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Burka [1]
3 years ago
6

An open market ________ leads to a(n) ________ of reserves and deposits in the banking system and hence to a(n) ________ of the

monetary base and the money supply. sale; expansion; expansion sale; expansion; contraction purchase; expansion; contraction purchase; expansion; expansion all of above could work.
Business
2 answers:
netineya [11]3 years ago
8 0

Answer:

purchase; expansion; expansion

Explanation:

An open market purchase leads to a(n) expansion of reserves and deposits in the banking system and hence to a(n) expansion of the monetary base and the money supply

Open market operations is how central bank purchases or sells government securities in order to expand or contract money in the banking system and influence interest rates.

MatroZZZ [7]3 years ago
7 0

Answer:

An open market <u>PURCHASE</u> leads to an <u>EXPANSION</u> of reserves and deposits in the banking system and hence to an <u>EXPANSION</u> of the monetary base and the money supply.

Explanation:

Open market operations are carried out by the Fed in order to expand or contract the money supply.

  1. An open market purchase means that the Fed will purchase US securities, increasing the money supply and decreasing interest rates (expansionary monetary policy).
  2. An open market sale means that the Fed will sell US securities, decreasing the money supply and increasing interest rates (contractionary monetary policy).

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Iteru [2.4K]

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3 years ago
According to Douglas McGregor, team members that require supervision, direction and threat of punishment for non-compliance are
antoniya [11.8K]

Answer:

Theory X employees

Explanation:

Douglas McGregor formulated or constructed Theory X as well as Theory Y, which suggest or states two aspects of human behaviour at the work.

In short, 2 different views of the employees or individuals, one which comprise of negative aspects or views is the Theory X, and other one is Theory Y, which comprise of the positive aspects and the views of the people and employees.

So, in this case, the team members who need the supervision, threat of punishment and direction for the non - compliance will be the Theory X employees as it contain the negative aspects.

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2 years ago
Health Wise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants He
NeX [460]

Answer:B) Copyright

Explanation:

A copyright is a legal protection that gives the original inventors of a product the exclusive right to manufacture, sell ,use a product for a limited time.

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A trademark is a logo of a brand , product or company.

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3 0
3 years ago
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal
lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

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