Answer:
A. YES
B. YES
C. YES
D. NO
E. YES
F. YES
Explanation:
The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed? Answer yes or no to each of the following:
A. The decrease in reserves would also appear on the Fed's balance sheet, but would be offset by an increase in the government's account YES, because the amount was debited on the Federal Reserve Balance Sheet when the money was transfered to the commercial bank in question.
B. The balance sheet for the bank would reflect a decrease in reserves and a decrease in deposits YES because that was a debit transaction for the bank but a Credit transaction for the Federal Reserve.
C. The decline in bank reserves would decrease the quantity of money in the vault. YES, because a decline in the reserve will reduce the quantity of money in vault and in circulation because the Federal Reserve has used Open Market Operation (OMO) to regulate the volumes and velocities of money in circulation.
D. The balance sheet for the bank would reflect an increase in reserves and an increase in deposits - NO. This is because Balance sheets give at a glance financial status of banks. Therefore, there cannot be an increase in the Fictitious Assets when there was a withdrawl or transfer of funds.
E. The increase in reserves would also appear on the Fed's balance sheet, but would be offset by a decrease in the government's account, YES. This is true since the transfer to the Fed has shown increase in the Balance Sheet while the decrease will result in funding statutory expenses of the Government during allocation of funds to the MDAs.
F. The rise in bank reserves would increase in the quantity of money. YES. Definitely, the rise in the bank reserves will increase the volume of money in ciits vault and circulation because the Federal Reserve as an economic policy at the time of its introduction wants more liquidity (money) in the economy. It is an expantionary measure by the Federal Reserve.
<u>Answer:</u>
<em>The practice of buying and selling goods and services over the internet is known as E-Commerce</em>
<u>Explanation:</u>
E-commerce is otherwise called electronic trade or web business. Exchange of cash, assets, and information is likewise considered as E-business. These business exchanges should be possible in four different ways:
Business to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C), Customer to Business (C2B).Any variety of the spelling is right, and everything portrays a similar demonstration of performing business by means of the web.
Answer:
Dr. Truck $80,869
CR. Note Payable $80,869
Explanation:
Note issued is a liability instrument. It is a promise of payment f principal amount and interest after a specific period of time. Zero interst interest bearing not does not offer any interest payment but it is issued at a discounted price . Present value of Note payable is the value that should be recognised as a cost of the truck.
Now calculate the present value of the Note.
PV of Zero coupon bond = FV / ( 1 + r )^n
Where
FV = FV maturity value of the note = $118,400
r = Interest rate = 10%
n= numbers of period = 4 years
Placing Values in the formula
PV of Zero coupon bond = $118,400 / ( 1 + 10% )^4
PV of Zero coupon bond = $80,869
Answer:
c. Real GDP in long run
Explanation:
Potential GDP refers to the level of real GDP in long run.
