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3 years ago

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.

A central bank issues currency on behalf of the government.
It formulates monetary policy on behalf of the government.
It acts as a banker for the government.
It acts as a banker for commercial banks.
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.

You might be interested in

Which country, of those listed below, has the lowest percentage of women in senior management?

OLEGan [10]

As there is no countries listed but the percentage of women in senior management of some countries are as follows:
<span>Women in senior management in China = 50%
Women in Senior management in Poland = 48%
In Germany = 30%
and in United States = 20%
Now you can see that which country has lowest percentage of women in senior management and that is United States.</span>

8 0

3 years ago

During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard mater

omeli [17]

Answer and Explanation:

The computation is shown below:

Total material cost variance

= (Standard quantity × standard price) - (actual quantity × actual price)

= (4,000 tiles × 2 pounds of material × $4) - (8,800 pounds × $35,640 ÷ 8,800 pounds)

= (8,000 pounds × $4) - ($8,800 pounds × $4.05)

= $3,640 unfavorable

For material price variance

= Actual Quantity × (Standard Price - Actual Price)

= 8,800 × ($4 - $4.05)

= $440 unfavorable

For material quantity variance

= Standard Price × (Standard Quantity - Actual Quantity)

= $4 × (8,000 pounds - 8,800 pounds)

= $3,200 unfavorable

The favorable variance is that in which the standard cost is more than the actual cost and the inverse goes to unfavorable variance

4 0

3 years ago

Net present value LO P3 Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the follow

Marysya12 [62]

Answer:

$20,996.49

Yes

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator.

Cash flow in year 0 = $-250,000

Cash flow in year 1 = $83,000

Cash flow in year 2 = $43,000

Cash flow in year 3 = $76,000

Cash flow in year 4 = $127,000

Cash flow in year 5 = $49,000

I = 12%

NPV = $20,996.49

The company should accept the project because the NPV is postive.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

8 0

3 years ago

Read 2 more answers

A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m

Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0

3 years ago

Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short

castortr0y [4]

Answer: Transaction exposure

Explanation:

Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.

It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.

6 0

3 years ago