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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.

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Safeco’s current assets total to $20 million versus $10 million of current liabilities, while Risco’s current assets are $10 mil

dlinn [17]

Answer:

b. The transactions would lower Safeco's financial strength as measured by its current ratio but raise Risco's current ratio

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities

So,

For Safeco, the current ratio would be

= $20 million ÷ $10 million

= 2 times

And for Risco, the current ratio would be

= $10 million ÷ $20 million

= 0.5 times

After borrowing, the current ratio would be

The current assets and the current liabilities would be increased by $10 million in each side.

For Safeco, the current ratio would be

= $30 million ÷ $20 million

= 1.5 times

And for Risco, the current ratio would be

= $20 million ÷ $30 million

= 0.67 times

By comparing the current ratio, we get to know that The Safeco current ratio would be decreased whereas, the Risco current ratio is increased

Hence, option b is correct

4 0

3 years ago

What is one action an employer can take to lower wage levels?

Serjik [45]

The answer is C. Replace workers with machine

It's common for a company to replace workers with maschines in order to do hard menial labour such as wrapping packages, cutting products, shaping the products, moving the raw material, etc. which could increase efficiency and lower wage levels at the same time

6 0

3 years ago

Assume you borrowed $100,000 at a fixed rate of 7 percent for 30 years to purchase a house. If the inflation rate is 3 percent,

nikitadnepr [17]

Answer:

(A) less

Explanation:

Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.

Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.

This means, $100,000 today will have the same value as $103,000 one year later.

Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.

6 0

3 years ago

Properly designing a protective packaging system requires three important kinds of information. Which of the following is not on

lutik1710 [3]

Answer:

value of the product to be protected

Explanation:

The value of the products that are being shipped or distributed should not be included in the protective package.

The severity of the distribution environment refers to whether the products are hazardous or not, e.g. pesticides should be dealt very carefully because they are poisonous.

The fragility of the product to be protected refers to the materials used to build the product, e.g. products made of glass are extremely fragile.

The performance characteristics of various cushion materials. refers to what type of cushioning was used to protect the product during shipment.

4 0

3 years ago

2. A company's board of directors votes to declare a cash dividend of $.80 per share of common stock. The company has 16,000 sha

jeyben [28]

Answer for the first one is $12,800

6 0

3 years ago