Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>
Answer:
Yield to Maturity (YTM) is 7.94 %.
Explanation:
Yield to Maturity (YTM) refers to internal rate of return that bond holder will earn if he purchased the bond today at the current market price and held it till maturity of the bond.
Yield to Maturity of the the bond = [Coupon payment+ (Future value of bond - Present value of bond / no. of Periods)] / [(Future value of bond + Present value of bond)/2] ---- (a)
Bond maturity period = 20 years
Coupon rate = 8.3 %
Par Value = 1000
No. of periods = 2 x 20 = 40 (semi- annual)
Coupon payment = 8.3 % x 1000 = 83 = 83/2 = 41.5 (Semi-annual)
Present value of bond = 104 percent of Par value = 104
Future value of bond = 1000
YTM = ?
Putting the values in equation (a),
Semi annual YTM = [41.5 + (1000-1040 / 40)] / [(1000 + 1040)/2]
Semi annual YTM = [41.5 + (-40/40) ] / [(1040)/2]
Semi annual YTM= [41.5 - 1] / 1020
Semi annualv YTM = 40.5 / 1020 = 0.0397
Hence, Annual yield to maturity = 0.0397 x 2 = 0.0794 or 7.94 %.
Answer:
Line organization
Explanation:
Based on the information provided within the question it can be said that in this scenario it is pretty clear that Party Pros Inc. is using a Line organization model. This approach focuses on a business model where authority in the organization flows from the top to the bottom. Without seeing the Celebration's organization chart it is clear this is the case because Julio is the owner of the company, meaning there is one individual in charge and the organization is giving the orders from up top to hire more personnel and departmentalize
Answer:
$20,000
Explanation:
Since the cost is allocated equally, the depreciation expense on the purchased equipment will be calculated as:
= <u>Cost of equipment- Scrap value</u>
Useful life
= <u>$100,000 - $0</u>
5 years
= $20,000
Based on the above, the depreciation expense for the year that must be recognized by Noonan Company is $20,000.
