I will recommend a contraction of the money supply by increasing the revenue ratio or discount rate or selling bond.
I will also recommend a contraction of the money supply which would reduce the lending ability of the banking system, increase the real interest rate and reduce investment spending, aggregate demand and inflation.
<h2>Further Explanation</h2>
Supposing I am a member of the board of governors and the economy is experiencing a sharp rise in the inflation rate, I will suggest to other members and recommend a contraction of the money supply by increasing the discount rate.
The discount rate refers to an interest rate that is charged when commercial banks borrow money from the Federal Reserve System.
Also, it is required of all banks in the United States to set aside a particular percentage of their deposits in reserve.
The Federal Reserve System was created in 1913 and it is the central bank of the United States. The structure of the Federal Reserve System is made of the Board of governors and 12 Federal Reserve banks
Some of the core functions of the Federal Reserve board include
- They regulate the money supply with monetary policy
- They control the affairs of the financial institutions
- They control the checking clearing procedures in both regional and national.
Learn more about the federal reserve system at:
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Answer:
C. $3,685
Explanation:
Total dividends paid in first 4 years
= $2,410 + $0 + $1,570 + $1,060
= $5,040
Retained Earnings ending balance is the net of the total income earned over the years less the total dividend paid through the years.
Retained Earnings ending balance = Total income - total dividend paid
$9,700 = Total income - $5,040
Total Income = $9,700 + $5,040
= $14,740
Average annual amount of net income (loss) over the first four years for Aikman
= $14,740/4
= $3,685
Option C.
Answer:
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
Explanation:
In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:
Accrued Benefits= Health Insurance Cost+ (Gross Salary × Percentage Contributable)
Accrued Benefits=$15,400+($154,000×4%)
Accrued Benefits=$15,400+$6,160
Accrued Benefits=$21,560
The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560
Answer:
The amount of the promissory note plus the interest earned on the due date is called the maturity value.
Explanation:
Maturity value is the amount that has to be paid to an investor at the end of the debt's intrument period. The amount to be paid includes the interest earned during the period of the investment and the amount of money invested.
