Answer: Product-mix
Explanation:
From the given case/scenario, we can state that this situation describes the problem of product-mix. Product mix that is also known as or referred to as product assortment, tends to refer to total number of product/commodity lines that an organization offers to an individual or to its customers.There are four dimensions to an organization's product mix, these are length, width, consistency and depth.
The correct option is B.
In case of non repayment of loan, the lender can sell the collateral and used the proceeds to cover his losses. A collateral is always in form of properties which are substantial in value, it is often requested that borrowers provide collateral in order to reassure lenders that they will pay up.
Answer:
The total purchase price of the plant allocated to the land, building, and machinery is $140,840, $509,707 and $355,453 respectively
Explanation:
The computation is shown below:
For land
= Total purchase price × appraisal value of land ÷ total appraisal value
= $1,006,000 × $126,000 ÷ $900,000
= $140,840
For building
= Total purchase price × appraisal value of building ÷ total appraisal value
= $1,006,000 × $456,000 ÷ $900,000
= $509,707
For machinery
= Total purchase price × appraisal value of land ÷ total appraisal value
= $1,006,000 × $318,000 ÷ $900,000
= $355,453
where, the total purchase price is
= $1,000,000 + $6,000
= $1,006,000
Answer:
These statements are true:
A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:
For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).
C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.
Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.
For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.
D) The Federal Reserve sets the Federal funds rate.
Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.
