1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ahat [919]
3 years ago
14

institution ID Institution II 1. finances budget deficits. 1. loans funds to the banking system. 2. Sells newly issued governmen

t bonds. 2. It creates money out of thin air. 3. It issue money. 3. It control the money supply. 4. When it government bonds, the money supply
Business
1 answer:
mars1129 [50]3 years ago
7 0

Answer: The answer is central bank

Explanation:

Budget deficit : This is when government total proposed expenditure for a period is more than the total estimated revenue. When this happens, government get the money to finance the deficit in the budget from the central bank or ask the central bank to print more currency or get aid and grant from foreign aid donors to finance the deficit.

Loan fund to the banking system: This is a function of central bank when they act as lenders of last resort to the commercial bank. If people begins to withdraw their money from commercial banks, the banks may be placed in such a position that they will not have enough cash to pay their customers. They will run to the central bank to borrow money or to rediscount bills and the central bank must not refuse to come to the aid of commercial banks in order to prevent banking crisis which may shake a country's economy.

Sells newly issued government bond : This is when central bank wants to reduce the volume of money in circulation, the central bank sells bond or securities in the open market .people buy with cheque drawn on their deposits in the commercial banks. The central bank then presents the cheque to the commercial bank and draw on their cash reserves by this the cash reserve of commercial banks is reduced and reduce the supply of money in the economy.

Create money out of thin air: This is the central bank function of issuing notes, it is the legal authority to issue notes. When new notes are to be put into circulation, this is done by the central bank .but the new notes are set into circulation through the commercial banks.

Control the money supply : This is the function of central bank to regulate the volume of money in circulation or to mop up excess liquidity in the economy by selling treasury bill through the open market to the members of the public .It collect money from the commercial banks this will reduce the cash reserves of commercial banks and reduce their loan given capacity.

Government bonds, the money supply : The central bank is the legal authority to sell government bonds in order to mop up the excess liquidity in the economy. When their is too much money in circulation, the central bank make use of monetary policy instruments such as the open market operation to reduce the supply of money in circulation.

You might be interested in
Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of payin
otez555 [7]

Answer:

a. adds $10,000 in bank reserves.

Explanation:

Given that

Reserve requirement is 20%

Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves

Therefore as per the given situation, the option a is correct

And, the same is to be considered

Thus, all the other options are incorrect

4 0
3 years ago
Nan has extensive experience in ergonomic product design. Though she is not a manager, she is often called on by product manager
garri49 [273]

Answer: Expert power

Explanation: Expert power is the personal power based on expert knowledge whereby the associates or another member of the company clearly have the awareness that the individual's skill and extensive experience will help in solving a particular problem or in decision-making. The person with such power is not necessarily a manager, it could be an employee who has the specialist abilities and proficiency that the others do not have.

However, this type of power gives the person holding it a high reputation and he or she gains some level of trust and respect from the managers, coworkers and the company as a whole.

7 0
3 years ago
Suppose a company earns a profit this year and has a dividend payout ratio of one half. What does this mean?
algol [13]

Answer:

C

Explanation:

The dividend payout ratio is the ratio of dividends paid to shareholders in proportion to net income

Payout ratio = dividends / net income

If dividend payout ratio of one half, it means that only half of net income is paid as dividends

7 0
3 years ago
The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year en
adoni [48]

Answer:

Abbot makes a savings of $74,000 in the current year.

Review full presentation of answers in the attaches

Explanation:

4 0
3 years ago
Read 2 more answers
Primary market explain how the treasury uses the primary market to obtain adequate funding
Contact [7]
<span>Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.</span>
6 0
3 years ago
Other questions:
  • Surgery U.S. insurers’ costs for knee replacement surgery range from $17,627 to $25,462. Estimate the population variance (stand
    9·1 answer
  • Erik is an investor with $5,000 available for investment. He has the following three investment possibilities from which to choo
    6·1 answer
  • What is required to have a legally valid contract?
    7·2 answers
  • Actual payroll posts simultaneously as a commitment, obligation, expense, and disbursement (COED) by means of a Journal Voucher
    13·1 answer
  • A loan is borrowed money that must be returned. True or False?
    5·1 answer
  • [The following information applies to questions 14-16.]
    12·1 answer
  • The Conner Company uses a two-step process for making wooden boards with holes in them. Step 1 is drilling and Step 2 is sanding
    15·1 answer
  • An institutional review board (IRB) helps to ensure the safety of subjects of review. Who typically sits on such a board?
    5·1 answer
  • The planning cycle is viewed as a linear process with a sequence of steps; however, it can also be considered cyclical so that a
    8·1 answer
  • What is responsibility accounting? why should noncontrollable costs be excluded from perfor-mance reports prepared in accordance
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!