Answer:
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.
Explanation:
A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.
Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.
The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.
Answer:
PAYBACK PERIOD
Year Cashflow Cummulative cashflow
$ $
0 (16,000) (16,000)
1 8,000 (8,000)
2 6,000 (2,000)
3 5,000 3000
4 6,000
5 5,000
Payback period
= 2 years + 2,000/5,000
= 2.4 years
Explanation:
In this case, we need to deduct the initial outlay from the cashflows for each year until the initial outlay is fully recovered.
<u>The pay structure </u>should support the organization strategy, support the workflow and motivate behavior toward organization objectives.
<h3>
What do you mean by organization strategy?</h3>
An organization strategy is defined as the strategy that include long -term as well as the short-term plans based on how the organization use its resource to support activities and growth.
Furthermore, the pay-structure of every company can helpfully define the organization strategy, support the workflow in the company. Based upon pay structure, the promoters of organizations make a decision regarding the how to motivate the employees for better earnings.
Adding to it, organizational strategy establishing the priorities and setting the direction for our business. It clarifies the path of success and also set the prioritizes that are needed.
Learn more about Pay structure, refer to the link:
brainly.com/question/16006633
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Open Market Operation is the system in which the Central Bank supply money to the private banks.
Explanation:
The Reserve bank buy as well as sale the government securities so that it can control money supply. By selling and buying securities in a free market the amount of money is either expanded or contracted.
During inflation the price of the product rises , at that time the Reserve Bank purchase the securities so that money is not spend but in the other hand during deflation there is fall in the price as a result the Reserve Bank sale the securities so that purchase can be done.
A bank belonging to the Federal Reserve System is a <span>member bank<span>.</span></span>
Hope this helps!
