If the fed buys $1 million in government securities from bank a, then the immediate effect of this transaction is an increase in Bank A's excess reserves
The word bank has many meanings. Apart from things related to money such as savings banks and piggy banks, banks are also grass and dirt slopes such as riverbanks.
Banks, institutions that trade money and its substitutes and provide other money-related services. In their function as financial intermediaries, banks accept deposits and authorize loans.
Steal the key. A bank is a financial institution authorized to accept deposits and make loans. There are different types of banks such as retail banks, commercial banks, and investment banks. In most countries, banks are regulated by central governments or central banks.
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A couple of ways that business can use to get the informaiton are:
- By collecting Customer relation Management Data
This data is useful to know the satisfaction level of the customer and their tendency to return and repeat the purchase
- By observing the inventory
This includes observing the rate of inventory turnover to create a pattern that might be repeated for the following year.
If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.
<h3>What is
budget deficit?</h3>
When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.
Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.
The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.
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Answer:
$(18,900)
Explanation:
Calculation to determine what the elimination of the West Division would result in an overall company net operating income (loss)
Using this formula
Net operating income (loss) = Net operating income of East division -Allocated common cost to West division
Let plug in the formula
Net operating income (loss)= $ 89,600 - $108,500
Net operating income (loss)= $(18,900)
Therefore the elimination of the West Division would result in an overall company net operating income (loss) of $(18,900)
