Answer:
d. sold bonds to decrease banks reserves.
Explanation:
The Fed uses contractionary Open market operations to contain runaway inflation. The Fed sells bonds and securities to the banks to reduce the amount of money available for credit in the economy. The bank will use funds that should be loaned out to purchase government bonds, thereby denying individuals and firms a chance to borrow from the banks.
If the Fed wants to reduce the money supply in the economy, it issues out bonds and security at attractive interest rates. The banks will opt to invest with the government, which is risk-free rather than loan out to households and firms. By selling bonds and securities, the Fed mops out all the excess money in the economy.
Globalisation is the growing interconnectivity of the world through the use of trade, travel and media.
Answer:
a. Bonds payable Liability account
b. Equipment Asset account
c. Accounts payable Liability account
d. Salaries payable Liability account
e. Common stock Equity account
f. Retained earnings Equity account
g. Cash Asset account
h. Accounts receivable Asset account
i. Sales revenue Equity account
j. Inventory Asset account
Explanation:
All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.
All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.
Answer:
The correct answer is that the price of the product will decrease in order to meet the equilibrium
Explanation:
Equilibrium point is the point where the quantity supplied is equal to the quantity demanded. And the equilibrium price as well as the quantity is evaluated through the intersection of the demand the supply.
When the quantity which is supplied is greater or more than the quantity demanded, it will create a situation of surplus. And if the product price is decreased or lowered down, then the quantity demanded of the product will increase or rise until it reached to equilibrium. In short, the surplus drives the price down.
Answer:
The correct statement regarding the transfer of financial assets such as receivables:
b. II only.
Explanation:
The transfer is not regarded as payment for the debt. Therefore, a liability is recorded for the amount borrowed while the financial asset remains in the records of the transferor until the final settlement. Appropriate disclosures are made in the transferor's financial statements about the security on the financial assets.
