All categories

3 years ago

Which of the following events would be likely to increaseincrease the supply of money?

Business

1 answer:

geniusboy [140]3 years ago

8 0

Answer:

D. The Fed decreases the discount rate relative to the federal funds rate.

Explanation:

The discount rate is the interest rate charged by the Central bank when commercial banks borrows funds from it.

When the discount rate is lowered, excess reserves increase and money supply increases.

The reserve requirement is the amount of deposits of commercial banks that should be kept as reserves. The higher the reserve requirement, the lower the money supply.

If banks hold more excess reserves, money supply falls.

An open market sale decreases money supply while an open market purchase increase money supply.

I hope my answer helps you.

You might be interested in

Suppose there will be global catastrophe unless we hold total carbon dioxide emissions at or below 35 million tons per year. As

snow_tiger [21]

If 35 million tons of emissions permits are auctioned off, compared to each person getting 10 pounds of untradable emissions, it is a. better, because it lowers the cost of emissions abatement.

<h3>Why is it better?</h3>

If everyone got 10 pounds of untradable emission, the amount of emissions would be:

= (10 x 7 billion) / 2,000 pound per ton

= 35 million pounds

This is the same as the total amount of the emission permits but it is still more expensive than issuing permits because those permits are tradable.

Non-tradable permits will mean that some will exceed their permit and will be unable to share their emissions.

Find out more on emission permits at brainly.com/question/5130019.

8 0

2 years ago

Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0. How

Anika [276]

Answer:

The NPV will increase by $5,187 following the restructure of the transaction.

Explanation:

We have the cash outflow due to tax payment as followed:

* Before transaction restructured:

Tax payment of 100,000 * ( 1 - 34%) = $66,000 at the end of Year 0;

=> Present value of this cash outflow is: (66,000) / 1.06 = $(62,264)

* After transaction restructured:

Tax payment at the end of year 1: 50,000 * ( 1 -34%) = $33,000;

Tax payment at the end of year 2: 50,000 * ( 1 -34%) = $33,000.

=> Present value of this cash outflows are: (33,000)/1.06^2 + (33,000)/1.06^3 = $(57,077).

=> Increase in NPV after transaction structured will be equal to the saving in present value of cash out flow = (57,077) - (62,264) = $5,187.

So, the answer is NPV will increase by $5,187.

7 0

3 years ago

____ is any technology that aids in gathering information about a person or organization without their knowledge

Mariulka [41]

<span>SPYWARE is any technology that aids in gathering information about a person or organization without their knowledge. It can also send information to another entity without the consumer's consent. In the internet, it is mostly used for tracking and storing internet users' movements on the Web.</span>

7 0

4 years ago

A baseball team plays in a stadium that holds 58,000 spectators. With ticket prices at $10, the average attendance had been 27,0

bixtya [17]

Answer:P(x) = -3000 $\times$ (x) + 57000

Explanation:

Let the demand function be given by p(x)

Let P(x) be the demand for the match at price x

P(x) = a $\times$ (x) + b

27000 = a $\times$ (10) + b

33000 = a $\times$ (8) + b

Solving we get a = -3000 and b = 57000

Thus P(x) = -3000 $\times$ (x) + 57000

5 0

3 years ago

Read 2 more answers

3. Which of the following is not recorded on your credit report?

mamaluj [8]

A.the income is 2963829
B) Jordan p Walter
C)n/a
D) last 2 year
E) yes

3 0

3 years ago

Which of the following events would be likely to increaseincrease the supply of​ money?

Which of the following events would be likely to increaseincrease the supply of money?