1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sloan [31]
3 years ago
10

The Federal Reserve can: A. simultaneously set any money supply and any nominal interest rate target. B. set the target money su

pply and target nominal interest rate independently. C. only set a money supply target that is consistent with the target nominal interest rate. D. only target the money supply, not the nominal interest rate.
Business
1 answer:
adell [148]3 years ago
4 0

Answer:

The answer is C.

Explanation:

The Federal Reserve acts as the Central Bank. And the tool it uses to control the economy is monetary policy and its tools are:

1. Reserve requirements

2. Open market operation

3. Discount rate(interest rate)

The Federal reserve can control the money supply in the eco economy through any of these tools.

For example, if Federal reserve wants to increase the money supply, they can do the following:

a) reducing the interest rate it lends commercial banks money, commercial banks too reduces the interest it charges businesses or households. With lower interest, households and businesses are encouraged to borrow, thereby increasing the money supply and vice-versa.

b) lowering the reserve requirements. Reserve requirement is the minimum balance commercial banks must have with the federal reserves. This is guided by law. Lowering the reserve requirements enable commercial banks to have more money to lend to their customers and vice-versa.

In all, Federal reserve use any of these tools to control money supply that is consistent with their target nominal interest rate.

You might be interested in
During its Drive to End Hunger campaign to help fight hunger among nearly nine million older Americans, Quaker State donated 25
sattari [20]

Answer:

Cause marketing.

Explanation:

Cause Marketing is a marketing partnership between a nonprofitand for-profit organization where each partyreceives benefit toward their individualmarketing objectives, while striving to create agreater good through their combined resources.

In most cases, the nonprofit organization seeksfunding, greater public awareness andexpansion of their services & programs; the for-profit business usually seeks increased brandrecognition, enhanced public relations value andgreater sales generation.

6 0
4 years ago
If you have an account with 31.99% APR, what is the periodic interest rate for February, June,
Ainat [17]

Answer: 2.67%

Explanation:

Periodic interest rate refers to the Annual Percentage Rate (APR) converted to the periods in question. It is calculated by dividing the APR by the number of periods it is to be converted to.

If for instance a monthly periodic rate is needed, divide APR by 12 as there are 12 months in a year.

If it is a daily periodic rate needed, divide the APR by 365 as that is the number of days in a year.

This question is asking for a monthly periodic interest rate:

= 31.99% / 12

= 0.026658

= 2.67%

7 0
3 years ago
Which one of the following correctly describes the dividend yield? Multiple Choice Next year's annual dividend divided by today'
Debora [2.8K]

Answer:

Next year's annual dividend divided by today's stock price

Explanation:

Dividend yield is a financial ratio which is used by investors to assess a company's annual dividend payout in comparison of its stock price. The formula for dividend yield ratio is :

Annual dividend / Stock price

The annual dividend used is the most recent dividend paid or is to be paid to shareholders of the company. It enables investors to assess the return on their investment in each stock price. Dividend yield increases when companies pay more dividends. It is a good signaling effect for shareholders.

4 0
4 years ago
List at least three of your financial goals. explain whether they are short-term, intermediate, or long-term. (1-3 sentences. 3.
hjlf
Three of my financial goal is to save up 20% of my salary in the bank per month. This is a short term goal because the time frame is only after every month. 
Then, save up money to start a business is somehow a long-term goal already since there are a lot of things to get through before finally reaching that goal.
Lastly, save up money for retirement. To be able to have a peaceful retirement life, one should prepare for it by not spending too much while still earning. This, of course, is a long-term goal. 
5 0
3 years ago
After a foreclosure of an fha insured loan, the lender will receive compensation in the form of?
Nostrana [21]

Lenders who foreclose on FHA-insured loans are compensated with the outstanding sum plus expenses.

<h3>What is a loan with FHA insurance?</h3>

An FHA-approved lender offers a mortgage loan that is guaranteed by mortgage insurance from the US Federal Housing Administration. Lenders are safeguarded from losses through FHA mortgage insurance. A government-backed mortgage that is insured by the Federal Housing

Administration is known as an FHA loan. FHA home loans are particularly well-liked by first-time homeowners since they have lower minimum credit score requirements and down payments than many conventional loans. Lenders are safeguarded from losses through FHA mortgage insurance.

If a property owner defaults on their mortgage, we'll pay a claim to the lender for the unpaid principal sum. Lenders are able to provide more mortgages to homebuyers because they are taking on less risk.

To learn more about FHA-insured loan, refer to:

brainly.com/question/24168197

#SPJ4

6 0
2 years ago
Other questions:
  • Match the task with professionals who would complete them
    9·1 answer
  • "when learning about how organizational buyers​ buy, what marketing management activity is taking​ place?"
    10·1 answer
  • The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock today. The dividends will grow at a con
    9·1 answer
  • A bond indenture is which of the following? Dividend Legal document Contract between two corporations A type of municipal bond
    12·1 answer
  • In one month, Moira can knit 2 sweaters or 4 scarves. In one month, Tori can knit 1 sweater or 3 scarves. Together, they could p
    11·1 answer
  • For February, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $96,000, advertising e
    10·1 answer
  • Bruno's Lunch Counter is expanding and expects operating cash flows of $26,100 a year for 4 years as a result. This expansion re
    7·1 answer
  • Your child is planning attend summer camp for 3 months, starting 12 months from now. The cost for camp is $2,676 per month, each
    12·1 answer
  • Assume Italy and Chad can both produce grain and dates, and that the only limited resource is the farming labor force, meaning t
    13·1 answer
  • After listening to both Caroline's forceful opinion and the CEO's advice about Rock Luster, what is the best plan of action movi
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!