All categories

3 years ago

The objectives of U.S. monetary policy are to achieve ______.

Business

1 answer:

SSSSS [86.1K]3 years ago

4 0

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth. If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

You might be interested in

What is the last step of planing?

Andrej [43]

Answer:

The last step in planning process is the implementation part. The planning should be put into action so that business objectives may be achieved. The implementation will require establishment of policies, procedures, standards and budgets.

7 0

3 years ago

On october 31, 2009, sky co. borrowed $16 million cash and issued a 7-month, noninterest-bearing note. the loan was made by star

mash [69]

Answer: Sky's effective interest rate on this loan is 8.39%.

In this question, we assume that interest is compounded annually.

Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.

Face value of the note $16 million

Discount Rate p.a 8%

Tenure of the note 7 months

$Discount on Note = Face Value * Discount Rate * \frac{Tenure in months}{Months in a year}$

$Discount on Note = 16 * 0.08 * \frac{7}{12}$

$Discount on Note = 0.746666667million$

[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]

$Loan Amount received by Sky = 16 - 0.746666667$

$Loan Amount received by Sky = 15.25333333 million$

So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:

$Seven month Interest Rate = \frac{Interest}{Loan amount}$

$Seven month Interest Rate = \frac{0.746666667}{15.25333333}$

$Seven month Interest Rate = 0.048951049$

From this we can work out the effective interest rate for Sky as follows:

$Sky's Effective Interest Rate = Seven month interest rate * \frac{12}{7}$

$Sky's Effective Interest Rate = 0.048951049* \frac{12}{7}$

$Sky's Effective Interest Rate = 0.083916084$

4 0

3 years ago

Match the terms below with the following definition:

GalinKa [24]

Answer:

1. B

2. A

3. D

4. C

Explanation:

1. Activity variance

B) the difference between a revenue or cost item in the flexible budget and the same item in the planning budget.

The activity variance is as a result of difference between the actual level of activity in the flexible budget to the assumed level of activity in the planning budget.

2. Planning budget

A) a budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Planning budget is a process of evaluating earnings and expenses and project their monetary intakes and outtakes for the future made by an individual or company.

3. Flexible Budget

D) a report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Flexible budget adjusts with changes in volume and activity

4. Spending variance

C) the difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity

This is unfavorable if the actual cost is greater than what the cost should have been and favorable if the actual cost is less than what the cost should have been.

6 0

3 years ago

How do price changes drive markets toward equilibrium?

Bess [88]

1. b, the price mechanism would adjust itself in a free market
2. c, they sell almost identical products

4 0

3 years ago

A company is experiencing lower than expected sales. The company’s executives agreed that in order to make up some of the lost r

kicyunya [14]

Answer:

a) The Common stockholder are the stakeholders

b) It is good business practice and ethical

c) $200,000 increase in income before tax

d) Advise the stakeholders based on the calculations made and effect on profit before tax.

Explanation:

The Question is divided into 4 parts and each will be answered as follows

a) Identify the stakeholders in the case: The stakeholders in such a case are the common stock holders.

The objective of any organization as well as its board of executives is to maximize the wealth of the stakeholders or shareholders. As such, any drag in sales will impact profit and lower profit means lower dividend or interest for stakeholders. Any decision taken therefore, will affect the common stock holders the most.

b) Determine whether the proposed change in assets’ useful life is unethical or good business practice?

The ethical nature of the proposed change in assets' useful life is based on how it affects industry practice

Since, its proposal will lead to the company's alignment with industry standard and practices, it means it is ethical and in line with good business practice

Furthermore, since it will lead to an increase in the company's dragging profits, then the common stock holders and every other stakeholder in the organization will have restored confidence in the company. Hence, it is both ethical and good business practice.

c) Determine the effects of executives’ proposed changes on the income before taxes for the year of proposed change?

Initial Depreciation/year ($4,400,000-$400,000)/ 8 $500,000

The proposed Depreciation ($300,000)

($4,400,000-$1,000,000-$400,000)= $3,000,000

$3,000,000/ (12 -2 years)= $300,000

The difference $200,000

This difference represents an increase in income before tax is deducted

d) State what you would do if you were in charge of making the change.

I will primarily advise the stakeholders based on the options available as follows:

If profitability is paramount, in order to ensure that stakeholders enjoy maximized wealth then, we should take the decision to change the depreciation estimates.

Of course, there is also the need to remind everyone that the increase in income before tax also leads to an increase in tax.

5 0

3 years ago

The objectives of U.S. monetary policy are to achieve​ ______.

The objectives of U.S. monetary policy are to achieve ______.