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3 years ago

When the fed sells treasury bonds on the open market, it will tend to?

1 answer:

7 0

Here is my answer. DECREASING THE MONEY SUPPLY AND RAISING THE INTEREST RATES is what happens when the Treasury Bonds are being sold by Fed on the open market. An open market is also the same with free market wherein there are only minimal restrictions. Hope this helps.

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Open-end mutual funds are the most common type of investment company. Which of the following statements characterize these funds

victus00 [196]

Answer:

The statements that characterizes these funds is:

a. Fairly liquid investments.

b. Issue new shares in response to increased demand.

c. Increase diversification but do not reduce nonsystematic risk.

Explanation:

a) Fairly Liquid Invetsment: TRUE, as on the basis of demand the fund issuer can repurchase or reissue extra securities at any time so as to ensure proper liquidity to the investment.

b) Issue New Share for Increase Demand: TRUE, issuer can increase and decrease the no. of securities for trading as the demand for the same increases.

c) Increase diversification but not reduce unsystematic risk: TRUE. As Mutual Funds generally increase diversification of funds by investing in various sectors to minimize the systematic risk of the market but it cannot control the unsystematic risk of the market.

d) Require Minimum Purchase of 3000: FALSE. As the Minimum investment for the mutual funds starts from 250 or 1000 and not 3000.

e) Charges High Fees for Professional Managment: FALSE, As most of the open-ended mutual fund just charges 0.85% or low of the Investment Amount as total Expenditure for providing services, which is not so high as compared to returns provided by them.

Therefore, The statements that characterizes these funds is:

a. Fairly liquid investments.

b. Issue new shares in response to increased demand.

c. Increase diversification but do not reduce nonsystematic risk.

3 0

3 years ago

Consider the economies of Macmillana and Bloedelo, which are identical except that the multiplier in Macmillana is smaller than

GrogVix [38]

Answer:

Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:

1) The keynesian multiplier is smaller.

The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.

2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.

Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.

Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.

3 0

4 years ago

Calla Company produces skateboards that sell for $56 per unit. The company currently has the capacity to produce 95,000 skateboa

Tema [17]

Answer:

Calla Company

Three-column comparative Income Statement:

Normal Special order Total

Sales Revenue $4,580,800 $673,200 $5,254,000

Cost of sales:

Direct materials $ 981,600 $158,400 $1,140,000

Direct labor 613,500 99,000 712,500

Overhead 954,000 76,973 1,030,973

Selling expenses 558,000 84,151 642,151

Administrative expenses 477,000 890 477,890

Total costs and expenses $ 3,584,100 $419,414 $4,003,514

Net income $ 996,700 $ 253,786 $1,250,486

Explanation:

a) Data and Calculations:

Annual production capacity = 95,000 units

Actual annual production and sales = 81,800 units

Special order (units) = 13,200

Selling price (normal) = $56 per unit

Special order selling price = $51 per unit

Direct materials $ 981,600

Direct labor 613,500

Overhead 954,000

Selling expenses 558,000

Administrative expenses 477,000

Total costs and expenses $ 3,584,100

Three-column comparative Income Statement:

Normal Special order Total

Sales volume 81,800 13,200 95,000

Selling price $56 $51

Sales Revenue $4,580,800 $673,200 $5,254,000

Cost of sales:

Direct materials $ 981,600 $158,400 $1,140,000

Direct labor 613,500 99,000 712,500

Overhead 954,000 76,973 1,030,973

Selling expenses 558,000 84,151 642,151

Administrative expenses 477,000 890 477,890

Total costs and expenses $ 3,584,100 $419,414 $4,003,514

Net income $ 996,700 $ 253,786 $1,250,486

1. Direct materials cost per unit = $981,600/81,800 = $12

2. Direct labor cost per unit = $613,500/81,800 = $7.50

3. Variable Overhead cost = $954,000/2 = $477,000

Variable overhead cost per unit = $477,000/81,800 = $5.83129

4. Variable selling expenses = 70% of $558,000 = $390,600

Variable selling expenses per unit = $390,600/81,800 = $4.77506

Additional selling expense per unit = $6.37506 ($4.77506 + $1.60)

Selling expense for special order = 84,151($6.37506 * 13,200)

5. Administrative expenses increased by $890

8 0

3 years ago

Capital allocation line is _______________ Question 18 options: plot of risk-return combinations available by varying portfolio

NemiM [27]

Answer:

plot of risk-return combinations available by varying portfolio allocation between a risk-free rate and a risky portfolio

Explanation:

The capital allocation line (CAL) is called as the capital market line tha developed on the graph for all the expected combinations related to the risk-free and risk assets. In this, the graph presented the return investor that expected earn by assuming the particular level of risk along with the investment

Therefore the first option is correct

7 0

3 years ago

Houseal Corporation has provided the following data from its activity-based costing system:

pishuonlain [190]

Answer:

Product margin per unit= $10.19

Explanation:

Giving the following information:

Activity Cost Pool Total Cost Total Activity

Assembly $ 613,250 55,000 machine-hours

Processing orders $ 46,170 1,500 orders

Inspection $ 146,110 1,900 inspection-hours

First, we need to calculate the estimated overhead rate for each activity cost pool:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 613,250/55,000= $11.15 per machine hour

Processing= 46,170/1,500= $30.78 per order

Inspection= 146,110/1,900= $76.9 per inspection hour

We will calculate the total cost of production and then the unitary cost to determine the product margin:

Total cost= direct material + direct labor + allocated overhead

Selling price per unit $ 113.70

Direct materials cost per unit $ 48.14

Direct labor cost per unit $ 11.62

Annual unit production and sales 360

Annual machine-hours 1,040

Annual orders 60

Annual inspection-hours 30

Total cost= 48.14*360 + 11.62*360 + (1,040*11.15 + 60*30.78 + 30*76.9)= 37,263.4

Unitary cost= 37,263.4/360= 103.51

Product margin= selling price - unitary cost= 113.70 - 103.51= $10.19

3 0

3 years ago