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Gala2k [10]
3 years ago
11

Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security

Business
2 answers:
expeople1 [14]3 years ago
4 0
Answer : It hopes to make more money available for loans.
vladimir2022 [97]3 years ago
4 0

A. It hopes to reduce the amount of money available for lending.

Explanation:

Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.

If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.

Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.

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Levitt promoted the idea that the success of companies like McDonald's and Coca-Cola that sell essentially the same products eve
Ksivusya [100]

Answer:

Globalization of markets and brands

Correct option A

Explanation:

Globalization has enabled firms to specialize and to increase the intensity of R&D, innovation and capital in their output.

Globalization has made it easier for new companies to start competing with old companies.

Globalization has made companies to increased the number of people that it employs, both through exports and imports.

4 0
3 years ago
A 10 year 7% municipal bond, quoted on a 5.00 basis, is priced at 104. A 10 year 6% municipal bond, quoted on a 5.00 basis, is p
goldfiish [28.3K]

Answer:

D. 102.2

Explanation:

Using a simultaneous equation

Since the year is constant

We will use the the basis and municipal bond as our variables

So equation 1 = 7x+5y=104

Eqn ii= 6x + 5y= 101

Using eliminating method

X=3

Substitute for x in equation 1 to get the value of y

7(3) + 5y=104

5y=104-21

Y=16.6

To get the price for the percent of 6.40 at 5% basis substitute for the value of X and Y respectively in the both equation

6.4x+5y=?

6.4(3) + 5(16.6)=

19.2+83=102.2

3 0
3 years ago
Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also can enable the company to
Makovka662 [10]

Answer:

the type of stores to open

Explanation:

Through GIS, Starbucks has been able to determine ideal locations for its new stores. Also, GIS has helped Starbucks understand the types of stores to open in terms of size, features, etc in those new locations to improve and maintain great customer satisfaction convenience of patronage.

Cheers.

6 0
3 years ago
Firm A produces desks. It is situated in the US but imports wood from Brazil. Last year it imported $8,000 in lumber and sold 10
Veronika [31]

Answer:

The correct answer is C: 48000

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

<u>The formula is: </u>

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

AddedGDP= 56000-8000

AddedGDP= 48000

6 0
3 years ago
Changes in inventories are included as part of investment spending because multiple choice 1 anything produced by a business tha
Nataly_w [17]

Answer:

A)Changes in inventories are included as part of investment spending because anything produced by a business that has Anything produced by a business that has not been sold during the accounting period is something in which the business has invested

B)If inventories declined by $1 billion during 2012, then $1 billion would be subtracted from both gross private domestic investment and gross domestic product.

Explanation:

A) All inventories that Businesses could have is expected to be utilized by the business. Example of this is that Iron sheet that a business could use in making new Factory building or a pack of toiletries in the shelf in supermarket are both asset as regards to the business and they are things that are been invested by the business.

B)Declination in inventories symbolize that produced goods in previous years has been used up in production of current year. In the case that that the stated $1 billion is not deducted, then there would be need to count the produced goods that was produced in previous year as been produced in 2022

3 0
2 years ago
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