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slamgirl [31]
3 years ago
14

What are the primary functions of a central bank?

Business
1 answer:
Vesnalui [34]3 years ago
4 0

Answer:

The correct answer is:

  • Conduct monetary policy;
  • Ensure that the financial system is stable;
  • Provide banking services to commercial banks, depository institutions, and the federal government.

Explanation:

A central bank is the apex monetary authority in a country. It plays several crucial roles in the smooth working of the economy.

  1. A central bank issues currency on behalf of the government.
  2. It formulates monetary policy on behalf of the government.
  3. It acts as a banker for the government.
  4. It acts as a banker for commercial banks.
  5. It supervises all financial institutions.

The role of providing services to businesses and consumers is played by commercial banks. Fiscal policy is formulated by the government. The responsibility of ensuring the growth of the economy also falls with the government.

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The company paid $35,000 cash in dividends to the owner, jen rogers. the entry needed to close the dividends account is:
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The entry needed to close the dividend account is "Debit: Retained earnings $35,000 and credit: dividend expense $35,000" based on the journal transaction. The dividend is a portion of a company's earnings which be shared by the company to the investor as the return for their investment. This entry will decrease the retained earning balance.
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The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the p
tiny-mole [99]

Answer:

Effect on income= -$22,000 decrease

Explanation:

Giving the following information:

Contribution margin $30,000

Fixed expenses ($40,000)

Net operating loss ($10,000)

<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>

<u></u>

Effect on income= avoidable fixed costs - contribution margin

Effect on income= 8,000 - 30,000

Effect on income= -$22,000 decrease

5 0
3 years ago
Suppose there are 100 workers in the economy in which all workers must choose to work a risky or a safe job. Worker 1's reservat
Amiraneli [1.4K]

Answer:

<em>The solution is explained in the explanation section below</em>

Explanation:

Solution:

(a) <em>In the economy there exist 100 workers. the wage of reservation to take risky job for worker 1 is $1 and $2 for worker -2. only 10 jobs is seen as risky.</em>

<em>The curve of supply is shown as upward which starts from 1, because the price of reservation for the first worker is 1 and 2 is for the second worker and it keeps going on like that.</em>

<em>The demand curve is seen as elastic in a perfect form, due to the fact that there are only 10 risky jobs.</em>

<em>The 10th worker price is $10, because is wage differential is $10</em>

<em>(b) The worker's altitude towards taking risky jobs has changed, because of the advertisement. the wage reservation is -10$ for the first worker and -$9 for the second worker.</em>

<em>Th jobs seen as risky is available are only 10</em>

<em>However, as a result of the campaign advertisement, the curve of supply moves down and the market equilibrium gets is gotten when the wage differential is -$1. most people on the daily basis dislike risk, but the market determines those risky jobs that will pay less than the safe ones. </em>

3 0
3 years ago
On January 1, 2020, Mirada, Inc. issued five year bonds with a face value of $100,000 and an annual stated rate of 8%. Interest
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Answer:

Book Value of bond = $106,931

Explanation:

Given:

Face value of bond = $100,000

Issue price = $108,425

Computation:

Interest payment = $100,000 x 8%

Interest payment = $8,000

Interest expense = $108,425 x 6%

Interest expense = $6,505.50

Amortization of premium = $8,000 - $6,505.50

Amortization of premium = $1,494.50

Book Value of bond = $108,425 - $1,494.50

Book Value of bond = $106,931

3 0
3 years ago
On September 30 of last year, Rex received some investment land from Holly as a gift. Holly’s adjusted basis was $50,000 and the
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Answer:

A) On the 32,000 sale it will be considered a 18,000 gift to the buyer.

Because is above the 15,000 gift per person per year, it will trigger the gift tax.

B) 70,000 will generate a long-term capital gain of 20,000

C) gift of 5,000 it will not trigger the gift tax.

Explanation:

When the sale is below market value, it is treated as a gift to the buyer.

The capital gain or losses are considered using the adjusted basis.

Because Holly acquiredthe land for more than a year, it will be cosnidered a long-term capital gain if any.

4 0
3 years ago
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