Answer:
The Fed can increase the monetary base using one of these two tools:
- Open-market operations: if the Fed wants to increase the money supply, it can buy government bonds. The money the Fed prints to buy these bonds increase the monetary base.
- Reserve requirements: the Fed can increase the reserve-deposit ratio for commercial banks. In other words, commercial banks will have to keep more reserves as a percentage of the deposits they hold, and this increases the monetary base.
Answer:
Assurance of future profits
Explanation:
Budgeting refers to estimating a future cost or revenue as on today so as to reduce business uncertainty and achieve planned goals. For example, budgeted costs reveal the estimated costs that would be incurred in the near future.
Budgeting is based upon past figures and current trends so as to estimate the future prospects of an activity under consideration. Such an activity reveals the course of action and aids better planning for the future.
For instance, a cash budget reveals the cash surplus or defict which shall arise in the near future and such a budget draws a firm's attention towards the funds it will require in the near future and from what sources those can be raised.
Since budgeting is an estimate and cannot account for unforeseen business events whose indications did not exist at the time of preparing such budgets, it's results cannot guarantee or assure future profits to a business. It's purpose is to reduce uncertainity, it cannot altogether eliminate uncertainity.
Given a set of vectors, you can determine if they are linearly independent by writing the vectors as the columns of the matrix A, and solving Ax = 0. If there are any non-zero solutions, then the vectors are linearly dependent. If the only solution is x = 0, then they are linearly independent.
I would say 5, 4, and 1 would be the right answers.
