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4 years ago

_______ decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.

Business

1 answer:

Ahat [919]4 years ago

6 0

Answer:

Open market operations -sales

Explanation:

Open market operations are one of the monetary policy tools that the Fed uses to regulate the money supply in the economy. They can be used to increase or decrease the supply of money in the country. In other words, they have both contraction and expansion effects on the economy.

Opens market operation involves purchasing and selling of bonds and securities in the market place. When the Fed sells bonds and securities from the banks, it decreases the money available for loaning out to firms and households. Banks use customers' deposits to purchase the government bonds leaving little left to loan out. Limited credit in the economy decreases the money available for business expansion and consumer consumption.

The government bonds end up in hands in public through the banks.

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China Importers would like to spend $215,000 to expand its warehouse. However, the company has a loan outstanding that must be r

Nimfa-mama [501]

Answer:

Yes;a.because the money will be recovered in 2.10 years

Explanation:

Assume the company takes uses the loan to expand, how much time will it take to pay back the loan?

This can be expressed as;

T=F+S+T

where;

T=total cash flow needed to repay the loan

F=cash flow for the first year

S=cash flow for the second year

T=cash flow for needed in the third year to pay the loan

In our case;

T=$215,000

F=$60,000

S=$140,000

T=unknown

replacing;

215,000=60,000+140,000+T

T+200,000=215,000

T=215,000-200,000=15,000

The cash flow needed in the third year to pay the loan=$15,000

Determine how long it will take to raise $15,000 in the third year;

total cash flow in the third year=$150,000

1 year=$150,000

To raise $15,000=15,000/150,000=0.1 years

Total number of years=1+1+0.1=2.1 years

It will take 2.1 years to pay back the loan.

The firm should expand since the money will be recovered in 2.1 years even before the repayment period.

4 0

3 years ago

At higher prices, the price elasticity of demand is likely to be ________, whereas it is likely to be ________ at lower prices.

Black_prince [1.1K]

Answer:

2. elastic; inelastic

Explanation:

The price elasticity of demand, the amount consumers demand from a particular price are different for each good or service, and when the price changes, the response shown as the change in the quantity requested is different for each good (even at a different price level for one good).

In the face of price changes, the severity (or degree of sensitivity) of the reaction of consumers in the form of changing the amount they buy against this change is measured by the price elasticity of the demand, which is also called demand elasticity. This flexibility is expressed by a coefficient.

The price elasticity coefficient of demand is equal to the ratio of the percentage change in the quantity demanded to the percentage change in price in the face of a small change in price.

The Price elasticity will be elastic when it equals or more than 1, if not it will be inelastic with the amount of less than 1.

6 0

3 years ago

Grady received $8,200 of Social Security benefits this year. Grady also reported salary and interest income this year.What amoun

Alexus [3.1K]

Solution:

a. [$0]

Grady eliminates a limit of $8,200, because the value of his adjusted AGI plus 50 percent of his social security compensation ($12,100 + $250 + $4,100= $16,450), falls below the required level, including social security benefits, of ($25,000 or less for single taxpayers).

b. [$850]

Grady is single with his adjusted AGI plus 50% of his social security income is 25,000 dollars to up to 34,000 dollars (600 dollars with 50% of Social Security benefits). Its social security payments are less than (a) 50 percent ($8,200 or 50 percent= $4,100) or (b) 50 percent ($22,600 adjusted AGI+ $4,100 + − $25,000)= $850), respectively. His social security benefits are therefore taxable at $850.

c. [$6,970]

Grady provides 85% or 6,970 dollars in compensation ($8,200 to 85%), as the adjusted AGI is just over the limit of social security payments ($44,000 for a married joint).

d. [$6,970]

Married reports for its revised AGI plus 50 percent of its social security benefits ($44,000 + $700 + $4,100= $48,800) are over 44,000 dollars. Its taxable benefit in the social security program is less than (a) 85% of the benefits provided for in the social security system (85%= $8970), or (b) 85% of [$44700 adjusted AGI+ $4100 (50% of benefits provided for in the social security system) − $44000] − $4900), plus less than (1) $6000 (2), or (4,100) 50%. This renders it cheaper for less than $6,970 ($4,080 plus $4,100). His net profits are now $6,970.

e. [$6,970]

Grady had been married separately, so thus the taxable social security gain of Grady's data is less than (a) 85% (85%= $8,200); so (b) 85% (85%) of the AGI adjusted by the employer plus 50% (85%) of the social securityprofit(22,000 $+ 600 + 4,100 $(50%)= 22,695). His net profits are now $6,970.

7 0

4 years ago

Taylor Systems has just issued preferred stock. The stock has a 10% annual dividend and a $ 110 par value and was sold at $119

shutvik [7]

Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 12 % annual dividend and a $100 par value and was sold at $97.50 per shar

4 0

3 years ago

On June 27, 2021, Cara Van Travel distributed to its common shareholders 510,000 outstanding common shares of its investment in

Phoenix [80]

Answer:

The correct answer is $255,000.

Explanation:

According to the scenario, the given data are as follows:

Total outstanding shares = 510,000

Shares value before = $3.10

Shares value after deal = $3.60

So, we can calculate the amount of gain on disposal by using following formula:

Gain amount on disposal = Total number of shares × Difference in share value

By putting the value, we get

= 510,000 × ( $3.60 - $3.10)

= 510,000 × $0.50

= $255,000

6 0

3 years ago