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deff fn [24]
3 years ago
5

Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on

excess reserves rate from 1% to 0.5% has no effect on the federal funds rate. has an indeterminate effect on the federal funds rate. lowers the federal funds rate. raises the federal funds rate.
Business
1 answer:
Rudiy273 years ago
4 0

Answer: lowers the federal funds rate.

Explanation:

The federal funds rate is the rate at which banks lend money to their selves overnight to ensure that they meet lending and reserve requirements.

The interest rate paid on excess reserves rate is the amount of interest that the Fed pays banks to keep excess reserves. If this rate was to decrease, banks would have less incentive to keep excess reserves at the Fed and so would have more money to meet lending and reserve requirements such that they won't need to borrow from other banks as much which would then lead to the federal funds rate decreasing due to less demand.

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Assume that the current price of a stock is $100. A call option on that stock with an exercise price of $97 costs $7. A call opt
Aleksandr [31]

Answer:

-2

Explanation:

6 0
3 years ago
g Suppose the banking system has $100,000 in outstanding deposits and actual reserves of $50,000. Using the simple money multipl
Mekhanik [1.2K]

Answer: $25,000

Explanation:

The Money Multiplier allows us to calculate how much money banks can create in an economic given a certain reserve ratio.

The formula is;

Money Multiplier = 1 /reserve ratio

= 1/ 0.4

= 2.5

The reserve ratio is 40% which means the bank should be holding 40% of deposits as reserves.

= 100,000 * 40%

= $40,000

Yet they are holding $50,000. They are holding $10,000 more than required. Should they release that $10,000 then they will create;

= 10,000 * money Multiplier

= 10,000 * 2.5

= $25,000

5 0
3 years ago
Retailing is composed of all of the business activities that add value to the products and services customers buy. This includes
ivolga24 [154]

Answer: Finance, purchasing, accounting, suppying

Explanation:

Retailing is known as a sub middleman in business that buys from the wholesaler and sells to the consumer in smaller quantity not as big as the wholesaler.

The following are activities of the retailer, although it might not be all followed by many retailers but depending on their ability and understanding

-Finance

-Purchasing

-Accounting

-Management Information System

-Supply management including warehouse and distribution management.

3 0
3 years ago
Environmental scanning is the act of analyzing the critical external contingencies and trends facing an organization in terms of
alekssr [168]

Answer:

The correct answer is the option B: economic conditions, competitors and customers.

Explanation:

To begin with, the term of <em>environmental scanning</em> refers to the action of analyzing the forces, both internal and external, whose actions affect the organization in its whole and may give the company opportunities or threats, sthrengths or weaknesses. Moreover, when refering to the external part of the analysis the most important groups to have in mind are those outside the organization and that it may not take control over decisions directly. Those items or groups are: <u>the competitors, the customers, economic conditions</u>, the government, market suppliers, intermediaries and more.

5 0
4 years ago
Which of the following are elements you should include in meeting minutes? Check all that apply.
GREYUIT [131]

Answer:

The correct answer are A and D.

Explanation:

Meeting minutes is the one which involve the name of the group, time as well as date and the place of the meeting, names of the absentees and attendees, record and reports of old business as well as new business, approval of previous minutes, the precious wording of motions which comprise of action taken and vote and the person signature and name.

6 0
4 years ago
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