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3 years ago

Which of the following is NOT a way that the Fed controls the money supply?

Business

1 answer:

Grace [21]3 years ago

7 0

Answer:

A-Changing federal income tax rates

Explanation:

The Fed controls the money supply using monetary policy tools. Monetary policy is either expansionary or contractionary. The Fed chooses which policies to apply depending on the prevailing economic conditions.

Monetary policy tools available to the Fed include reserve requirements, interest on reserves, open-market operations, discount rates, and the federal fund rate.

The Fed does not set the federal income tax rates. Taxes are part of the fiscal policy applied by the executive arm of government. The government alters taxation to achieve desired macroeconomics objectives.

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Identifying the needs a business will address is a good example of the _______ of the organization.

Flura [38]

The answer for this question is C.

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2 years ago

Read 2 more answers

You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond

drek231 [11]

Answer:

the yield to maturity of this bond is 5.7%

Explanation:

given data

pays interest annually C = $64

face value F = $1,000

current market price P = $1,062.50

bond matures n = 30 years

solution

we get here yield to maturity that is express as

yield to maturity =

yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2 ] .................1

put here value and we get

yield to maturity = $\frac{64+(1000-1062.50)}{11}$ ÷ $\frac{(1,000+1,062.50)}{2}$

yield to maturity = 0.057

so that the yield to maturity of this bond is 5.7%

6 0

2 years ago

Develop a realistic example in which you expect positive covariance

AURORKA [14]

Answer:

Composure and time management

Explanation:

these are realistic goals that people can reach and will have a positive outcome (do you mind following)

3 0

3 years ago

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

Aloiza [94]

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = $\mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}$

$=\$ 250 /(1+0.08) \wedge 19$

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

7 0

2 years ago

Beedle issued a 10-year bond to Aeron Company on 1/1/20x6. The bonds have a 6% annual interest rate and pay interest semi-annual

Mama L [17]

1. The issue price of the bonds is<u> $215,589.16</u>.

2. An amortization schedule through 20x9 is as follows:

<h3>Amortization Schedule:</h3>

Period PV PMT Interest Expense Amortization FV

1 $215,589.16 $6,000 $5,389.73 $610.27 $214,978.89

2 $214,978.89 $6,000 $5,374.47 $625.53 $214,353.36

Year 2

3 $214,353.36 $6,000 $5,358.83 $641.17 $213,712.20

4 $213,712.20 $6,000 $5,342.80 $657.20 $213,055.00

Year 3

5 $213,055.00 $6,000 $5,326.38 $673.62 $212,381.38

6 $212,381.38 $6,000 $5,309.53 $690.47 $211,690.91

Year 4

7 $211,690.91 $6,000 $5,292.27 $707.73 $210,983.18

8 $210,983.18 $6,000 $5,274.58 $725.42 $210,257.76

3. The journal entry recorded by Beedle on January 1, 20x6 is as follows:

Debit Cash $215,589.16

Credit Bonds Payable $200,000

Credit Bond Premium $15,589.16

To record the issuance of $200,000 at 6% interest, semi-annually.

4. The amount in the accounts at the end of 20x6 are:

A. Bond payable $200,000

B. Premium $14,353.36 ($15,589.16 - $610.27 = $625.53)

C. Fair value adjustment on Bond payable = $1,235.80 ($610.27 = $625.53)

D. Interest expense = $10,764.20

5. The journal entry to record the bond retirement transaction on 12/31/20X8 is as follows:

Debit Bonds Payable $200,000

Debit Bonds Premium $12,000

Credit Cash $212,000

To record the bond retirement.

<h3>Data and Calculations:</h3>

Maturity period = 10 years

Interest rate = 6% semi-annually

Interest payment dates = June 30 and December 31

Market rate = 5%

Face value = $200,000

Semi-annual coupon payment = $6,000 ($200,000 x 3%)

Fair value of the bonds at December 31:

12/31/20X6 $ 213,200

12/31/20X7 $ 213,300

12/31/20x8 $ 212,000

<h3>Issue Price Calculations:</h3>

N (# of periods) = 20 (10 years x 2)

I/Y (Interest per year) = 5%

PMT (Periodic Payment) = $6,000 ($200,000 x 6% x 1/2)

FV (Future Value) = $200,000

Results:

PV = $215,589.16

Sum of all periodic payments = $120,000 ($6,000 x 20)

Total Interest $104,410.84

Learn more about recording bond transactions at brainly.com/question/15877561

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5 0

2 years ago