Answer:
A) buys bonds from the public, which increases the money supply.
B) it should sell bonds, this would decrease money supply & achieve increase in interest rates
Explanation:
<u>Open Market Operations [OMO]</u> refers to purchase & sale of government securities (bonds) in open market.
- To <u>increase money supply </u>in Economy : Federal reserve <u>purchase </u>government securities in OMO, implies that cash liquidity against this purchase increases in hands of public. This increased liquid cash with public increase money supply in the economy.
- To <u>increase interest rate</u> in Economy: Federal markets <u>sale </u>of government securities in OMO, implies that cash liquidity against this sale decreases in hands of public. This decreased liquid cash, money supply leads to increase in interest rates.
Bonds have a maturity date, are perpetual, and pay a coupon rate.
Answer:
a)
Total relevant cost
unit level materials 7,500
unit level labor 8,250
unit level overhead 5,250
product level cost(13,500*1/3) 4,500
Total relevant cost 25,500
cost of buying (10,000*3)=
30,000
Should Omron continue to make the containers Yes
Answer:
d.
- Equipment $ 615,000
- Accumulated Depreciation $110,000
- Equipment $465,000
- Cash $40,000
Explanation:
IMPORTANT NOTE: The data of the calculation was obtained from an online research because you didn't post the complete exercise and questions.
