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Rus_ich [418]
3 years ago
13

In which situation might the federal reserve buy open market operations or lower its discount rates

Business
1 answer:
Effectus [21]3 years ago
7 0

Answer:

In times of economic downturns to stimulate growth

Explanation:

Open market operations are one of the monetary policies used by the Fed to regulate the money supply in the economy. They involve buying and selling treasury bills to the banks and other financial institutions. Open marker buys, and lowering of interests are expansionary policies used to stimulate economic growth.

By buying treasury bills, the Fed adds money to the banks. Banks exchange treasury bills for liquid cash. As a result,  banks end up with excess money in their custody. To make profits, the bank lends out this money to firms and individuals at competitive rates. The availability of easy and low-interest credit encourages borrowing for investments and consumption. Increased economic activities accelerated economic growth. Lowering of discount rates makes loans cheaper, thereby encouraging borrowing.

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During the current year, Awning Company reported investment revenue of $4,000 from long-term investments reported using the equi
ANTONII [103]

Answer:

cash dividends: 3,000

Explanation:

We can solve for cash dividends based on how the equity method works:

Beginning investing

+ proportional net income

<u>-  cash dividends received  </u>

Ending investing

beginning + inomce - dividends = ending

  10,000   + 4,000  - cash dividends = 11,000

cash dividends= 14,000 - 11,000

cash dividends = 3,000

when received, the journal entry for the dividends was as follow:

cash       3,000 debit

    investing                   3,000 credit

to record cash received from investment

7 0
3 years ago
Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specific
Ksenya-84 [330]

Answer:

The correct answer is letter "B": an assembly process.

Explanation:

Assembly processes are the steps a company takes to transform a set of components into a final product. Those components can be manufactured in-house or supplied by other vendors. An organized procedure is followed to assembly one item after the other until the end-good takes form.

8 0
3 years ago
Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $6,100 per cou
yarga [219]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Kenton:

Instructors= $6,100

Denton:

Instructors= $305 per student

A) Sellin price= $347

Kenton:

Sales= 347*20= 6,940

Fixed costs= (6,100)

Net operating income= 840

Denton:

Sales= 6,940

Variable costs= 20*305= (6,100)

Net operating income= 840

B) Sellin price= $227

Kenton:

Sales= 227*40= 9,080

Fixed costs= (6,100)

Net operating income= 2,980

C) Sellin price= $227

Denton:

Sales= 9,080

Variable costs= 40*305= (12,200)

Net operating income= (3,120)

D) Sellin price= $347

Kenton:

Sales= 347*13= 4,511

Fixed costs= (6,100)

Net operating income= (1,589)

Denton:

Sales= 4,511

Variable costs= 13*305= (3,965)

Net operating income= 546

7 0
3 years ago
If your credit reports show different scores, what should you do? A Nothing, the credit bureaus will recognize the mistake and f
erastovalidia [21]
The correct answer is B
4 0
3 years ago
Cassidy is buying a house and is looking for the best home loan to pay for her purchase. What loan should she choose?
babunello [35]
The loan with the lowest APR. I just took the test Apex
5 0
3 years ago
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