Answer:
Target funds rate = 7.5%
Explanation:
The target Federal funds rate is calculated as:
Target funds rate = Real equilibrium Federal funds rate + current inflation + 0.5(inflation gap) + 0.5(output gap).
(Inflation gap = Current inflation rate - Target inflation rate)
So, Target funds rate = 2 + 1 + 0.5(1 - 2) +0.5(10)
= 3 + 0.5(-1) + 5
= 3 - 0.5 + 5
= 7.5
Therefore, Target funds rate = 7.5%
Answer:
B
Explanation:
If you're going to solve it ur going to need to know how it's going to effectively help don't just do it first think.
Answer:
Godfrey Corporation
GOLDFREY CORPORATION
Balance Sheet (Partial)
December 31, 2017
Noncurrent assets:
Investments:
Investment In Stock, at fair value $64,100
Stockholders' Equity:
Common stock
Retained earnings
Less :
Unrealized loss $4,900
Explanation:
a) Data and Calculations:
Long-term investment available for sale:
Cost = $69,000
Fair value 64,100
Unrealized loss $4,900
b) The correct entry would have been to reduce the net income by the unrealized loss. However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.
Answer:
4. Your house - MONEY IS THE MOST LIQUID ASSET THAT CAN EXIST
2. The funds in a savings account - MOST SAVINGS ACCOUNTS ALLOW THEIR CLIENTS A CERTAIN NUMBER OF WITHDRAWALS OR ELECTRONIC TRANSFERS PER MONTH, SO MONEY AT A SAVINGS ACCOUNT IS ALSO VERY LIQUID.
1. A bond issued by a publicly traded company - THE COMPLETE PROCESS OF SELLING A BOND MAY TAKE FROM ONE FULL DAY TO A FEW DAYS, SINCE FIRST YOUR TRADER MUST SELL THE BOND AND THEN THEY MUST TRANSFER THE MONEY TO YOUR ACCOUNT. STILL BONDS ARE LIQUID ASSETS.
4. Your house - SELLING A HOUSE IS A LONG PROCESS THAT CAN TAKE A FEW DAYS (AT BEST) TO SEVERAL MONTHS, SO A HOUSE IS NOT A VERY LIQUID ASSET.