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AveGali [126]
2 years ago
8

The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part

of its effort to keep the interest rate​ low, the Fed purchased government bonds worth​ $300 billion between March and September 2009. By​ October, the Fed held​ $770 billion in government​ securities, nearly double its​ pre-crisis total. Before the​ crisis, the Fed held mainly government​ securities, which it used to control the quantity of money in the economy. Now government securities make up just​ 35% of the​ Fed's balance sheet.
Explain how the Fed uses its government securities to control the nominal interest rate
When the Fed purchases government securities, bank reserves ______ and bank deposits ______.
A. increase; increase
B. decrease; increase
C. decrease; decrease
D. increase; decrease
Business
1 answer:
romanna [79]2 years ago
8 0

Answer:

D. increase; decrease

Explanation:

$2200; increased; 300

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All of the following are disadvantages of using the average rate of return except:____________.
ad-work [718]

Answer:

c. the average rate of return method includes the entire amount of income earned over the life of the proposal.

Explanation:

the average rate of return is a capital budgeting method.

Average rate of return = Average net income / Average book value  

Average book value = (cost of equipment - salvage value) / 2

From the above formula, it can be seen that the entire income earned over the life of the project is used when calculating average rate of return.

the average rate of return method does not consider the timing of the expected cash flows. or use present values unlike the net present value and internal rate of return.

Net income is used instead of expected cash flows when calculating ARR

5 0
3 years ago
Kasey Corp. has a bond outstanding with a coupon rate of 5.86 percent and semiannual payments. The bond has a yield to maturity
BaLLatris [955]

Answer:

Market price = $2,464.21

Explanation:

coupon rate = 5.86% / 2 = 2.93%

YTM = 4.3% / 2 = 2.15%

face value = $2,000

periods to maturity = 24 x 2 = 48

Present value of face value = $2,000 / (1 + 2.15%)⁴⁸ = $720.42

Present value of coupon payments = $58.60 x {[1 - 1/(1 + 0.0215)⁴⁸ ] / 0.0215} = $1,743.79

Market price = $2,464.21

3 0
3 years ago
What happens when sellers compete with other sellers to meet consumer's demands, and consumers compete with other consumers to f
Marrrta [24]

Answer:

Markets are competitive.

Explanation:

In the competitive market, the number of sellers competed with each other in terms of prices, quality, maximize the market share.

In the given situation, various sellers are competed with each other for meeting out the consumer demands also at the same time it offers the goods at lowest cost and highest quality so that it capture the whole market

Therefore the second option is correct

6 0
3 years ago
In 2005, a loan broker and appraiser working for a subsidiary of Bank of America appraised the Cassies home at a fair market val
Tomtit [17]

Answer:

C. The Cassies will win.

Explanation:

In the given case, the cassies would win as this was appraisal fraud that done by the company employee who is a Bank of america Subsidiary. Here the loan broker and the appraiser increase the fair market value of cassies home i.e. $620,000 but it would be lesser that is $250,000. So this inflate the value in order to make the payment of high rate with related to the mortgage

3 0
3 years ago
Please help
Umnica [9.8K]

You are responsible for implementing activities for a group of six foreign students and eight American students who are they

7 0
3 years ago
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