Answer:
Reserves fall by $2 million, and the monetary base falls by $2 million.
Explanation:
In the books of First National Bank, the purchase of $2 million of bonds by First National Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.
In the books of the Federal Reserve, The sales of bonds to First National Bank will create a liability from the reserve assets.
See attached for the T-accounts explain the answer
The goal of any credit card holder should be to C.) AVOID EXCESSIVE CREDIT CARD DEBT.
Credit cards are used for the purpose of convenience. Instead of bringing cash to pay for purchases, credit cards are swiped as payment for said purchases. These cards are short-term loans. Its balance should be paid before due date to avoid paying for interest. Its use should not be abused.
1. Unions have been in decline since the 1960s because of
Answer: <u>A. foreign competition.</u>
Explanation: Unions were often conducted in the past in order to protect workers from<em> "arbitrary decisions" </em>of employers. Such decisions resulted to the<em> laying off of workers </em>and<em> cutting of wages</em>. On the contrary, business owners have a different goal. They wanted to make more profit by cutting the wages, so they didn't like the unions. However, unions have been in decline in the 1960s, mainly because of international/foreign competitions. This is because the "bargaining power of the unions as they represent the employees were reduced."
2. When a bank evaluates a person for a loan, what does the word "capacity" refer to?
Answer: <u>C. The ability to make payments on time.</u>
Explanation: A bank evaluates a person for a loan according to his "capability to pay" the loaned amount. It is not according to his willingness to pay, but to his<em> "ability to return the money</em>." In order to know whether a person is capable of repaying the money on time, the bank analyzes the borrower's gross income and his debt.
Answer:
Explanation:
People who want to obtain credit goods services from financial institutions can use their economic political property rights to do so.
plz mark as brainliest
