All categories

3 years ago

The fed can increase the federal funds rate by

1 answer:

5 0

The answer is selling Treasury bills, which decreases bank reserves. The government securities that are used in open market processes are Treasury bills, notes or bonds. If the FOMC needs to grow the money supply in the economy it will acquire securities. On the other hand, if the FOMC wants to decrease the money supply, it will vend its securities.

You might be interested in

A year ago, Kim Altman purchased 160 shares of BLK, Inc. for $20.50 on margin. At that time the margin requirement was 40 percen

Semmy [17]

Answer:

85.66%

Explanation:

Calculation for what is the percentage return on the funds she invested in the stock

First step is to calculate the Cost of the shares

Cost of the shares=160 × $20.50

Cost of the shares= $3,280

Second step is to calculate the Margin

Margin=$3,280 × 0.4

Margin= $1,312.00

Third step is to calculate the Funds borrowed

Funds borrowed= $3,280-$1,312.00

Funds borrowed= $1,968.00

Fourth Step is to calculate Interest paid

Interest paid=$1,968.00 × 0.12

Interest paid= $236.16

Fifth step is to calculate Profit on the stock

Profit on the stock=$4,640.00 - $3,280

Profit on the stock = $1,360

(160*29=$4,640.00)

Last step is to calculate the Return on the investment

Return on the investment:m= ($1,360.00 - $236.16)/$1,312.00

Return on the investment=$1,123.84/$1312.00

Return on the investment=85.66%

Therefore the percentage return on the funds she invested in the stock is 85.66%

6 0

3 years ago

How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/

JulsSmile [24]

Answer:

97 days

Explanation:

In simple interest method, the interest is calculated by the following formula

I= P x R x T

I= interest

P = principal amount

R =interest rate

T= Time

In this case

I=$16

P=$1500$

R= 4% or 0.04%

T= time

$16= $1500 x 0.04 x Time

$16 =60 x Time

Time = 16/60

time = 0.2666 year.

time in days = 0.26666 x 365 days

=97.333 days

=97 days

8 0

3 years ago

Alvin Hughes has selected a selling technique in which he has more control over the amount of the conversation between buyer and

trasher [3.6K]

Answer:

The sales presentation technique which Hughes is using is Memorized.

Explanation:

Here, it is given that Hughes has selected a technique in which he has a control over the conversation between the buyer and seller.

So, this type of sales presentation is known as memorized sales presentation.

Sales presentation are of different types:

Webinars
Seminars
Full sales presentation
Business presentation
The elevator pitch nd some more.

Sales conversation: This term is commonly used inside sales.

It is also referred as call conversation between two or more people in an organisation.

Memorized sales presentation: In this type of sales presentation we can approach to our customers by memorizing all of the terms we have to speak about our product to the customers.

It is also known as problem-solution selling.

6 0

3 years ago

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

3 years ago

10. You have just deposited $1000 in an unusual bank account that pays interest biannually (once every 2 years). If the 2-year i

madam [21]

Answer:

FV= $1,259.71

Explanation:

Giving the following information:

Initial deposit (PV)= $1,000

Number of periods (n)= 3 biannual years

Interest rate (i)= 8% = 0.08

<u>To calculate the future value (FV), we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 1,000*(1.08^3)

FV= $1,259.71

6 0

3 years ago