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2 years ago

What is the most important way the federal reserve ensures the United States money supply is safe and in circulation

Business

1 answer:

BlackZzzverrR [31]2 years ago

5 0

Answer:

Federal Reserve increases the money supply in the hands of the public if it buys back issued securities from large banks.

Explanation:

Federal Reserve increases the money supply in the hands of the public if it buys back issued securities from large banks. Conversely, Federal Reserve decreases the money supply in the hands of the public if it sells securities. As a result, the money supply increases.

Federal reserve provides and maintains an effective and efficient payment system. It also regulates banking operations.

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List six elements that should be addressed in a company’s marketing strategy

mario62 [17]

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3 years ago

The present national accounting system does not reflect changes in:

Rama09 [41]

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2 years ago

For every decision you make, there is a trade-off.

AleksandrR [38]

Answer:

True

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2 years ago

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The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm per

morpeh [17]

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3 years ago

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Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1

Harlamova29_29 [7]

Answer:

The answer is below

Explanation:

a) The dividend growth rate is given as D2/D1 - 1

Year Dividend Growth rate

1 $1.25

2 $1.33 ($1.33/ $1.25 - 1) 6.4%

3 $1.4 ($1.4/$1.33 - 1) 5.26%

4 $1.51 ($1.51/$1.4 -1) 7.86%

The arithmetic average growth rate is the average of all the growth rates.

Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%

The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate

The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%

b) The geometric growth rate is given as:

geometric average growth rate =

$(\frac{D_n}{D_o} )^{\frac{1}{n} }-1\\D_n=1.51,D_o=1.25,n=3\\\\Geometric\ growth\ rate=\frac{1.51}{1.25}^{1/3}-1=6.5\%$

The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%

7 0

2 years ago