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3 years ago

How could the federal reserve encourage banks to lend out more of their reserves?

1 answer:

5 0

Had to look for the options and here is my answer.
How the Federal Reserve could persuade banks to lend out more of their reserves is by REDUCING THE DISCOUNT RATE. The Federal Reserve is known to be the central bank of the United States which regulates the financial activities of the nation and how this affects their economy. Hope this helps.

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Happy Trails, Inc. manufactures railway coaches and uses the FIFO method of process costing to record costs. The Workminusinmin

sertanlavr [38]

Answer:

80 % of materials ; 43 % of conversion costs

Explanation:

The FIFO method traces equivalent units for materials and conversion costs for the following categories :

Opening Work in Process units
Units started and completed
Ending Work in Process units

So the units not completed from last months are the first to be completed during the month (hence To finish Opening Work in Process). During the year there are units started and completed (hence Units Started and Completed) and units started that never gets completed (hence Ending Work in Process units).

All these physical units need to be expressed to the percentage of work done on them - equivalent units.

The question is focusing on Number 3 - Ending Work in Process units. So 80 % of materials and 43 % of conversion costs were added during October for these units.

4 0

3 years ago

JulsSmile [24]

$9.78 happy to help (:

6 0

3 years ago

Read 2 more answers

You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and th

Vikentia [17]

Answer:

Monthly payment: 460.41 dollars

Effective rate: 4.07%

Explanation:

we will calculate the PTM of an annuity of 25,000 over 5 year at 4%

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $25,000.00

time 60

rate 0.003333333

$25000 \div \frac{1-(1+0.003333)^{-60} }{0.003333} = C\\$

C $ 460.413

Now we need to know the effective rate, which is the same as 4% compounding monthly:

$(1+0.04/12)^{60} = (1+ r_e)^{5}\\r_e = \sqrt[5]{(1+0.04/12)^{60}} - 1$

effective rate = 0.040741543 = 4.07%

8 0

4 years ago

Find the present value of $7,000 in 7 months at 9% interest

Anna11 [10]

Answer:

$= principle \times rate \times time \\ = 7000 \times \frac{9}{100} \times 7 \\ = 4410 \: dollars$

6 0

3 years ago

Read 2 more answers

If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect

tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0

3 years ago