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ziro4ka [17]
2 years ago
8

What does monatary policy do

Business
2 answers:
mezya [45]2 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]2 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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Sandra Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual p
Andre45 [30]

Answer: a. $73,810.88

b. $10,185.18

Explanation:

a. The payments of $11,000 are constant so this can be considered an Annuity.

The cost of the Computer is it's present value which is,

Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods

= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)

= $73,810.88

b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.

The formula is the same but for the figures ,

Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods

73,810.88 = Annuity * 7.24689

Annuity = 73,810.88/7.24689

= $10,185.18

7 0
3 years ago
What is aacceleration?<br>Who is the most active MOD here? ​
swat32

Answer:

Acceleration is the rate of change of velocity. Usually, acceleration means the speed is changing, but not always. When an object moves in a circular path at a constant speed, it is still accelerating, because the direction of its velocity is changing.

Explanation:

6 0
3 years ago
Read 2 more answers
Which is the most common method for calculating credit card balances? A. Previous balance method, B. Adjusted balance method, C.
fenix001 [56]

The correct answer is C. Average daily balance method.

In average daily we consider balance interest or owed at the end of the day.

To calculate debt credit card we take the percentage of the total amount of current balance which will be termed as the interest then add one percent of the principal.

T o calculate for daily credit card balance we total the balance in the billing cycle everyday then you will divide your total with the number of days which in the cycle.

8 0
3 years ago
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Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
Irina-Kira [14]

Answer:

present value = $8396.19

Explanation:

given data

cash flow = $10,000

rate r = 6 %

time period t = 3 years

to find out

present value of the note  

 

solution

we get here present value that is expressed  as

present value =   \frac{cash\ flow}{(1+r)^t}     ....................1

put here value and we will get present value

present value = \frac{10000}{(1+0.06)^3}  

solve it we get

present value = $8396.19

7 0
3 years ago
Match the definition with the term.
RSB [31]

Answer:

a. It is a collection of all accounts with their activity and balances that exist in a business.  - A general ledger

The General Ledger is the central record in an accounting system and contains a record of all financial transactions in the company.

b. It is a book of original entry that includes a chronological record of all transactions that Have occurred within a business during a period occurred. - A Journal

When a transaction takes place in a business, it is recorded first in a Journal. As such, a journal contains a chronological record of all transactions that have occurred within a business during a period occurred.

c. It is a list of each account and its balance at any given time and is used to verify that debits = credits . - Trial Balance

The Trial Balance helps a business balance its debits and credits by listing them so then equating them to verify that indeed the debits match the credits.

d. It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account . - A chart of accounts

3 0
3 years ago
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