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slega [8]
3 years ago
15

Which of the following Fed actions will increase bank lending? a) The Fed reverse repos $10 billion worth of Treasury bonds to n

on-bank financial firms. unchecked b) The Fed raises the reserve ratio from 10 percent to 11 percent. unchecked c) The Fed raises the discount rate from 5 percent to 6 percent. unchecked d) The Fed lowers the discount rate from 4 percent to 2 percent.
Business
2 answers:
DiKsa [7]3 years ago
7 0

Answer:

D. The Fed lowers the discount rate from 4 percent to 2 percent.

max2010maxim [7]3 years ago
5 0

Answer:

d) The Fed lowers the discount rate from 4 percent to 2 percent.

Explanation:

The federal discount rate is the interest rate charged by central bank to other banks.

The federal discount rate is used as an instrument to control the economy.

A decrease in the discount rate makes it cheaper for commercial banks to borrow money resulting into increased lending activity throughout the economy which is usually part of expansionary monetary policy.

Conversely, a hike in discount rate makes it more expensive for banks to borrow money leading to slowdown of economy which is part of contractionary monetary policy.

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Explanation:

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Brief Exercise 11-11 Calculate net cash flows from financing activities (LO11-5) Creative Sound Systems sold investments, land,
ankoles [38]

Answer:

$20 million

Explanation:

Data provided

Issue of common stock = $42 million

Purchase of treasury stock = $22 million

The computation of net cash flows from financing activities is shown below:-

Net cash flow from financing activities = Issue of common stock - Purchase of treasury stock

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6 0
3 years ago
Lucy Chang recently purchased a lovely ceramic bowl that featured a red dragon design. When she thought about her purchase, she
Usimov [2.4K]

Answer:

Nostalgic attachment.

Explanation:

As Lucy Chang has recently purchased a lovely ceramic bowl that featured a red dragon design. When she thought about her purchase, she found that she really had no justification for buying the bowl other than it reminded her of the bowls her mother used during evening meals when she was a young child in Hong Kong. Nostalgic attachment best explains the reason for Lucy's purchase of the dragon bowl. It is the attachment of an individual with some person or something tangible or intangible which is being aroused by seeing or feeling another object, product or person. That object, product or person serves as a link towards that past thing or object. For example, you had a best friend at your school who used to eat three ice-creams in a row, when you see another person doing the same thing, you might can start missing your old school friends or this incident can make you remind your old school friend, same is the case which has been happened in this case when Lucy purchased a lovely ceramic bowl featured red dragon design which she had no intention to buy at all but it gave her nostalgic attachment to the bowl which her mother used during evening meals when she was child.

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3 years ago
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