Answer:
In times of economic downturns to stimulate growth
Explanation:
Open market operations are one of the monetary policies used by the Fed to regulate the money supply in the economy. They involve buying and selling treasury bills to the banks and other financial institutions. Open marker buys, and lowering of interests are expansionary policies used to stimulate economic growth.
By buying treasury bills, the Fed adds money to the banks. Banks exchange treasury bills for liquid cash. As a result, banks end up with excess money in their custody. To make profits, the bank lends out this money to firms and individuals at competitive rates. The availability of easy and low-interest credit encourages borrowing for investments and consumption. Increased economic activities accelerated economic growth. Lowering of discount rates makes loans cheaper, thereby encouraging borrowing.
The choices are:
A. an exchange of assets
B. the purchase of an asset on credit
C. an investment by the owner
D. a withdrawal by the owner
The purchase of an asset on credit will be recorded in the
owner's equity column as an increase.
To
add, the owner's equity<span> represents the owner's investment in
the business minus the owner's draws or
withdrawals from the business plus the net income (or minus the net loss) since
the business began.</span>
Answer:
$20,800,000
Explanation:
Total sales, 80 million
20 million from internet sales
Objective an increase in internet sales by 4 percent
the objective was met, sales from the internet will be,
20 million is the current level
an increase of 4 % is calculated as
= $20,000,000 + ( 4/100 x 20,000,000)
= $20,000,000 + $800,000
=$20,800,000
The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value
<h3>What is
bond?</h3>
A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.
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