in additional Net Working capital that will not be recovered when the truck is sold, and the Dean of Food Services will only authorize the purchase if it is cash positive by the end of the 4th year, to determine, using the payback period method if the truck should be purchased and why, the following calculation must be performed:

-65,000 + 20,000 + 10,000 - 5,000 = X

-70,000 + 30,000 = X

-40,000 = X

Therefore, it is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.

3 0
3 years ago
How do world population and market statistics support the expansion of u.s. businesses into global markets?
ratelena [41]
<span>Countries with fast-grouwing populations have a large pool of workers for businesses to tap. These countries will be looking for businesses to invest in their areas, employing people and letting them produce goods and services that will bring dollars into the local economies, strengthening them and allowing the countries to catch up with other nations.</span>
8 0
3 years ago
Suppose Hank and Tony can both produce corn. If Hank's opportunity cost of producing a bushel of corn is 2 bushels of soybeans a
Alex787 [66]

Answer:

The correct answer is option a.

Explanation:

Comparative advantage refers to the situation where an individual, firm, or nation can produce a good at a comparatively lower opportunity cost.  

It is given here that,

Hank's opportunity cost of producing a bushel of corn = 2 bushels of soybeans  

And,

Tony's opportunity cost of producing a bushel of corn = 3 bushels of soybeans

We see that Hank has a lower opportunity costs in the production of corn. So we can say Hank has a comparative advantage in the production of corn. Or in other words, Hank specializes in the production of corn.

7 0
3 years ago
____ is a general term applied to any use of computers and networking to support the paperless exchange of goods, information, a
malfutka [58]

The phrase "electronic commerce" refers to any use of computers and networking to facilitate the exchange of goods and information without the need of paper. The use of electronic financial transfers and data transmission to complete online purchases and sales is another benefit of this business model.

<h3>How come the business world is so complicated?</h3>

One element that adds to the complexity of the commercial sector is the variety of building uses. Every four years, there is a significant nationwide study of commercial buildings in the United States that looks at a wide range of factors, including energy use.

<h3>What makes up a specific economic sector in a nation?</h3>

The portion of the economy associated with that particular type of industry is known as a sector in that nation.

To know more about Commercial Sector visit:-

brainly.com/question/24219749

#SPJ4

5 0
1 year ago
Other questions:
  • A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La
    9·1 answer
  • Which of the following typically have the highest auto insurance premiums?
    5·2 answers
  • Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigne
    15·1 answer
  • (8 points) The following information relates to the Windsor Company.DateEnding Inventory(End-of-Year Prices)PriceIndexDecember 3
    8·1 answer
  • Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all thr
    14·1 answer
  • What would be a best practice when managing the merchandise at a store?
    8·2 answers
  • 15. If you are the kind of person who wants to succeed in whatever you do, you value
    9·1 answer
  • Holding all other things constant, an increase in the company's required return on investment (ROI) will affect:
    10·1 answer
  • i have a kid named aj he is talking to himself and he is allways yelling can you have me evidence he is from windy hill middle s
    14·2 answers
  • Jose put $200 in a savings acount, where he will earn 10% interest annually. At the end of the year how much money will Jose hav
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!