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
Bond [772]
2 years ago
14

Suppose you examine the central bank’s balance sheet and observe that since the previous day, reserves had fallen by $100 millio

n. In addition, on the asset side of the central bank’s balance sheet, securities had fallen by $100 million. Do you think the central bank was aiming to increase, decrease, or maintain the size of the money supply by carrying out the changes described to its balance sheet
Business
1 answer:
aksik [14]2 years ago
6 0

Answer:

The Central Bank is trying to increase money supply.

Explanation:

When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.  

It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.

In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.

In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.

Cheers!

You might be interested in
This type of file is created when you save your word processing document.
rosijanka [135]
I believe the answer is data
5 0
3 years ago
Read 2 more answers
If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing pro
lilavasa [31]

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

The algebraic formulation of the constraint is shown below:

Given that

The number of hours taken per unit of x is 4 hours

And the number of hours taken per unit of x is 2 hours

And, the maximum hours available is 100

Now based on the above information

The  algebraic formulation of the constraint is

= 4X+2Y ≤ 100

hence, the same is to be considered

6 0
3 years ago
4. List three reasons for dividing a grill into zones of varying heat intensity.
SCORPION-xisa [38]

In the United States broiling is a top-down heat whereas grilling is a bottom-up heat. Grilling is anything where heat is aimed at food, top, side, or down. Baking in the UK is the same as in the U.S. (convective or ambient temperature equivalent cooking.)

Hey only know #6 so i hope this helps

3 0
3 years ago
Sherman, Inc. manufactures chainsaws that sell for $65. Each chainsaw uses $14 in direct materials and $9 in direct labor per un
anzhelika [568]

Answer: $18

Explanation:

Based on the information,

Sales revenue = $65 × 225 = $14625

Cost of goods sold = (45 × $20) + (1125 × $4) + (225 × $14) + (225 × $9)

= $900 + $4500 + $3150 + $2025

= $10575

Gross profit = Sales revenue - Cost

= $14625 - $10575

= $4050

The gross profit for one chainsaw will be:

= $4050/225

= $18

6 0
3 years ago
Brandon's wallet slips from his jacket pocket in the mall. By the time he realizes his wallet is missing and reports the loss, a
VikaD [51]

Answer:

$950

Explanation:

Since the total amount of items purchased by the thief is $950, then Brandon has to pay back the amount deducted from his card.

4 0
3 years ago
Other questions:
  • Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both insi
    12·1 answer
  • Bargain Central Furniture, Inc., completed the following treasury stock transactions:
    12·1 answer
  • If the exchange rate for Mexican pesos has changed from 10 pesos to 9 pesos per dollar, _____.
    13·2 answers
  • Now that you are successful in your new position, you have decided to reward yourself with a new (or new to you) vehicle. Source
    9·2 answers
  • Why didn’t worldcom try to structure the transactions to get a “step-up” in the tax bases of mci’s assets(?
    7·1 answer
  • A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,
    15·1 answer
  • An investor purchases a long call at a price of $3.05. The strike price at expiration is $46. If the current stock price is $46.
    11·1 answer
  • A company has a total amount of 15 hours for one specific resource. The upper limit of this resource is 18 (the right-hand side
    11·1 answer
  • Two roadway design are under consideration. Design 1A will cost $3 million to build and $100,000 per year to maintain. Design 1B
    8·1 answer
  • What is globalization in business.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!