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2 years ago

When the Fed sells government securities, the banks':

Business

1 answer:

kykrilka [37]2 years ago

3 0

Answer:

The correct answer is option B.

Explanation:

When the Federal reserve bank sells government securities, the banks will purchase them and pay back fed. This payment is made out of banks' reserves. This causes the reserves to decrease.

As reserves decline, the banks will be able to provide fewer loans. Consequently, this decrease in lending will further cause the money supply to decrease.

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A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $

bulgar [2K]

Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.

The formula to compute the depreciation under straight lie method is shown below:

= $\dfrac{(original\ cost - salvage\ value)}{useful\ life}$

= $= \dfrac{(\$100,000 - \$15,000)}{10}$

= $8,500

The depreciation amount under straight line method should remain same over the estimated useful life

So, the second year’s depreciation for this equipment is $8,500

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3 years ago

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?

Veronika [31]

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

6 0

3 years ago

Stephanie orders office supplies every month. She is making a because she always bases the order on current inventory levels, wh

Umnica [9.8K]

Answer:

She is making a PROGRAMMED DECISION because she always bases the order on current inventory levels, which are accurate and up-to-date?

Explanation:

Programmed decisions are routine decisions that are carried out following established procedures. This type of decisions are made generally without much consideration because they do not include important aspects of the organization's functions. Sometimes they can even be automated specially if they apply to small purchases like office supplies which can be made only by checking the inventory level.

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2 years ago

PLEASE HELP ME ILL MAKE YOU BRAINLIEST

Alik [6]

Answer:

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Explanation:

4 0

3 years ago

In a statement of cash flows, the sum of cash inflows and outflows is equal to:

PolarNik [594]

When in the statement of cashflows, the cash inflows and the outflows are added, the result is the change in the cash balance. 

The statement of cashflows shows the movement of cash in a company and how much cash the company is left with at the end of the period.

The statement includes:

Cash outflows which are deductions
Cash inflows which bring in money

Cash outflows are denoted in negatives and when added to cash inflows, show the change in the cash that the company has / its balance.

In conclusion, adding the cash inflows and outflows shows the change in cash.

Find out more at brainly.com/question/15214250.

5 0

2 years ago