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.
Answer:
<h2>Mission Statement</h2>
Explanation:
A brief description of a company's purpose is called mission statement, it tells about the company's purpose for the public and employees. It varies from company to company as because every company describes it differently.
A mission statement is important as it serves as a base line for everyone in the organisation. It serves as the basis for effective business planning. Mission statements are used in marketing as they are a company's public face. Companies also include them on their websites. A good mission statement can inspire, surprise and transform your business
Any interest that you receive from a bank is taxable income, so I guess its false
This statement is true. Teenagers have a higher price elasticity than do adults.
This is because teenagers does not have much income to spend so they can shift to other products also. Teenagers are also not addict to smoking or any other habits , Therefore price affects the demand of the product.
Price elasticity is defined as the ratio of the percentage change in quantity demanded due to percentage change in price.
Elasticity having more than 1 are relatively more elastic.
Adults have more income to spent so the demand do not effects due to change in price. As adults are more addicted to smoking then teenagers ,
addicted people did not consume less due to its price change.
To know more about price elasticity:
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Answer:
$800
$1,000
The quantity of money demanded decreases as the interest rate rises.
Explanation:
a
To calculate the opportunity cost on government bond at 8%, we use the following method
Opportunity Cost for 8% interest rate on Government Bonds
= (8/100)%× $10,000
= 0.08% ×$10,000
= $800
To calculate the opportunity cost government at bond on 10%, we use the following method
Opportunity Cost for 10% interest rate on Government Bonds
= (10/100)%× $10,000
= 0.1%×$10,000
= $1,000
b. The quantity of money demanded decreases as the interest rate rises.
