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Fittoniya [83]
2 years ago
6

If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve Group of answer choices crea

tes dollars and uses them to purchase government bonds from the public. sells government bonds from its portfolio to the public. creates dollars and uses them to purchase various types of stocks and bonds from the public. sells various types of stocks and bonds from its portfolio to the public. Flag question: Question 13
Business
1 answer:
Westkost [7]2 years ago
4 0

Answer:

creates dollars and uses them to purchase various types of stocks and bonds from the public.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve creates dollars and uses them to purchase various types of stocks and bonds from the public.

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Which of the following is an example of an accrual? A : Record Revenues that were received in cash in an earlier period. B : Rec
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Answer: B. Record revenue that will be received in cash in a subsequent period.

Explanation: Accrual Accounting is a method that records transactions when they have inccured. Instead of when the cash is exchanged.

A. Incorrect. Impossible to record in earlier periods. As the past financial statements from previous years have already been closed off.

B. Correct. Accrued accounting entails recording the transaction when it has occurred. So the cash will be recorded as received. However the cash will only be transferred to the revenue account when the obligation has been met. Therefore it will only be transferred to revenue in the period that it applies to.

C. Incorrect. This is already general expense and general accounting rules apply. I.e. The expense is incurred in the same year and paid out in the same year. This is how most income and expenses are treated, except for prepaid and accrual income and expenses.

D. Incorrect. This is an example of a prepaid expense. Prepaid expenses are expenses that have already been paid even though they haven't been inccured yet. This is an asset, and is thus recorded on the debit side.

8 0
3 years ago
Definition of unemployment insurance fund
Veronika [31]
Salutations!
Definition of unemployment insurance fund.

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7 0
3 years ago
In a contract, what is consideration? A. Exchanging things of value B. Breaching the contract C. A business tort D. The minimum
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Exchanging things of value is what consideration is in a contract.
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3 years ago
The Hill Company reported the following results:
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Find the attachments for complete answer

8 0
3 years ago
You buy a stock for which you expect to receive an annual dividend of $2.10 for the fifteen years that you plan on holding it. a
kap26 [50]
<span>You are given an annual dividend of $2.10 for the fifteen years that you plan on holding it. Also, after 15 years, you are given to sell the stock for $32.25. You are asked to find the present value of a share for this company if you want a 10% return. You have to mind that the future stock for 15 years is $32.25. You are not only going to mind the present value of the annuity at $2.10 but also the $32.25.

With the interest of r = 10% and number of years of n = 15, we get
PVIFA = 7.6061.

For annuity we have,
$2.10 * 7.60608 = $15.973

For $32.35 with r = 10% and n = 15
PVIF = 0.239392

Thus for the present value of selling price,
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Thus the present value of the share
P = $15.973 + $7.720
P = $23.693
</span>
6 0
3 years ago
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