Answer:
Explanation:
You invest $29,000 in a friend's business, he claims that this money that you invested will double in 7 years.
A = 29,000 (Starting balance)
C = 2A
Y = One year
C = 7Y
2(29,000) = 7Y
58000 = 7Y
-29,000 (because you initially invested this)
29,000 = 7Y
------------------
7
~4142.86 = Y
Every year that you invest in his business, he claims you will earn around $4142.
Hope that helps.
The Fed has conducted expansionary monetary policy to combat a recession but is running up against the zero lower bound, and the economy is still not recovering. What other steps could the government take to try to stabilize the economy
Answer: Employ various monetary policy tools in order to reduce unemployment rates and inflate prices.
Explanation:
The Fed would need to employ various monetary policy tools in order to reduce unemployment rates and inflate prices. The tools needed for this are open market asset purchases, reserve regulation, discount lending and forward guidance on how to manage market expectations.
how much will a firm receive in net funding from a firm commitment underwriting of 250000 shares priced to the public at 40 if a 10% underwriting spread has been added to the price paid by the underwriter. additionally the firm pays 600000 in legal fees
Answer: $8,490,909
Explanation:
10% was added to the $40. Price firm will receive is therefore;
= 40/ 1.10
= $36.36
The firm will receive;
= (Price * number of shares) - legal fees
= (36.36 * 250,000) - 600,000
= $8,490,909.09
= $8,490,909
Suppose that this year's money supply is $600 billion, nominal GDP is $15 trillion, and reel GDP is $3 trillion.
The price level is_______ and the velocity of money is__________
Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year. Use this information to answer the questions follow.
If the Fed keeps the money supply constant, the price level Will ________ , and nominal GDP Will___________
If the Fed wants to keep the price level stable instead, it should increase the money supply by 3% next year.
a. True
b. False
If the Fed wants an inflation rate of 11 percent instead, it should_________ the money supply by________
Answer:
1. Price level:
Nominal GDP = Price * Real GDP
15 trillion = Price * 3 trillion
Price = 15/3
Price = $5
Velocity:
Money supply * Velocity = Price level * Real GDP
0.6 trillion * Velocity = 5 * 3 trillion
Velocity = 15 trillion / 0.6
=25
_________________________________________________________
2. Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year:
If the Fed keeps the money supply constant, the price level will DECREASE BY 3% , and nominal GDP will REMAIN THE SAME.
Money supply constant:
% change in money supply + %change in velocity = %change in price + %change in real GDP
%change in price = % change in money supply + %change in velocity - %change in real GDP
= 0 + 0 - 3%
= -3%
3. If the Fed wants to keep the price level stable instead, it should increase the money supply by 3% next year. TRUE.
_________________________________________________________
Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year:
4. If the Fed wants an inflation rate of 11 percent instead, it should INCREASE the money supply by 14%.
Price level change = 11%
%change in price = % change in money supply + %change in velocity - %change in real GDP
11% = % change in money supply + 0% - 3%
% change in money supply = 11% + 3%
= 14%
The price level will be $5 and the velocity of money will be 25.
Based on the information given, the price level will be:
= Nominal GDP / Real GDP
= $15 trillion / $3 trillion
= $5
The velocity of money will be:
= (5 × 3 trillion) / 0.6 trillion
= 15 trillion / 0.6 trillion.
= 25
It should be noted that when the Fed keeps the money supply constant, then the price level will reduce by 3% and the nominal GDP will remain the same.
Therefore, if the Fed wants to keep the price level stable, it should increase the money supply by 3% next year.
If the Fed wants an inflation rate of 11 percent instead, it should increase the money supply by 14%. This was calculated as:
Change in money supply = 11% + 3% = 14%
Read related link on:
https://brainly.com/question/15832013
Choose an organization and identify an area in which it needs to communicate a change. What type of change agent and change model needs to be implemented
The correct answer to this open question is the following.
Choose an organization and identify an area in which it needs to communicate a change. The area that needs change is Human Resources of the main plastic fabric located in my community.
The type of change agent is one-on.one meeting managed by the Human Resources manager.
