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
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.

You might be interested in
Environmental scanning is the act of analyzing the critical external contingencies and trends facing an organization in terms of
alekssr [168]

Answer:

The correct answer is the option B: economic conditions, competitors and customers.

Explanation:

To begin with, the term of <em>environmental scanning</em> refers to the action of analyzing the forces, both internal and external, whose actions affect the organization in its whole and may give the company opportunities or threats, sthrengths or weaknesses. Moreover, when refering to the external part of the analysis the most important groups to have in mind are those outside the organization and that it may not take control over decisions directly. Those items or groups are: <u>the competitors, the customers, economic conditions</u>, the government, market suppliers, intermediaries and more.

5 0
3 years ago
Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures h
a_sh-v [17]

The annual premium for Zack's house would be <u>cheaper</u> through <em>AAA </em>than <em>Thompson’s Insurance. </em>

<h3>How to calculate the annual premium of two companies? </h3>

AAA company is offering $0.36 per $100 of value.

Thompson company is offering $3.63 per $1,000 of value;

\frac{3. 63 }{1000} \\=\frac{0.363}{100}

Hence, <u>0.363</u> is higher than 0.36, which makes <em>AAA company </em>more beneficial for insurance.

Learn more about premium calculation here:

brainly.com/question/2644714

4 0
2 years ago
‘An enterprise may capture value through either innovation leadership or innovation followership'. Discuss this statement with t
Gala2k [10]

Explanation:

This statement is true, due to the fact that a company to stand out in the market must have a strategy that guarantees significant advantages over its competitors, that is, the company must be prepared to have its own identity in the market that gives it value, what can be achieved through innovation.

An example of innovation leadership and followers of innovation is the case of entrepreneur Jeff Bezos, founder of Amazon, a pioneer in internet sales. It can be said that through the innovative vision that Jeff Bezos has, he managed to found a company that sold books online in 1994, a time when the internet was not so widespread and few people had access. Therefore, Bezos, through leadership in innovation, transformed his company into an empire with several different businesses, always following technological changes and people's behaviors, to always follow market innovations and keeping his company always competitive, being a world technology giant.

6 0
3 years ago
15. Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetariani
bearhunter [10]

Answer: Target market

Explanation:

Target market could be defined as those group who a producer deem fit to use his or her product. When a producer makes an item, he has a group of people in mind that would buy because they need it, those group of people are the target market. Every producer considered this.

The real estate agent target market are vegetarian because he's renting the houses for what it was specified to be

8 0
3 years ago
The market capitalization rate on the stock of Aberdeen Wholesale Company is 12%. Its expected ROE is 14%, and its expected EPS
Dmitry_Shevchenko [17]

Answer:

100

Explanation:

The market capitalization rate is 12%

= 12\100

= 0.12

Its expected ROE is 14%

= 14/100

= 0.14

The expected EPS is $3

The Plow back ratio is 80%

= 80/100

= 0.8

The first step is to calculate the dividend payout ratio

= 1-0.8

= 0.2

The expected dividend can be calculated as follows

=0.8×3

= $2.4

The growth rate can be calculated as

follows

= 0.8×0.14

= 0.112×100

= 112%

The value can be calculated as follows

= 2.4/0.12-0.112

= 2.4/0.008

= 300%

Therefore, the P/E ratio can be calculated as follows

= 300/3

= 100

7 0
3 years ago
Other questions:
  • Read the following scenario: A contributing member of a project is out sick. Identify the possible risks to the project. Busines
    12·2 answers
  • Inattentive Driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy
    12·1 answer
  • How would you define a business plan?
    8·1 answer
  • ERIC: Hi, Hubert. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the
    7·1 answer
  • Preferred stocks share characteristics with which of the following? A-Common stocks and corporate bonds. B-Real estate and commo
    7·2 answers
  • When you ____________ you spend money on something with the expectation that it will return a greater value in the future.
    9·2 answers
  • Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you
    14·1 answer
  • Which of these is a characteristic of certificates of deposit (CDs)?
    10·2 answers
  • Jessica purchased a home on January 1, 2018 for $580,000 by making a down payment of $230,000 and financing the remaining $350,0
    9·1 answer
  • The pair of items that is likely to have the largest positive cross-price elasticity of demand is:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!