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2 years ago

2.FED (Federal Reserve Bank). buys a $10,000 bond from bank. What is the potential impact on MS (Money Supply)

Business

1 answer:

oksano4ka [1.4K]2 years ago

6 0

Answer: Money Supply Increases

Explanation:

If the FED buys a $10,000 bond from a bank, it is increasing the money supply in the economy because the cash that it pays for the bond will go into the economy.

Buying bonds and securities from banks is one way the FED can embark on expansionary monetary supply policies that aim to inject money into the economy.

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A disadvantage of the free cash flow valuation method is A. The free cash flow method is not used widely in practice. B. The ter

SSSSS [86.1K]

The main disadvantage of the valuation method is that the terminal value tends to dominate the total value in many cases.

In a free cash flow valuation, the intrinsic value equals present value of its free cash flow and thus, the net cash flow is left over for distribution to stockholders and debt-holders in each period.

So, the disadvantage of the free cash flow valuation method is that the terminal value tends to dominate the total value in many cases.

Hence, the Option B is correct.

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2 years ago

Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year

GenaCL600 [577]

Answer:

Feb 1=> Cash ( debit) = 2,444,000.

Prefered stock (credit) = 2,350,000.

Paid in capital in excess of par value-preferred stock(credit) = 94000.

July 1=> Cash (debit) = 3,500,000.

Prefered stock (credit) = 3,125,000.

Paid in capital in excess of par value-preferred stock(credit) = 375000.

Explanation:

(A). On FEB. 1, the accounts and Explanation is given below:

Cash ( debit) = 2,444,000 {that is from; 47,000 × $52}.

Prefered stock (credit) = 2,350,000 { that is from; 47,000 × $50}.

Paid in capital in excess of par value-preferred stock(credit) = 2,444,000 - 2,350,000 = 94,000.

(B). On JULY 1, the accounts and Explanation is given below;

"July 1 Issued 62,500 shares for cash at $56 per share."

=> Cash (debit) = 62500 × 56 = 3,500,000.

Prefered stock (credit) = 3,125,000 { that is from; 62,500 × $50}.

Paid in capital in excess of par value-preferred stock(credit) = 3,500,000 - 3,125,000 = 375,000.

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2 years ago

Read 2 more answers

For a recent year, Best Buy reported sales of $42,410 million. Its gross profit was $9,690 million. What was the amount of Best

LiRa [457]

Answer:

The amount of Best Buy's cost of goods sold was $32,720 million

Explanation:

cost of goods sold = sales - gross profit

= $42,410 million - $9,690 million

= $32,720 million

Therefore, The amount of Best Buy's cost of goods sold was $32,720 million

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3 years ago

The following set of main points for a persuasive speech on a question of policy follows which pattern of organization? I. A car

snow_tiger [21]

Answer: comparative advantages

Explanation:

Comparative advantages order refers to a method of organizing persuasive speeches whereby the speaker gives points on how the solution to a particular problem is preferable than other solutions that are proposed l.

It is a way of structuring a persuasive speech when the audience knows that there's a challenge regarding a particular thing but wants to be convinced that a particular plan is the best solution when compared to other plans.

In this case, since the speaker is trying to tell the audience that carbon tax is a better solution than an emission trading system to the problem of industrial pollution, then this is referred to as comparative advantage order.

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2 years ago

Which overall message does this political cartoon convey? advertising on buses will raise money for schools. advertising on buse

Gennadij [26K]

The political cartoon referred to was by Jeff Parker, has been an editorial cartoonist for Florida Today since 1992. The overall message being conveyed by the referenced political cartoon is that advertising on school buses could have a negative affect on children.

Certain states in the U.S (e.g. New Jersey, Texas, Massachusetts among others) permit school districts to sell ad space on school buses in order to raise funds for school activities. Some have <span>argued that these ads unfairly target young, impressionable consumers, and as such should be stopped.</span>

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3 years ago

Read 2 more answers