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grandymaker [24]
3 years ago
15

If the federal funds rate were above the level the Federal Reserve had targeted, the Fed could move the rate back towards its ta

rget by a. selling bonds. This selling would increase the money supply. b. buying bonds. This buying would increase the money supply. c. buying bonds. This buying would reduce the money supply. d. selling bonds. This selling would reduce the money supply.
Business
1 answer:
Dmitriy789 [7]3 years ago
4 0

Answer:

The correct answer is option b.

Explanation:

If the federal fund's rates were above the targeted rate, the Fed would need to move it towards the targeted rate. To move the interest rate towards the targeted rate, the government would need to increase the money supply. This can be done by buying bonds. When the Fed buys bonds they pay for it, this causes the money supply to increase. As the supply curve shifts to the right, the interest rate will fall down.

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Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at
igomit [66]

Answer:

The yield to call is 2.24%.

Explanation:

To calculate the yield to call, you can use the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2)

YTC= Yield to call

C= Annual Coupon: 0

CP= Call price of the bond: $509

P= Price of the bond: $455

t= time remaining until call date: 5

YTC= (0+(509-455)/5)/((509+455)/2)

YTC=(54/5)/(964/2)

YTC= 10.8/482

YTC= 0.0224= 2.24%

3 0
3 years ago
Read 2 more answers
Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent,
LenKa [72]

Answer:

22.7 %

Explanation:

We can solve two of the problems using Capital Asset Pricing Model (CAPM) which is as follows:

Ra= Rf + (Rm-Rf)*B

Where,

Ra= Rate of return on stock

Rm= Rate of return on market

Rf= Risk Free rate

B= Beta coefficient of stock

Now we can move for your problem

Prob1) Ra= .15, Rf= .08, Rm= .13, B= ?

.15=.08+(.13-.08)B

Therefore, beta Coefficient = 1.4              

Prob2: Ra= ?, Rf= .04, Rm= .15, B=1.7

= .04+(.15-.04)*1.7

Therefore, Ra=0.227 = 22.7 %

4 0
3 years ago
A couple bought some stock for $30 per share that pays an annual dividend of $0.60 per share. After 2 years the price of the sto
Archy [21]

Answer:

Return on Investment  is 12%.

Explanation:

Net income = Dividend = $0.60

Current Value = $33

Original Value = #30

Formula for Return on Investment:

Return on Investment = (Net Income + (Current Value - Original Value)) / Original Value x 100

ROI = (($0.60 + ( $33 - $30 ) ) / $30 ) x 100

ROI = (($0.60 + $3 ) / $30 ) x 100

ROI = ( $3.60 / $30 ) x 100

ROI = 0.12 x 100

ROI = 12%

So Return on Investment is 12% for the given investment.

7 0
3 years ago
The effects of depreciation to the entire domestic economy​
suter [353]

Answer:

Snsnnsns

Explanation:

Sans Yshhsnhhhshhnshhhjujusjuujejuujujijji

8 0
3 years ago
Why is it often difficult for a new supervisor or manager to be promoted from within? What specific challenges often accompany t
mina [271]

Answer:

It is difficult for new supervisors and managers to be promoted from within because adequate training are not provided. Most of the good habits that make up a good leader must be learned.

Explanation:

Challenges faced by new managers include:

1) Managing others while still actually working

It is important for managers to know how to differentiate between times they can focus their attention to employee concerns and times they decide not to attend to anyone and whether this is applicable to their team.

A calender will be needed for this type of situation.Schedule regular check-ins with employees, and block off times for you to focus on your own work. Unexpected and urgent situations will always arise, so you will have to add in some flexibility.

Resist the urge to make yourself available to every demand that comes your way.

2. Managing friends and former peers

When you attain the new rank of a manager, it is important to define the boundaries of your relationships with your subordinates as soon as possible.

Explain what you require from your staff and what they can expect from you. For your part, they will expect your trust, communication, and fairness, no matter how your relationship was defined before you were promoted as a manager.

3. Trying to make changes too quickly

First-time managers are always very excited to start making their marks on the organisation, but if you force too many changes at a fast rate, your staff may push back.

Take a collaborative approach on making changes to get the support of your staffs.

4. Giving direct feedback

A lot of new managers sometimes have a hard time delivering important feedback or having difficult conversations.

If you avoid telling an employee their faults and how they need to shape up, you might end up driving away others on your staff including your top performers by letting the problem spread.

It is also important to give positive feedback regularly.

8 0
3 years ago
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