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mart [117]
3 years ago
15

Explain how each of the following changes the money supply. a. the Fed buys bonds b. the Fed auctions credit c. the Fed raises t

he discount rate d. the Fed raises the reserve requirement
Business
1 answer:
SVEN [57.7K]3 years ago
3 0

Answer:

Following are the changes

Explanation:

When fed buy bonds it increases the overall money supply in the market because they buy bonds in exchange for money. If firm auction credit it also leads to an increase in the money supply as long as more funds are available. When fed raises the discount rate it decreases the money supply because interest on borrowing will increase. Increase in the reserve requirement decreases the money supply because no banks have to hold more money in the reserves.

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The corporation is required to record entry for cash dividend declaration.  Only the common stock outstanding or the 14,800 shares are entitled to receive dividends.  Thus, the journal entry to record the dividend declaration is as follows:
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2 years ago
Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-
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Answer:

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entry to adjust against COGS

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\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

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