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
It is possible to use a decision making process for any decision.
loris [4]
I think so, but there may be some exceptions--if any.
6 0
3 years ago
Read 2 more answers
On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,687; Accounts Receivable,
Agata [3.3K]

Answer:

The amount of stockholders' equity as of July 1 of the current year is $39,994

Explanation:

In John Wong, DVM, on July 1 of the current year:

Total asset = Cash + Accounts Receivable + Supplies + Land = $10,687 + $8,307 + $1,853 + $24,857 = $45,704

Liabilities = Accounts Payable = $5,710

Basing on accounting equation:

Total asset = Liabilities + Stockholders' Equity

Stockholders' Equity  = Total asset - Liabilities = $45,704 - $5,710 = $39,994

7 0
3 years ago
Which of the following costs is often important in decision making, but is omitted from conventional accounting records? A. Fixe
-Dominant- [34]

The correct option is B - Opportunity Cost

<u>Explanation:</u>

Generally, an opportunity cost is the benefit that you gave up when you pass on that option in favor of another option. For instance, by choosing to purchase furniture instead of taking a vacation comes at the cost of not experiencing the relaxation and fun associated with a vacation. All options have opportunity costs (getting married instead of staying single, investing in school instead of retirement, etc).

Everyone should know that opportunity cost is a very important concept that doesn’t just have its application in economics; you can apply it to all aspects of your daily life. Whether you’re cooking, eating, playing soccer, going to the movies, or hitting the gym, so long as you’re breathing, evaluating the choices you’re presented with is an inevitability, whether conscious of it or not.

8 0
3 years ago
A _______ lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of
Sveta_85 [38]

A step lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of the agreement.

4 0
3 years ago
Read 2 more answers
Here are the comparative income statements of Ayayai Corp..
Georgia [21]

Answer:

Ayayai Corp.

Horizontal Analysis:

                                          2020            Increase                 2019

Net sales                     $632,600  $110,700    21.2%     $521,900

Cost of goods sold       463,600     53,200    13.0%        410,400

Gross Profit                   169,000     57,500    51.6%          111,500

Operating expenses      79,300      32,100   68.0%          47,200

Net income                 $ 89,700     25,400   39.5%        $64,300

Explanation:

a) Data and Calculations:

AYAYAI CORP.

Comparative Income Statement For the Years Ended December 31

                                          2020             2019

Net sales                     $632,600     $521,900

Cost of goods sold       463,600        410,400

Gross Profit                   169,000          111,500

Operating expenses      79,300         47,200

Net income                 $ 89,700       $64,300

Percentage increase or decrease = (Increase/Decrease)/Base Year's Value

3 0
3 years ago
Other questions:
  • What are some reasons why individuals might choose to not raise children in their lifetime? these may include personal reasons a
    7·1 answer
  • World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company
    14·1 answer
  • what are the building blocks of a personality select all that apply A. emotional qualities B, ethnic identity
    11·1 answer
  • The Motorola team that developed the Razr cell phone was a good working team because they agreed on the objectives at hand and o
    7·2 answers
  • Consider the following information about a simple country that produces two different goods: Year PriceMilk QuantityMilk Price C
    11·1 answer
  • Tempest Co. purchased 60, 6% Ulrich Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1. If
    10·1 answer
  • Explain if you believe all businesses should have the same promotional strategies.
    12·1 answer
  • Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin
    12·1 answer
  • On January 1, 2021, Pine Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Pin
    15·1 answer
  • Why do you think business provide bonus to its employees?​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!