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Aneli [31]
3 years ago
10

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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Problems and Applications Q2 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per
kari74 [83]

Answer:

$550,000

Explanation:

Based on the information given the OPPORTUNITY COST OF RUNNING THE HARDWARE STORE will be $550,000 ($500,000+$50,000), which include the amount of $500,000 which is the cost of renting the store as well as to the cost to buy the stock while the $50,000 is her salary as an Accountant, reason been that she would QUIT HER JOB as an accountant in order for her to run the store.

Therefore the OPPORTUNITY COST will be $550,000

3 0
3 years ago
Which financial activity helps a company based in another country?
AlekseyPX
The financial activity that helps a company based in another country is : A. Foreign direct investment

Foreign direct investment is a type of investment in the form of ownership of a business entity by an entity in another country. For example : Berkshire Hathaway ownership of a an entity in Indonesia
7 0
3 years ago
Read 2 more answers
A market-oriented organization believes that the social and economicjustification for an organization's existence is the satisfa
Novay_Z [31]

Answer: True

Explanation: The organizations that are market oriented focus on keeping healthy relationships with their customers and providing them best service for a positive image in the market. The products offered by such organisations are made in such a way that the consumer gets maximum benefit from it and the needs of customers could be satisfied.

Thus, from the above we can conclude that such organisations emphasize on customer satisfaction and needs, therefore, the given statement is true.

8 0
3 years ago
Majestic Homes' stock traditionally provides an 7% rate of return. The company just paid a $2 a year dividend which is expected
liberstina [14]

Answer:

$52

Explanation:

Data provided as per the question

Recent dividend = $2

Market rate of return = 8%

Growth Rate = 4%

(Its expected to increase so it will be (1 + 4%) = 1.4%

The computation of price is shown below:-

Price = Recent dividend × (1 + Growth rate ) ÷ (Cost of equity - Growth rate)

= ($2 × 1.04) ÷ (0.08 - 0.04)

= $2.08 ÷ 0.04

= $52

6 0
3 years ago
Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock
kati45 [8]

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS                       $0.43

Net Income       $73,402

The formula for computing EPS is

EPS = \frac{Net Income}{Number of shares outstanding}

Substituting the values from the question in the formula above we get,

Number of shares outstanding = \frac{73402}{0.43}

Number of shares outstanding = 170702.3256

7 0
3 years ago
Read 2 more answers
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