All categories

3 years ago

Which tool(s) of monetary policy would the Federal Reserve use if it wanted to increase the money supply?

Business

1 answer:

Lisa [10]3 years ago

6 0

Answer: d. all of the above

Explanation:

If the Federal Reserve wanted to increase the money supply, they could use all the monetary policy tools listed.

Using Open Market operations, they could buy securities from the public and by paying for those securities, they would inject money into the economy. This is how Quantitative Easing works as well.

They would also reduce the reserve requirement or reduce the discount rate as well. The former would allow banks to be able to loan out more money and the latter will make it easier for banks to borrow from the Fed both of which will increase how much banks can inject into the economy.

You might be interested in

Which of the following is NOT a basic assumption of perfect competition? A. Production is characterized by significant economie

Alex17521 [72]

Answer: Production is characterized by significant economies of scale is not an assumption of perfect competition (A)

Explanation:

A perfect competition is a form of market structure that has many buyers and may sellers. In a perfect competition, there is a free entry and exit for producers as there is no barrier.

Also, firms are price takers as no producer can influence the price of the goods in the market unlike in an imperfect competition which is a price maker as producers can influence price. Firms also sell identical products that are the same in quality, size etc.

In a perfect competition, production is not characterized by significant economies of scale. That is an assumption that can be found in monopoly.

Therefore, option A is the right answer.

7 0

2 years ago

Question 7 of 10

Scorpion4ik [409]

Answer:

A. Use the Print option for two-sided printing.

I'd choose A, although I don't really understand what option D means..

5 0

2 years ago

The bookkeeper for Blossom Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is r

Alchen [17]

Answer:

The adjusting entries are given below

Explanation:

Adjusting Entries

Dec 31 (Accrued Interest) Debit Credit

Interest expense $410

Interest payable $410

Dec 31 (Service Revenue) Debit Credit

Account receivable $1,790

Service revenue $1,790

Dec 31 (Salary expense) Debit Credit

Salary expense $750

Salary payable $750

7 0

3 years ago

Hiller Company uses the FIFO method of inventory costing because it wants to maintain a high current ratio during periods of

Vilka [71]

The answer is during the period of inventory valuation. It is the cost linked with an entity’s inventory at every end of the accounting period. The FIFO method means first in, first out technique which undertakes that the first product that was obtained are also the first ones to be retailed or sold.

3 0

3 years ago

Read 2 more answers

On March 12, a company provides services on account to an individual Hospital for $9,100, terms 2/10, n/30. An individual does n

shutvik [7]

To record the transactions with the individual hospital company, the following journal entries are made:

<h3>Journal Entries:</h3>

March 12: Debit Accounts Receivable $9,100

Credit Services Revenue $9,100

To record the sale of services on terms 2/10, n/30.

March 31: Debit Cash $9,100

Credit Accounts Receivable $9,100

To record the receipt of cash in full settlement.

<h3>Transaction Analysis:</h3>

March 12: Accounts Receivable $9,100 Sales Revenue $9,100

Terms 2/10, n/30

March 31: Cash $9,100 Accounts Receivable $9,100

Thus, the journal entries for the customer do not require the recognition of the 2% sales discount since the customer could not pay within the discount window.

Learn more about recording transactions at brainly.com/question/17201601

#SPJ1

3 0

1 year ago