The money multiplier concept uses three key actions that is done by the Fed so as they can widen the economy and these includes the use of a decreased discount rate, the buying government securities, and also by lowering reserve ratio.
<h3>What is expansionary and contractionary monetary policy?</h3>
A monetary policy that is known to be that which helps to lowers interest rates and influence borrowing is called an expansionary monetary policy or one can say a loose monetary policy.
Also, a monetary policy that tends to bring up interest rates and lowers borrowing in any economy is known to be a contractionary monetary policy and also called tight monetary policy.
<h3>Thee potential reasoning behind this lowering to 0% and its intended effect on the economy?</h3>
Note that Expansionary monetary policy aims to increases the money supply while Contractionary monetary policy aims lower the money supply.
Therefore, the use of lower rates of economic growth is one that tens to give more likelihood or chance for the shift to renewable energy. It also leads to more saving, and investing.
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The correct answer would be, Focus on research and development as a form of non-price competition.
Future clothes Inc., a publicly traded company, designs and manufactures wearable technology. Future Clothes should Focus on research and development as a form of non-price competition.
Explanation:
When a company increases its production of goods or services at the same part of the supply chain, this expansion is called as the horizontal integration. Horizontal integration is achieved through increasing production of goods or services through Mergers, acquisitions, internal expansions, etc.
So when Future Clothes have a long period of horizontal integration in the industry, they should now focus on Research and Development in its related products or services as a form of non price competition.
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Failure by a promissory notes maker to pay the amount due at maturity is known as Dishonoring a note.
A dishonored note is a that promissory note which has not been paid by a debtor in a given reasonable amount of time. It causes the creditor to write off the recorded revenue as a bad debt.
With the help of promissory note, a buyer can make a short-term commitment to pay any supplier for merchandise within the stated time period and also at a certain interest rate.
In order to properly record a dishonored note in the financial journal of the organization one must first decide whether he is expecting to collect payment eventually or not.
A bill is always considered as dishonored either by non-acceptance or by non-payment of the bill.
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Answer: The answer is central bank
Explanation:
Budget deficit : This is when government total proposed expenditure for a period is more than the total estimated revenue. When this happens, government get the money to finance the deficit in the budget from the central bank or ask the central bank to print more currency or get aid and grant from foreign aid donors to finance the deficit.
Loan fund to the banking system: This is a function of central bank when they act as lenders of last resort to the commercial bank. If people begins to withdraw their money from commercial banks, the banks may be placed in such a position that they will not have enough cash to pay their customers. They will run to the central bank to borrow money or to rediscount bills and the central bank must not refuse to come to the aid of commercial banks in order to prevent banking crisis which may shake a country's economy.
Sells newly issued government bond : This is when central bank wants to reduce the volume of money in circulation, the central bank sells bond or securities in the open market .people buy with cheque drawn on their deposits in the commercial banks. The central bank then presents the cheque to the commercial bank and draw on their cash reserves by this the cash reserve of commercial banks is reduced and reduce the supply of money in the economy.
Create money out of thin air: This is the central bank function of issuing notes, it is the legal authority to issue notes. When new notes are to be put into circulation, this is done by the central bank .but the new notes are set into circulation through the commercial banks.
Control the money supply : This is the function of central bank to regulate the volume of money in circulation or to mop up excess liquidity in the economy by selling treasury bill through the open market to the members of the public .It collect money from the commercial banks this will reduce the cash reserves of commercial banks and reduce their loan given capacity.
Government bonds, the money supply : The central bank is the legal authority to sell government bonds in order to mop up the excess liquidity in the economy. When their is too much money in circulation, the central bank make use of monetary policy instruments such as the open market operation to reduce the supply of money in circulation.
Setting the pay according to the goals achieved
by a group may not be considered beneficial to everyone, thus decreasing motivation.
Pay-for-performance or according to individual performance may help motivate
the employee but increasing individuality in terms of performance may also decrease
group cohesiveness or group-related values. The speaker here shows depreciation by undervaluing another's work to overvalue or protect one's own.
