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2 years ago

Suppose that banks decide to hold fewer excess reserves relative to deposits. Other things the same, this action will cause the

Business

1 answer:

marysya [2.9K]2 years ago

4 0

Answer:

c. money supply to rise. To reduce the impact of this the Fed could sell Treasury bonds.

Explanation:

Since in the question it is given that the bank has decided to hold fewer reserves that contain excess reserves as compared to deposits so for this they have to borrowed the amount or the saving amount should be invested

This results in declining in interest rate which causes the money supply risen also the demand and the investment for the nation has risen that develop the inflation but for declining the inflation the FED has to sell the bonds so that it comes at equilibrium point again

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Chahana acquired and placed in service $1,185,000 of equipment on August 1, 2019 for use in her sole proprietorship. The equipme

algol [13]

Answer:

D) $1,053,000

Explanation:

Calculation to determine what Chahana's total deductions for 2019 (including Sec. 179 and depreciation) are

Sec 179 immediate expensing $1,020,000

MACRS depreciation:

Add Basis for depreciation $33,000

[($1,185,000 - $1,020,000 Sec. 179) × .20]

Total depreciation $1,053,000

($1,020,000+$33,000)

Therefore Chahana's total deductions for 2019 (including Sec. 179 and depreciation) are:$1,053,000

7 0

2 years ago

When the fed sells bonds to financial institutions, new money moves directly:?

Oksana_A [137]

When the fed sells bonds to financial institutions, new money moves directly "out of the loanable funds market".

The Federal Reserve System,sometimes alluded to as the Federal Reserve or essentially "the Fed," is the national or central bank of the United States. It was made by the Congress to give the country a more secure, more adaptable, and more steady fiscal and budgetary framework. The Federal Reserve was made on December 23, 1913, when President Woodrow Wilson marked the Federal Reserve Act into law. Today, the Federal Reserve's obligations fall into four general zones.

5 0

3 years ago

The Missing Link Chain-Link Fence Company is trying to determine how many chain-link fabricating machines to buy for its factory

OleMash [197]

Answer:

Explanation:

What is given:

The price of a new fabricating machine - 60

The price of a one-year-old machine - 51

The real interest rate is 10% per year

Marginal product of fabricating machines 165-2K (K - desired number machines)

If calculate the depreciation, (60-51)/51 = 15%

a) Find user cost of capital

User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine

= 60*(0.10+0.15) = 15 units

b) Determine the number of machines that will allow Missing Link to maximize its profit

165-2K=15

2K = 150

K = 75 machines

Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?

165-2K = 15/(1-0.4)

165-2K=14/0.6

165-2K=25

2K=140

K=70 macines

4 0

3 years ago

name some differences between the requirements and responsibilities between volunteer,intern, and paid jobs

DIA [1.3K]

Answer:

The major difference between job shadowing and an internship is that you perform more duties as an intern than as a job shadow participant. Interns are hired for temporary positions, and they can be paid or unpaid. When you have. a job you are bing paid and normally have more responsibilities.

8 0

2 years ago

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would

IgorLugansk [536]

Answer:

With mitigation: NPV =$36,670,000, IRR= 15,24%

Without mitigation: NPV= $ 42,000,000, IRR= 19,86%

Explanation:

To calculate the Net Present Value (NPV) we have to sum the present value of a project´s cash flows (positive and negative cashflows). To do so, we need: the number of periods of the project, the discount rate, cost of captal or WACC, and the future values of the cash flows. Then we apply the formula attached.

To calculate the Internal Rate of Return (IRR) we have to find the discount rate, cost of capital or WACC that makes the NPV equal to cero. That means we have to find a rate in which the investor do not create or destroy value, only recovers the investment. I attached the formula.

But, this is better if we use excel:

First we copy the cash flows of the two projects. To find the NPV we use the financial formula "NPV" in this way:

"=NPV(rate;cash flows from year 1 to year 5)+ cash flow of year 0"

To find the IRR we use the financial formula "IRR" in this way:

"=IRR(cash flows from year 0 to year 5)"

I attached the excel figure.

6 0

3 years ago