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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.

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The two major markets in the circular flow of income and expenditure are the:________

Arada [10]

Answer:

[2] goods market and factor market.

Explanation:

The circular flow of income shows how exchange of money, goods and services occur in an economy.

the two flow circular income model consists of an household and a firm.

The household buys factors of production from the household in exchange for money (firms buys from the factor market). In return, households receive payment.

households then go to the goods market to purchase goods and services.

3 0

3 years ago

Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a shar

Lana71 [14]

Answer:

$99.3625

Explanation:

The computation of ex-dividend stock price is shown below:-

Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)

= $105.64 - $7.75 × (1 - 19%)

= $105.64 - $7.75 × 0.81

= $105.64 - 6.2775

= $99.3625

Therefore for computing the ex-dividend stock price we simply applied the above formula.

3 0

3 years ago

Orchard Farms has a pretax cost of debt of 7.29 percent and a cost of equity of 16.3 percent. The firm uses the subjective appro

svp [43]

Answer: Net present value = $446,556

Explanation:

First we'll compute the Weighted Average Cost of Capital :

Weighted Average Cost of Capital = $K_{e} \times W_{e} + K_{d} \times W_{d}$

= 0.163× $\frac{1}{1.48}$ + 0.0729× (1 - 0.35 )× $\frac{0.48}{1.48}$

= 0.1255

where;

$K_{e}$ = Cost of equity

$W_{e}$ = Proportion of equity

$K_{d}$ = Cost of debt

$W_{d}$ = Proportion of debt

Now, we'll compute the cost of capital using the following formula:

Cost of capital = Weighted Average Cost of Capital + adjustment factor

= 0.1255 + 0.0125

= 0.138 or 13.8%

∴ Net present value = Cash outflows - Total PV of cash flows

= $3,900,000 - $1,260,000 (Annuity value of 13.8% for 5 years)

$= 3,900,000 - 1260000 \times \frac{[1-(1+13.8)^{-5}]}{13.8}$

= $3,900,000 - $3,453,444

= $446,556

Therefore, the correct answer is option(b).

5 0

3 years ago

Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6.0 million. Sultan pays out

Kisachek [45]

Answer:

A) $60.00

Explanation:

to calculate the value of Sultan's stocks, we need to use the growing perpetuity formula:

stock price = dividend / (required return rate - growth rate)

dividend = ($6,000,000 x 60%) / 1.2 million shares = $3,600,000 / 1.2 million shares = $3 per share
required return rate = 10%
growth rate = 5%

stock price = $3 / (10% - 5%) = $3 / 5% = $60 per share

5 0

2 years ago

In negative self talk, filtering is when a person _______. a. Focuses only on their problems, ignoring their successes b. Blames

Ierofanga [76]

Answer:

In negative self talk, filtering is when a person Focuses only on their problems, ignoring their successes

Explanation:

In negative self talk, filtering is when a person is being negative filtering positive stuff and turning it to something negative instead.

For example if someone passes a test but instead of being proud they feel as if they could have tried harder or gotten a higher grade, that person is filtering their success into negative things.

Hope this helps, Have a great day! :D

6 0

3 years ago

Read 2 more answers

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?