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laiz [17]
3 years ago
10

If the M1 multiplier is 3 and the Fed engages in open-market purchases in the amount of $3 billion, then monetary base will Grou

p of answer choices increase by $3 billion. decline by $9 billion. decline by $3 billion. increase by $9 billion.
Business
1 answer:
zavuch27 [327]3 years ago
7 0

Answer:

A

Explanation:

By definition, open-market operations change the monetary base.

In this exercise, the Fed engages in open-market purchases, which means that the Fed expands the amount of money in the banking system. Therefore the monetary base will increase by an amount equal to the amount of open-market purchases.

So monetary base will increase by $3 billion.

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Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and th
liq [111]

Answer:

c) 11%

Explanation:

The question is to determine the rate of return on Groupong Inc's

The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.

The rate of return in this question is calculated as follows:

Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate

The dividend for the next year = current year dividend x (1+r), where r is 3.5

= 2.78 x (1+0.035)

=2.78 x 1.035

= (2.8773/38.3) + 0.035

=0.1101 or 11%

5 0
3 years ago
Margie has had a tough month.​ First, she had dental work that cost ​$700. ​Next, she had her car transmission​ rebuilt, which c
motikmotik

Answer:

Calculate amount of annual interest:

The simple interest rate is the percentage of the credit that should be paid as interest on yearly basis. The amount of interest should be paid per year on a loan.

Miss. Margie has spent $700 for dental work and $1,400 for car transmission rebuilt. She has made both transactions on her credit card. If she does not pay credit balance of $2100, she will be charged 21 percent interest.

Calculate the annualized interest expenses.  

Miss. Margie should pay annual interest if she does not pay off credit card balance. She has a credit balance of $2100. The interest rate on credit balance is 21 percent.

Annual Interest = Amount owned x Interest rate

Annual Interest = 2,100 x 0.21  

Annual Interest = 441

Annual interest on credit card balance is $441

Money market investment is a high-liquid, and short term securities containing commercial paper. Treasury bill, banker's acceptance, promissory note.

Calculate the amount of interest received on money market investment. Miss. Margin has a money market account with $15.000. On this account she receives 3 percent interest.

So, the total interest earned on a money market account is:

Annual Interest = Amount x Interest rate

Annual Interest = 15,000 x 0.03

Annual Interest = $450

Miss. Margin has got $450 as annual interest on money market account of $15000 with the interest rate of 3 percent.

To calculate the amount of annual interest, she should write a check of 2,100 for pay off credit card balance, a money market account shows the balance of 12,900. The interest rate is 3 percent.

Annual interest = Amount x interest rate

Annual interest = 12,900 x 0.03

Annual interest = $387

If she should write the check out of her money market account she gets interest of $387.

So, she will lose the interest of $63

Miss. Margin should write the check'. She is able to cover credit card bill from money market account. It is always better to payoff credit card bill in full from income or saving than to pay credit card balance with interest on due balance.

If she pays credit card due balance from money market account, she will not have to pay interest charges

8 0
3 years ago
Read 2 more answers
Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,800 shares of its own common stock
Yuki888 [10]

Explanation

I think your question missed of key information for question 2, so I just answer question at my best for helping you.

                                                                       Debit             Credit

11-Oct

Treasury                                                         292400

Cash                                                                                     292400

<em>Being own shares repurchased   </em>

1-Nov  

Cash (1,450 × 49)                                             71,050

Treasury Stock (1,450 × 43)                                                 62,350

Paid-in Capital from Sale of Treasury Stock                          9,700    

<em>To record the sale of treasury stock.      </em>         

November 25

Cash (5350 × 38)                                           203,300

Paid-in Capital from Sale of Treasury Stock   9,700

Retained Earnings                                            17,050                

Treasury Stock (5350 × 43)                                                      230,050

<em>To record the sale of the remaining treasury shares  </em>      

4 0
3 years ago
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KiRa [710]

Explanation:

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4 0
2 years ago
Read 2 more answers
_____ has been defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements
8_murik_8 [283]

Answer: Business process re-engineering

Explanation: In simple words, business process re-engineering refers to the process in which  an organisation tries to restructure and change the process or methods of operations for smooth functioning of the business.

  It is modern technique that are used by the firms in the industries which have high competition and are strongly interdependent on other firms in the industry.

5 0
3 years ago
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