Answer:
a. If Seth dies in 2015, a loss can be claimed on his final return for his unrecoverable cost of the annuity.
Explanation:
Fixed-Period Annuity
The fixed-period, or period-certain, annuity guarantees payments to the annuitant for a predetermined length of time. Some common options are 10, 15, or 20 years. In a fixed-amount annuity, the annuitant elects an amount to be paid each month until death or benefits are exhausted. If the annuitant dies before the defined benefit is paid, some plans provide for the remaining benefits to be paid to a beneficiary. This feature applies if either the full period has not yet elapsed or a balance remains on the account at the time of death, depending on the plan. However, if the annuitant outlives the fixed period or exhausts the account before death, no further payments are guaranteed. If the plan provides for the continuation of benefits, payments continue to be paid to the beneficiary until the predetermined period elapses or the balance reaches zero.
Answer:
Lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
Explanation:
<h3>General Concepts:</h3>
Monetary policy.
Expansionary monetary policy.
Contractionary monetary policy.
Open market operations.
Open market sale.
<h2>What is a Monetary Policy?</h2>
The Federal Reserve (or the Fed) implements its monetary policy by increasing or lowering the nation's money supply to achieve macroeconomic goals. The two types of monetary policies are <em>expansionary</em> and <em>contractionary</em> <em>monetary policies</em>.
<h3>Expansionary Monetary Policy</h3>
The Fed implements an expansionary monetary policy during periods of <em>recession</em> to increase the nation's money supply and stimulate aggregate demand for goods and services. The Fed has the following tools to implement its expansionary monetary policy:
- Purchasing of government securities through the Federal Open Market Committee's (FOMC) <u>open market operations</u> (OMO). The OMO increases the banks' reserve account, which allows the latter to loan its <em>excess reserves</em>.
- Lowering the reserve requirement means that the depository institutions will only have to maintain a lesser fraction of their <em>checkable deposits</em>. This allows banks to loan their excess reserves, thereby stimulating investment and consumer spending.
- Lowering the discount rate below the <em>federal funds rate</em> enables<em> reserve deficient </em>depository institutions to acquire a <u>discount loan</u> from The Fed at a lower <em>discount rate</em>.
<h3>Contractionary Monetary Policy</h3>
The Fed implements a contractionary monetary policy during periods of <em>inflation</em>, which decreases the nation's money supply and slows down economic growth. The following are the Fed's tools for implementing its contractionary monetary policy:
- The FOMC's open market sale of U.S. Treasury securities decreases the depository institutions' reserve account, and reduces the monetary base. Consequently, the banks will have lesser reserves to loan to borrowers.
- Increasing the required reserve ratio implies that the banks must maintain a larger portion of its required reserves. This action increases the cost of loaning funds from other banks through the <em>federal funds market</em>, which discourages consumer and investment spending.
- Increasing the discount rate above the federal funds rate discourages banks to acquire discount loans from the Fed. The banks' repayment of previous discount loans to the Fed also decreases the money supply.
<h2>Final Answer:</h2>
We can infer that lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
<h3>______________________</h3>
Learn more about monetary policy: brainly.com/question/13926715
Learn more about expansionary and contractionary monetary policies:
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Answer:
The correct option is B
Explanation:
Expansionary fiscal policy is the kind of the policy of fiscal which involves increasing the government expenditures, decreasing the taxes or both so that could fight the recessionary pressures.
So, the example, of the policy could be that extend the period in which the workers who are unemployed could collect the benefits of the unemployment.
Answer:
technically, atoms have an infinite amount of levels of energy, but there are most likely 7 most known levels of atoms. All levels may contain electrons.
Explanation:
Answer:
Option B, positively skewed, is the right answer.
Explanation:
A positive-skewed distribution generally has a long right or positive tail. The positive-skew distributions are also known as the Right-skewed distribution. The main reason behind calling this a positive-skew is that this skew has a long tail in the positive direction on the number line.
In the given question, positively-skewed implies to one-year return risk-neutral distribution, as the delta put raises, the volatility decreases but not in the same proportion. In such a condition, the median will be less than the mean. Therefore, it will be Right-Skewed or Positively Skewed Distribution.