Answer:
The Central Bank is trying to increase money supply.
Explanation:
When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.
It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.
In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.
In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.
Cheers!
The net income of the firm is $1,200
<h3>What is net income?</h3>
Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.
Net profit is also amount of money a business earns after deducting all operating, interest, and tax expenses over a given period of time.
First, we know that:
Return on equity
= Net income / Total equity
Fixing the given values, we'll have
20% = Net income / $6,000
Net income = $6,000 * 20%
Net income = $1,200
Therefore, net income of the firm is $1,200
Learn more about computation of net income here: brainly.com/question/24836146
Answer:
d. All of these answers are correct.
Explanation:
A market economy is where production decisions are made by the forces of demand and supply. Means of production are privately owned .
The government intervenes in a market economy for all the above stated reasons.
I hope my answer helps you.
Answer:
The standard deviation of 75 dollars
Explanation:
Standard deviation, S.D.= 75 dollars; Mean, M= 225 dollars; Mean deviation, D= ?
S.D. = √ D² - M
∴ 75 = √ D² - 225
D² = 75² - 225 = 5625 + 225 = 5950
∴ D = √5950 = 24.4 dollars
From the above, it shows that, the standard deviation of 75 dollars contains the middle 95 percent of hourly sales.
Answer:
Non Banking Institutions (Investment Bank)
Explanation:
Non Banking Institutions (Investment Bank) do not have a full banking licence and are not usually supervised by a national or international banking regulatory agency.
NBIs facilitate investment, market brokerage, contractual savings and risk pooling.
Non Bank Institutions provide avenues for transforming an economy's savings to capital investment.
One way they do this is by underwriting new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets.
