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kipiarov [429]
2 years ago
6

For more than 20 years, the Fed has used the federal funds rate as its monetary policy target. It has not targeted money supply

at the same time because the
A. Fed does not have the authority to control both targets
B. Fed cannot target both at the same time: it has to choose between targeting an interest rate and targeting the money supply
C. Fed can target both at the same time, but it has chosen to target the interest rate as it is more reliable as a target
Business
1 answer:
NNADVOKAT [17]2 years ago
5 0

Option B

For more than 20 years, the Fed has used the federal funds rate as its monetary policy target. It has not targeted money supply at the same time because the Fed cannot target both at the same time: it has to choose between targeting an interest rate and targeting the money supply

Explanation:

Every economic aspect important for the economy and not directly controlled by the Federal Reserve is subject to intermediate goals. For example, things like money supply or inflation are included. Although these goals form part of the monetary policy priorities of the banking system, the Fed's monetary policy actions only affect them indirectly. Intermediate priorities help guide decisions between the specific instruments of the Fed and its aims.

The Fed can not actually control an intermediate objective including the supply of money, and must, therefore, influence the intermediate objective by means of one of its policy instruments, the discount rate, in this case.

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What basically compares what an individual owes compared with how much they earn monthly?
STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

3 0
3 years ago
Sunland company installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $12,0
padilas [110]

Answer:

D. $42,000 should be debited to Land Improvements

Explanation:

The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.

Total Land improvements = $30,000 + $12,000

= $42,000

The right answer is D. $42,000 should be debited to Land Improvements.

4 0
3 years ago
It would be faster for a human resource manager to use a (an) (blank) to alert employees about a company picnic.
Galina-37 [17]
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3 0
2 years ago
Read 2 more answers
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses
satela [25.4K]

Answer:

statement of owner’s equity = $236,060

Explanation:

                 Thompson Computer Services

                   Statement of owner’s equity

             For the year ended, March 31, 20Y1

Balances, April 1, 20Y0                                     $180,000

Add: Additional capital                                         25,000

Add: Net Income (Note - 1)                                 <u>  47,630</u>

                                                                         $252,630

Less: Drawings                                                 <u>     16,570</u>

Balances, March 31, 20Y1                             $236,060

Note - 1

Net Income calculation = Revenues - Expenses

Net Income = Fees earned - (Office expense + Wages expense + Miscellaneous expense) = $73,450 - (1,240 + 23,550 + 1,030)

Net Income = $73,450 - $25,820

Net Income = $47,630

4 0
3 years ago
A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one o
Veronika [31]

Answer:

1a. Payback period = <u>Initial outlay</u>

                                  Annual cost saving

                                = <u>$484,500</u>

                                    $85,000

                                 = 5.7 years

b. The equipment should not be purchased because it has a longer payback period than the company's required payback period.

2a.                                      $

Annual cost saving         85,000

Less: Depreciation          <u>40,375</u>

Annual profit                    <u>44,625</u>

Simple rate of return = <u>Annual profit</u>  x 100

                                      Initial outlay

                                      <u>$44,625</u>    x 100

                                      $484,500

                                    = 9.21%

Depreciation = <u>Cost - Residual value</u>

                         estimated useful life

                      = <u>$484,500 - 0</u>

                               12 years

                      = $40,375 per annum

2b, The equipment should not be purchased because the simple rate of return is lower than the company's required rate of return.

Explanation:

Payback period is the ratio of initial outlay to annual cost saving. It is the period in which the initial outlay is recouped.

Simple rate of return is the ratio of annual profit to initial outlay. It measures the rate of return on capital invested.

5 0
2 years ago
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