1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rama09 [41]
3 years ago
13

"Raising the interest rate on reserves above the current fed funds rate means that the floor of reserve demand will push the equ

ilibrium fed funds rate up along with the interest rate on reserves. Both borrowed reserves and non-borrowed reserves will remain the same."
a. True
b. False
Business
1 answer:
Dennis_Churaev [7]3 years ago
3 0

Answer:

True.

Explanation:

The federal fund rates, commonly referred to as fed funds rates can be defined as the interest rate at which banks in the U.S lend money to other depository financial institutions, such as credit union or banks, mainly without any collateral and on an overnight basis.

Raising the interest rate on reserves above the current fed funds rate means that the floor of reserve demand will push the equilibrium fed funds rate up along with the interest rate on reserves. Both borrowed reserves and non-borrowed reserves will remain the same.

However, when the Fed reduces the interest rate on reserves below the current fed funds rate, it simply means that, there would be a leftward shift in the demand for reserve line, at any given interest rate. Thus, causing the fed funds rate to decrease, while borrowed reserves and non-borrowed reserves remain unchanged.

You might be interested in
Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

= $460,500

When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

8 0
2 years ago
Read 2 more answers
Can anyone suggest me the best web development service around the world?
Amanda [17]

Answer:

Wix, is a good one.

Explanation:

It allows custom ability, is easy to run and profitable.

3 0
2 years ago
Green Care Landscaping Company minimizes attention to a price increase by selling lawn care treatments to a subsidiary, Keep It
Len [333]

Answer:

The correct answer is B. indirect blindness.

Explanation:

Blindness is lack of vision. It can also refer to vision loss that cannot be corrected with conventional lenses or with contact lenses.

Partial blindness means that you have very limited vision.

Complete blindness means that you cannot see anything and DO NOT see the light. (Most people who use the term "blindness" mean complete blindness.)

People with less than 20/200 vision with glasses or contact lenses are considered legally blind in most states in the United States.

Vision loss refers to partial or complete loss of vision. Such loss of vision can happen suddenly or over time.

4 0
2 years ago
Pete has started an electronics firm with the potential for high growth. he obtains funding for the business from a group of inv
TiliK225 [7]
The type of financing that Pete has secured is VENTURE CAPITAL. Venture capital is a type of private equity, a form of financing that provides funds by private investors to new companies with high potentials or emerging companies that are deemed to have high potentials. In return for the money provided by the private investors, they become part owners in the company.
7 0
3 years ago
Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a season
Oduvanchick [21]

Answer:

the answer is : the shareholder can buy as many he wants to owned

Explanation:

for a investment company when they offers a new shares , and the shareholders who has been buying every time with the same company they get a benefits from new shareholders , that is why any one them can buy any share without limit.

6 0
3 years ago
Other questions:
  • Fairchild Garden Supply expects $700 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses thi
    13·1 answer
  • You are a foreign exchange student studying in Switzerland. You are from Australia and currently have Australian dollars and som
    12·1 answer
  • While terri cannot remember what she ate for lunch, she recalls a wide number of facts and is someone you always want on your te
    15·2 answers
  • Active monetary policy
    7·1 answer
  • It is theorized that the price per share of a stock is inversely proportional to the prime​ (interest) rate. In January​ 2010, t
    5·1 answer
  • Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning
    6·1 answer
  • On May 1, Year 1, Benz’s Sandwich Shop loaned $16,000 to Mark Henry for one year at 8 percent interest. Required a. What is Benz
    11·1 answer
  • Olaoaoaosoodjsdujbcjhdhdjshdskdj dhehehkb
    6·1 answer
  • Margaret puts money into her savings account each month. in this example money is functioning as a
    7·1 answer
  • Can someone explain how I you know submit a resume? I learned how to fill one out freshman year but they never told me how to su
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!