The Federal Reserve does not pay interest on reserves held on deposit. The European System of Central Banks does pay interest on reserves held on deposit.
<h3>Federal Reserve Board</h3>
- In the past, reserve banks were unable to offer interest on deposits. The Emergency Economic Stabilization Act of 2008 brought about a shift in that.
- The Federal Reserve Board had to increase the size of its balance sheet by purchasing Treasuries and mortgage-backed securities in order to increase the amount of liquidity available to the banking sector.
<h3> European System of Central Banks</h3>
- The major objective is to preserve price stability or the euro's worth. Price stability is the most significant contribution monetary policy can make in this area because it is crucial for economic growth and job creation, two goals of the European Union.
- The ECB has four decision-making bodies with the authority to carry out the institution's goals.
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High <u>debt to owner's equity ratio. </u>
This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.
40-55 years is the expected number of years that known natural gas reserves are expected to last given that the current rates of use and extraction<span> do not change. The world has 40-55 years left to find an alternative to oil before it runs out.</span>
<span> </span>
Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
Answer:
inventory period
Explanation:
According to my research on different financial terminology, I can say that based on the information provided within the question this time lapse is called the inventory period. Like mentioned in the question this is the number of days inventory is held, calculated by subtracting the sale date from the day of purchase.
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