Answer(1)
<em>b. interest rate at which banks can borrow reserves from the Federal Reserve</em>
Explanation:
The discount rate is known in America as the rate of interest which a central bank charges on its loans and advances to a commercial bank. This loans and advances are from the federal reserve.
Answer (2)
<em>a. more reserves, causing an increase in lending and the money supply</em>
Explanation:
Excess lending from the national reserve due to a lowered discount rate will lead to a reserve supply excess into commercial banks throughout the economy and expands the money supply .
Answer:
Juliana, the HR manager at Hudson Corp. would be applying the system of c. merit pay
Explanation:
Merit pay describes payment made to an employee if it has been measured and proven that the employee performed well and successfully achieved a set target.
The question is about paying incentives to high-performing employees and so, merit pay best describes the scenario being portrayed.
Explanation:
Households supply labor to firms and are paid wages in return. Firms use that labor to produce pizzas and sell those pizzas to households. There is a flow of goods (pizzas) from firms to households and a flow of labor services (worker hours) from households to firms.
Answer:
Consider the likelihood that the risks could result in material misstatements.
Explanation:
The risk of material misstatement is the risk that the financial statements of an organization have been misstated to a material degree. This risk is assessed by auditors at the following:
At the assertion level. This is further subdivided into inherent risk and control risk. Inherent risk is the susceptibility of an assertion to misstatement because of error or fraud, before considering controls. Control risk is the risk of misstatement that will not be prevented or detected by a reporting entity's internal controls.
At the financial statement level. Relates to the financial statements as a whole. This risk is more likely when there is a possibility of fraud.
