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nata0808 [166]
2 years ago
7

Which tool does the federal reserve use to control monetary policy through bank borrowing? discount rate money creation open-mar

ket operations reserve requirement
Business
1 answer:
Alina [70]2 years ago
8 0

The <em>federal reserve</em> use <u>open-market operations</u> tool to control monetary policy through<em> bank borrowing.</em>

<h3>What are open-market operations?</h3>

Open market operations tend to imply the process in which the Fed buys and sells securities of the government in the <u>financial market</u> or to <u>commercial banks. </u>

Therefore, the money supply stabilizes when Fed <em>sells securities</em> that <u>decrease</u> the borrowing capacity of the banks. Similarly, when Fed <em>purchases securities</em>, the banks' borrowing capacity increases which increase the <em>money supply. </em>

Learn more about Federal reserves here:

brainly.com/question/18451428

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When preparing a consolidated balance sheet, the noncontrolling interest amount is:
Margarita [4]

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Which of the following situations is the demand most likely to be reduced
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3 0
3 years ago
A buyer values a house at $525,000 and a seller values the same house at $485,000. If sales tax is 8% and is levied on the selle
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$523,800

Explanation:

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Selling price by seller = $485000

Sales tax = 8%

Unknown:

The lowest selling price by the seller = ?

Solution:

To solve this business problem, we must understand that the price the seller would be will to part with will be his selling price and the percentage of sales tax incurred in the procurement.

This will be the minimum and least profitable estimated amount the seller is willing to sell at.

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