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3 years ago

If the Federal Reserve lowers the target federal funds rate,

Business

1 answer:

Anon25 [30]3 years ago

7 0

Answer:

a. liquidity in the banking system is increased

Explanation:

Federal fund rate is the rate of interest where a depository institution lends the money that is maintained at the federal reserve for other depository institution. It would be applied to the creditworthy institution who is very creditworthy for the loans i.e. overnight

Now in the case when the federal reserve reduce the fund rate of target federal so the possibility of borrowing would be cheaper that rise the liquidity

Hence, the option a is correct

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kondor19780726 [428]

Answer:

Nicole has profit $400 ....,.............

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3 years ago

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A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol

ankoles [38]

Answer:

Correct option is A

“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option

Explanation

It is a curve which shows various combination for the amount of two goods among which they can be produced with in the given available resources. Thus, it shows that the maximum amount of output is produced with the help of given resource.

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4 years ago

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Service industry, job costing, law firm. Kidman & Associates is a law firm specializing in labor relations and employee-rela

evablogger [386]

Answer:

Explanation:

Budgeted direct cost rate= budgeted direct cost/professional labor hours available =97500/1500=$65 per labor hour

Budgeted indirect cost rate= Budgeted indirect cost/ professional labor hours = 2475000/45000= $55

Job R:

Direct cost:

Job R - 120H*65=7800

Add: Indirect cost:

120H* 55=6600

TOTAL R JOB=14400

Job P:

DC:

Job P - 160H*65=10400

IC:

160H*55=8800

TOTAL P JOB=19200

8 0

3 years ago

When a customer chooses to accept an item of value from a business because it requires no incremental spending on the part of th

iVinArrow [24]

Answer:

The correct answer is letter "B": rational people think at the margin.

Explanation:

The "rational people think at the margin" principle means that consumers consider the marginal benefits and costs of acquiring a good or service before the purchase is made. Purchases typically take place when the marginal benefit is higher than the marginal cost.

7 0

4 years ago

What return do you expect earn if you buy the 3 years ,10% coupon bond today and sell it in exactly 1 year( if current price is

IrinaK [193]

Answer:

8.02%

Explanation:

Since corporate bonds pay coupons semiannually, it would be important to first all determine the semiannual yield to maturity of this bond using a financial calculator as shown below:

We need to set the calculator to its end mode before making the following inputs:

N=6(number of semiannual coupons in 3 years=3*2=6)

PMT=50(semiannual coupon=face value*coupon rate/2=1000*10%/2=50)

PV=-1051.45 (current price)

FV=1000(bond's face value)

CPT

I/Y=4.02%

After one year, there would 4 semiannual coupons left, we can compute the bond price as shown thus:

N=4

PMT=50

I/Y=4.02(without % sign)

FV=1000

CPT

PV=1,035.56

The expected rate of return over one year is computed thus:

N=2(number of semiannual coupons in 1 year holding period)

PMT=50(the amount of each semiannual coupon)

PV= -1051.45

FV=1,035.56(selling price after one year)

CPT=4.01%(on a semiannual basis)

annual rate of return=4.01%*2=8.02%

7 0

3 years ago