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nordsb [41]
3 years ago
14

The central bank requires Southern to hold 10% of deposits as reserves. Southern Bank's policy prohibits it from holding excess

reserves. If the central bank sells $25 million in bonds to Southern Bank which of the following will result?
A. the money supply in the economy decreases
B. Southern's net worth increases by $25 million
C. decrease in Southern's bond assets by $25 million
D. increase in Southern's loan assets of $25 million
Business
1 answer:
Mama L [17]3 years ago
6 0

The money supply in the economy decreases.

Answer: Option A

<u>Explanation:</u>

The central bank of the country has certain measures which can control the supply of the money in the economy. One of those measures is to buy and sell bonds in the market.

If the central bank sells bonds to the other banks, it will result in the decrease in the supply of the money in the market because the reserves in the bank also reduces. The bank purchases the bonds from the central bank and thus the reserves decrease.

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Bonds, compared to stocks, have which of the following characteristics?
Inessa05 [86]
The correct answer for the given question above would be option C. Bonds, compared to stocks, have the characteristic of having maturity dates. Maturity date<span> refers to the final payment </span>date<span> of a loan or other financial instrument in which the principal is due to be paid. Hope this answer helps.</span>
3 0
3 years ago
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Conversion costs are a.direct materials and factory overhead b.direct materials and indirect labor c.direct materials and direct
Digiron [165]

Answer:

d.factory overhead and direct labor

Explanation:

The conversion cost is a mix of the direct labor and the factory overhead or the manufacturing overhead

In mathematically,

Conversion cost = Direct labor + factory overhead

It is that cost which includes direct labor cost and manufacturing overhead cost only. It means that it excludes the direct material cost. Like - depreciation, factory rent, factory supplies, etc

4 0
4 years ago
This isn't a question!
RSB [31]

Answer:

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Explanation:

6 0
3 years ago
When inserting references in a document, _____ appear at the bottom of a page, while _____ appear at the end of the document.
Georgia [21]
2. Footnotes; endnotes
6 0
3 years ago
Future value.   A speculator has purchased land along the southern Oregon coast. He has taken a loan with the​ end-of-year payme
NemiM [27]

Answer: Not a wise investment as Cost exceeds Receipts.

Explanation:

As the amount is a constant payment, it is an annuity and as it is in future we are looking for the future value of an annuity:

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= $66,843.76

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The speculator would be paying more for the loan than they will sell the land for so this is not a wise investment.

3 0
3 years ago
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