Answer:
sell bonds, increase discount rates and increase reserve requirements
Explanation:
The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements ( Sometimes discount rate management is divided as discount and interest rate) .
Open market operations involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with – the primary dealers – compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.
The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.
Reserve requirements are the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.
the linear stages of growth model, theories and patterns of structural change, the international dependency revolution, and the neoclassical theories. The term economic development is a term that economists, politicians, and others have used frequently.
Answer:
Missing word <em>"Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant"</em>
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Fair Price is based on the current valuation of business and that is $840,000 in this case.
Fair Price = Current Value of Business/Number of Outstanding Shares
Fair Price = $840,000 / 37,000 shares
Fair Price = 22.7027027
Fair Price = $22.70.
Number of Additional Shares = Additional Funding Required/Fair Price Per Share =
Number of Additional Shares = $210,000 / $22.70
Number of Additional Shares = 9251.101321585903
Number of Additional Shares = 9251 shares
So, since additional funding of $210,000 is required, Benjamin will have to sell 9,251 shares as additional shares to the Angel.
