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ziro4ka [17]
3 years ago
8

What does monatary policy do

Business
2 answers:
mezya [45]3 years ago
6 0

Answer:

<em>Monetary policy</em> consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Elena-2011 [213]3 years ago
3 0

The monetary policy regulates cash supply, controls inflation, adjusts interest rates to regulate the market, and money costs  

<u>Explanation: </u>

Monetary policies raise flexibility in order to produce economic development. This reduces money to prevent inflation.

Three objectives of monetary policy:

  • Inflation is the most important thing.  
  • The second aim is to reduce unemployment, but only after inflation has been controlled.  
  • Thirdly, low long-term interests rates should be encouraged.

The four tools to fulfil monetary policy goals:  

Risk-Free rate: Federal Reserve discount funding complements monetary policy to the federal fund's goal, which provides commercial banks with backup liquidity.

Capital requirements: The amounts of funds that lenders have to hold in cash or on loan in their containers at reserve banks.

Market Activities: U.S. government bond purchase and selling has been a trustworthy device.

Reserve interest: Excess funds kept at Reserve Banks were charged for interest on deposits.

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Tuna Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by
STatiana [176]

Answer:

$985,000

Explanation:

Given that,

Pretax book income = $1,000,000

Increase in net reserve for warranties = $25,000

Book depreciation = $100,000

Dividend received deduction = $15,000

Book equivalent of taxable income:

= Pretax book income - Dividend received deduction

= $1,000,000 - $15,000

= $985,000

Therefore, the Book equivalent of taxable income is $985,000.

7 0
3 years ago
Which economic tool would most likely be used as part of an expansionary
raketka [301]

Answer:

C. Reducing the discount rate

Explanation:

Expansionary monetary policies are macroeconomic undertakings by the Federal Reserve that aim at stimulating economic growth in the economy. Expansionary policies result in an increased flow of money in the country, which increases the aggregate demand.

The discount rate is the rate at which the Federal Reserve (the Fed ) charges commercial banks for advancing them credit. Reducing the discount rate makes loans from the Fed more affordable. Commercial banks will opt to borrow from the Fed at lower rates and lend out to households and firms at a higher interest rate, thereby making profits. Reducing the discount rate increases the money available for banks to lend out. Households and businesses will borrow this money for development and investments, which ignites economic growth.

5 0
3 years ago
How many days does a server have to get trained after starting their employment?.
devlian [24]

The number if days a server have to get trained after starting their employment is 60 days.

<h3>Deadline for Requisite Alcohol Server Training:</h3>

According to AB 1221, an alcohol server is any employee of an establishment with an ABC on-premises licence who is in charge of verifying identifications, receiving client orders, and serving or transporting alcoholic beverages.

Some key points of alcohol server training are-

  • The Department of Alcoholic Drink Control's (DABC) Responsible Beverages Service (RBS) certification is required for alcohol servers & their managers (ABC).
  • To become certified, servers and their supervisors must pass an RBS exam offered online by ABC by August 31.
  • If they have just been hired, they have 60 days from of the start of their work to pass the test and become certified.
  • ABC created the RBS programme by hosting meetings with stakeholders around the state to get their views on the best way to comply with the new certification mandate.
  • The RBS training webpage was developed by ABC based on feedback.
  • The site gives users access to a certification program and training service for alcoholic beverages in order to meet AB 1221's criteria.

To know more about seller-servers, here

brainly.com/question/6818794

#SPJ4

6 0
1 year ago
Suppose you observe a one year zero coupon bond with par value $1000 is selling for $900, and a two year zero coupon bond with p
Ksenya-84 [330]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

8 0
3 years ago
You would like to be holding a protective put position on the stock of XYZ Co. to lock in a guaranteed minimum value of $105 at
LUCKY_DIMON [66]

Answer:

$1.5

Explanation:

If the stock price increases by 8% then the stock value would be $113 given by

($105*(1+0.08) = $113.4

with "0" Value of put payoff.

if, however, the stock price declines by 8% then the stock value would be $97 given by

$105 × (1 - 0.08) = $96.6

resulting to a put payoff of $8 that is ($105 - $97).

Thus, here in this case to guarantee a value of $105, two puts would have to be purchased.

Hence the present value of stock at $105 would be

PVpo = P/1.05  (at T-bill rate of 5% (1 + 0.05)

PVpo = 113/1.05

PVpo = 108

The general formula to evaluate the cost of purchase, if the option were traded is,

S+2P = 10

8

where S = stock price, $105

105+2P = 10

8

2P = 3

P = $1.50

6 0
3 years ago
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