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KiRa [710]
3 years ago
6

When the Fed carries out contractionary monetary policy through selling bonds __________. Select the correct answer below: it re

duces the supply of loanable funds which raises the interest rate it reduces the supply of loanable funds which lowers the interest rate it increases the supply of loanable funds which lowers the interest rate it increases the supply of loanable funds which increases the interest rate
Business
1 answer:
Natalka [10]3 years ago
6 0

Answer: it reduces the supply of loanable funds which raises the interest rate

Explanation: Contractionary monetary policy is a monetary policy that reduces the supply of money and increases interest rates and is carried out by the Fed through selling of bonds. This reduces the supply of loanable funds and increases the interest rate. It is driven by increases in the various base interest rates with a goal to reduce inflation by limiting the amount of active money in circulation.

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Answer:

9.42%

Explanation:

According to the CAPM,

market required rate of return = risk free rate + (beta x market risk premium)

for stock A :

3.7% + (0.65 X 8.8%) = 9.42%

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for stock B :

3.7% + (1.22 X 8.8%) = 14.44%

for stock B, they both match

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3 years ago
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5 0
3 years ago
Rafael is applying to graduate schools for admission to the MBA program. If he goes part time, it will take four years and cost
s344n2d4d5 [400]

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4 0
3 years ago
A researcher wants to understand how customers' social interaction with online retailers impact their loyalty to online retailer
Mnenie [13.5K]

Answer:

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3 years ago
Jones, a farmer, found an odd-looking stone in his fields. he went to smith, the town jeweler, and asked him what he thought it
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Even though there was a miscommunication in the sale, Jones did not know that the stone was a diamond before selling it and Smith can easily say he did not know it was either. If Jones had taken the stone and received other opinions on it, he may have gotten more money but because he sold the stone, there is nothing he can take action on Smith for.

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