Fed can <u>purchase</u> government bonds or it can <u>extend</u> discount loans to commercial banks.
The Fed creates cash via buying securities on the open marketplace and including the corresponding funds to the financial institution reserves of commercial banks. Banks then grow the money deliver in flow even extra by using making loans to consumers and agencies.
One manner to increase a bank's amount of required reserves is to: increase deposits. One reason why banks are required to deposit a minimal quantity of reserves on the Federal Reserve is so that: the Federal Reserve can manipulate the capacity of banks to lend cash to others.
The term commercial bank refers to a financial group that accepts deposits, gives checking account offerings, makes various loans, and gives fundamental financial products like certificates of deposit (CDs) and financial savings accounts to individuals and small organizations.
Learn more about commercial banks here brainly.com/question/4423138
#SPJ4
Increases in government spending are not very effective in offsetting real shocks because they shift the aggregate demand.
<h2>Definition of Aggregate Demand</h2>
Aggregate demand is the value of all requests for all types of goods and services produced in a certain period. The demand value contained in this aggregate will be expressed in terms of the overall value used for these goods and services up to a more specific price level and at a certain time period.
Some things that include aggregate demand are all consumer goods, capital goods used for the production process, import-export activities, and state government spending programs. Each of these variables will be considered the same as long as they are traded at the same market value.
This aggregate demand can also be calculated over a long period of time, which is often referred to as GDP or Gross Domestic demand. If this GDP will describe the total value and also the goods produced, then aggregate demand will represent the desire for goods and services.
Learn more about aggregate demand at brainly.com/question/29349235.
#SPJ4
Answer:
Net Income $12,400
Explanation:
Preparation of a corrected income statement.
GREENSTREAM INSURANCE Agency Income Statement For the Month Ended June 30
RevenuesService Revenue $42,000
[$40,000 +(20%* $10,000).]
Expenses:
Salaries and Wages Expense $17,300
($12,000 + $5,300)
Rent Expense 4,200
Depreciation Expense 3,300
($2,800 + $500)
Supplies Expense 2,800
($0 + $2,800)
Utilities Expense 1,200
($0 + $1,200)
Advertising Expense 800
Total expenses 29,600
Net Income $12,400
(42,000-29,600)
Therefore the net income for the corrected income statement will be $12,400
Answer:
ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000
Explanation:
1) WE ASSUME THAT SUZANNE'S BUSINESS INCOME IS SAME AS QUALIFIED BUSINESS INCOME (QBI) i.e.$150,000.
CALCULATION OF QBI DEDUCTION:-
1) 20% OF QBI (OR TAXABLE INCOME IF LOWER) = $30,000
{$150000*20% = $30,000)
2)50% OF WAGES ($90,000 * 50%) = $45,000
3) 25% OF WAGES + 2.5% OF ASSETS = $22,500
4) GREATER OF POINT 2 AND 3 = $45,000
ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000
Answer:
gxitxigxoyx8tstivubwobwojwojwhisgsihid
