All categories

3 years ago

If the fed conducts open-market sales, the money supply

1 answer:

6 0

When the Fed buys government bond from a bank, then, bank will acquires money which it can lend out, thus, leading to an increase to money supply.

The open market operations entails the purchase and sales of government bonds by the Federal Reserve (Fed).

When Fed purchases government securities on open market,, this increases the reserves of commercial banks, increases the price of government securities, reduces overall interest rates etc.

Therefore, when the Fed buys the government bond from a bank, then, the bank will acquires money which it can lend out, thus, leading to an increase to money supply.

Read more about this here

brainly.com/question/2302861

You might be interested in

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Depar

liq [111]

Answer:

Equivalent units of materials, labor, and overhead

Materials

Units in Ending Work in Progress (2,600 × 80%) = 2,080

Labor

Units in Ending Work in Progress (2,600 × 60%) = 1,560

Overhead

Units in Ending Work in Progress (2,600 × 60%) = 1,560

Cost of ending work in process inventory for materials, labor, overhead

Materials

Cost = Equivalent units × unit cost

= 2,080 × $ 13.70

= $28,496

Labor

Cost = Equivalent units × unit cost

= 1,560 × $4.70

= $7,332

Overheads

Cost = Equivalent units × unit cost

= 1,560 × $ 7.40

= $11,544

Cost of the units transferred to the next department

Materials = $28,496

Labour = $7,332

Overheads = $11,544

Total = $47,372

Cost reconciliation for January

INPUTS

Beginning Cost + Cost Added $720,752

Total $720,752

OUTPUT

Ending Work in Process $47,372

Completed and Transferred ( 26,100 × 25.80) $673,380

Total $720,752

3 0

3 years ago

If a country's economic data shows private savings of $990 million, government spending of $999 million, tax revenue of $699 mil

balandron [24]

Answer:

Investment is equal to 890 million.

Explanation:

Investment refers to the money that is used to produce goods. Investment can be calculated by adding the private savings, the public savings that is determined by subtracting the government spending to the taxes received and the trade deficit that refers to the imports minus the exports.

I= S+(T-G)+(M-X)

S= private savings

T= net taxes

G= government spending

M= imports

X= exports

I= 990+(699-999)+(600-400)

I=990-300+200

I= 890

4 0

3 years ago

Jessica completed a four-year degree program in Finance and Accounting. She hasn’t yet gained any work experience in this field.

Mademuasel [1]

number five might be the answer

6 0

3 years ago

Read 2 more answers

What is "risk" and how can people reduce it through "risk shifting"?

lapo4ka [179]

Risk is the possibility of not getting expected result of something.
Risk shifting is one way of reducing risk. Best example for risk shifting is 'Insurance'. In this, risk is shifted to an another party like insurance company. After shifting risk to another party, if the shifted risk happened other party will gain that loss and you can claim the loss that happened because of the risk from other party. So if you have shifted your risk then you don't have to be afraid of getting that risk. Because another party is taking that risk for you but for a cost.

3 0

3 years ago

Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow

nevsk [136]

Answer:

The answer is $2.44 millions option (a) is correct

Explanation:

Solution

Recall that:

Weighted average cost of capital =10.25%

The value of operations = $57.50 million

Constant rate = 6.00%

Now we have to find the expected year-end free cash flow.

Thus

The value of operations = $57.50 million

WACC =10.25%

Growth rate = 6.00%

The value of operation = free cash flow/( WACC-growth rate )

$57.50 = free cash flow / 0.1025-0.06

$ 57.50 = free cash flow/0.425

Free cash flow = $ 57.50*0.0425

= $2.44 millions

Hence the expected ear-end free cash flow is $2.44 millions

3 0

3 years ago