Select the correct answer from each drop-down menu.

The reserve requirement is 10%. Suppose that the Fed $ worth of U.S. government securities a bond dealer, electronically the

victus00 [196]

Answer:

D. The money supply decreases by $150,000.

Explanation:

Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:

The reserve requirement is 10%.

Suppose that the Fed sells $150,000 worth of U.S. government securities from a bond dealer, electronically debiting the dealer's deposit account at Reliable Bank.

Which of the following correctly describes the immediate effect of this transaction on the money supply?

A. The money supply decreases by $1,500,000

B. The money supply decreases by $135,000.

C. There is no change in the money supply.

D. The money supply decreases by $150,000.

E. None of the above.

The explanation to the answer is now provided as follows:

This is an example of Open market operations (OMO).

Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.

When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.

On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.

From the question, the sale of $150,000 worth of U.S. government securities from a bond dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.

Therefore, the correct option is D. The money supply decreases by $150,000.

8 0

3 years ago

In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct?

creativ13 [48]

Answer:

The correct answer is a. In arriving at taxable income, a taxpayer must choose between the standard deduction and itemized deductions.

Explanation:

In tax law, the tax base is the magnitude that results from the measurement of the taxable event. It is defined as the dimension or magnitude of an element of the objective budget of the taxable event that is judged as determining the relative contributory capacity.

In tax legal relations, the taxable event shows the existence of an economic capacity in the subjects, but for the tax to be applied, this fact must be assessed in some way, usually in monetary units.

The tax base is ultimately the magnitude that is used in each tax to measure the economic capacity of the subject, such that it is reflected in ceilings.

7 0

4 years ago

Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 1

Alex Ar [27]

Answer:

1.

Joint costs allocation using the estimated net realizable value method:

Overs: $5,000; Unders: $45,000

2.

Overs should not further process and the company should sell Overs at split-off. It is because the further process cost per unit is more than the incremental in selling price thanks to further process per unit.

Explanation:

1.

We have:

Net realizable value of Overs = Sales value of Overs - Processing cost after split-off of Overs = 2 x 14,000 - 18,000 = $10,000

Net realizable value of Unders = Sales value of Unders - Processing cost after split-off of Unders = 3.14 x 36,000 - 23,040 = $90,000

=> Total net realizable value of the two goods = $100,000; in which Overs accounts for 10%; Unders accounts for 90%.

=> Joint cost allocated to Overs = 10% x 50,000 = $5,000; Joint cost allocated to Unders = 90% x 50,000 = $45,000.

2.

By further processing, one unit of Overs is created the incremental of revenue of: Sell price after further process - Sell price before further processing = $2 - $1.8 = $0.2

Further processing cost per unit of Overs = 18,000 / 14,000 = $1.29.

As revenue incremental per unit is less than further processing cost per unit (0.2 < 1.29); the company should sell Overs at split-off.

8 0

3 years ago

When preparing for an emergency bioterrorism drill, the nurse instructs the drill volunteers that each biological agent requires

Oksanka [162]

Answer: Smallpox spreads rapidly and requires immediate isolation.

Explanation:

Smallpox is a highly contagious disease that can be fatal. Its symptoms are the appearance of pustules throughout the body, fever, headache, and body, among others.

The virus has an incubation period in which it is not contagious, but when pustules appear it is very contagious. The virus is spread by contact with sick patients through bodily fluids, contaminated items, and contaminated air under certain conditions.

Because the virus has a very high contagion rate, and there is no cure, in case a biochemical attack with the use of the smallpox virus, the safety protocol is to quickly isolate people who were exposed to prevent the virus from spreading.

<em>I hope this information can help you</em>

6 0

3 years ago

Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A.

Amanda [17]

Answer:

Every business has a moral duty to be a good corporate citizen.

Explanation:

Businesses are formed to make profit, and this is the primary goal of businesses. So when making a business case for a company to act in a socially responsible manner, the benefit to the business as profits is the primary consideration.

If it is argued that every business has a moral duty to be a good corporate citizen, it does not translate to profits or benefit for the company.

So this is a weak argument when a business case is being created for why businesses should act in a socially responsible manner.

3 0

3 years ago