1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Flura [38]
3 years ago
5

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]3 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

You might be interested in
On January 1, 2017, Whitefeather Industries issued 300, $1,000 face value bonds. The bonds have a five-year life and pay interes
Ludmilka [50]

Answer:

$15000

Explanation:

All types of bonds have some common characteristics which include;

- A face/par value

- A coupon rate (interest rate).

- Either redeemable/irredeemable or convertible.

The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).

The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.

In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).

4 0
3 years ago
13. Which of the following is NOT used to describe the state of an economy?
Anni [7]

Answer:C.TINSTAAFL Rating

Explanation:

7 0
3 years ago
Compute the selling price if variable costs are ​$16 per unit. Determine the formula used to calculate the selling price.
dezoksy [38]

Answer: $40

Explanation:

Selling price can be calculated through the contribution margin equation;

Contribution margin = (Selling Price - Variable cost) / Selling Price

Contribution margin = Fixed costs/break-even point

= 660,000/1,100,000

= 60%

60% = (Selling Price - 16) / Selling Price

Selling price * 60% = Selling price - 16

16 = Selling price - (0.6 * selling price)

16 = Selling price * 40%

16/40% = Selling price

Selling price = $40

3 0
3 years ago
Noland bought a fancy new smartphone. it was a different brand of phone than his old phone, so he spent quite a few frustrating
kompoz [17]
Noland's problem was most likely due to PROACTIVE INTERFERENCE.
Proactive interference refers to the tendency of previously learned material to hinder subsequent learning. Proactive interference mostly occur when two information that are similar in format are involved.<span />
3 0
3 years ago
Why is it so important that managers, and people in general, should act ethically and temper their pursuit of self-interest by c
kari74 [83]

Explanation:

A leader has an essential role in an organization, through his conduct his subordinates are encouraged, motivated and can become more or less productive.

Therefore, ethical conduct is essential for managers and all people who make up an organization, as ethics and behaviors for the benefit of the community will make the work environment more positive and an organizational culture focused on development, good attitudes and collaboration, essential elements for the creation of value in an organization, for the good positioning in the internal and external environment and for the motivation and satisfaction of the employees.

5 0
3 years ago
Other questions:
  • 4 documents required by the department of trade and industry when registering a private company
    6·1 answer
  • Moss County Bank agrees to lend the Ivanhoe Company $365000 on January 1. Ivanhoe Company signs a $365000, 6%, 9-month note. The
    14·1 answer
  • Negative inflationary surprises lead to a(n):____________.
    5·1 answer
  • Suppose the market price of corn is​ $5 a bushel but the government sets a price of​ $7. As a​ result_______________--
    11·1 answer
  • Jill lives in a large metropolitan area. She is thinking about starting a senior citizen van service, where she will pick up sen
    9·1 answer
  • Hall Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department
    7·1 answer
  • Someone help me please?
    11·1 answer
  • Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year:________. A
    12·1 answer
  • What is the name of the document that companies use to report quarterly financial results?.
    5·1 answer
  • For a specific investment in equity securities, use of the equity method tends to produce ____ financial statement results than
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!