The change model that needs to be implemented would be the "John Kotter 8 step change model."
This interesting model invites managers to create a sense of urgency, get all the employees to believe in the change, to implement it successfully.
The model had to be established from the top of the organizational hierarchy so it can be valid and implemented from the top to the bottom of the organization. Top management is the first to set the example of the changes that should be implemented so employees can see that the "bosses" are the first ones to assume the role of change.
The Steel Factory is considering a project that will produce annual cash flows of $43,800, $40,200, $46,200, and $41,800 over the next four years, respectively. What is the internal rate of return if the initial cost of the project is $127,900
Answer: 13%
Explanation:
The Internal Rate of Return is the discount rate that brings the Net Present Value to zero.
One can use Excel to solve for this;
= IRR(-127900, 43800, 40200, 46200, 41800)
= 13%
Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries?
Answer:
Re = 10%
Explanation:
using the CAPM formula, the cost of equity is:
Re = risk free + (beta x market premium)
risk free = 4%market premium = market return - risk free = 12% - 4% = 8%beta = 0.75Re = 4% + ((0.75 x 8%) = 10%
Since the beta is lower than 1, this stock is less volatile than the market, that is why the required rate of return is lower than the market return.
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year:
Beginning Inventory Ending Inventory
Finished goods (units) 27,000 77,000
Raw material (grams) 57,000 47,000
Each unit of finished goods requires 3 grams of raw material. If the company plans to sell 140,000 units during the year, how much of the raw material should the company purchase during the year?
Answer:
560,000 grams should be purchased
Explanation:
production budget:
estimated sales = 140,000 units
planned ending inventory = 77,000
total production required = 217,000
- beginning inventory = (27,000)
units to be produced = 190,000
materials budget:
units to be produced = 190,000
materials per unit = 3
total direct materials needed = 570,000
+ desired ending inventory = 47,000
- beginning inventory = (57,000)
direct materials purchases = 560,000
Latiker, Inc., manufactures and sells two products: Product Y9 and Product W0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Y9 100 8 800
Product W0 100 10 1,000
Total direct labor-hours 1,800
The direct labor rate is $15.40 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials Cost per Unit
Product Y9 $253.00
Product W0 $278.80
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools Activity Measures Overhead Cost Product Y9 Product W0 Total
Labor-related DLHs $61,488 800 1,000 1,800
Machine setups setups 50,687 400 300 700
Order size MHs 155,754 5,000 5,200 10,200
$267,929
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
a. $31.15 per setup
b. $26.27 per setup
c. $29.95 per setup
d. $72.41 per setup
Answer: $72.41 per setups
Explanation:
The activity rate for the machine setups activity cost pool under activity-based costing would be calculated as the estimated overhead cost divided by the total expected activity. This will be:
= 50687/700
= $72.41 per setups
Therefore, the answer is $72.41 per setups.
Which of the following statements about transactional leaders and the chain of command is FALSE? The chain of command is based on formal authority and responsibility in the organization The leader is given authority based on their position in the chain of command Chain of command promotes employee dependence which decreases accountability Subordinates are expected to follow directions given by leaders above them in the chain of command
Answer:
Chain of command promotes employee dependence which decreases accountability
Explanation:
The above statement is false when it comes to transactional leaders and their chain of command. On the contrary, it promotes employee independence which only requires approval from their leaders for any major decision. This on the long run, increases accountability of the said process because, any given error could be easily be traced.
Out of the given options, the one that is false is that Chain of command promotes employee dependence which decreases accountability.
Facts about Transactional LeadershipThere is a chain of command based on formal authority. Duties are delegated to employees and are tracked for completion.Based on the fact that employees are given certain tasks and expected to complete them; and that these tasks are tracked for completion, we cannot say that employee dependence and lack of accountability are promoted.
In conclusion, option C is correct.
Find out more on transactional leadership at https://brainly.com/question/15292686.
With $5,100,000 Paul's will creates a trust with the following provisions: life estate to Jacob (Paul's son) and remainder to Anastasia (Paul's granddaughter and Jacob's daughter). Jacob dies when the value of the trust is $7,650,000.
Required:
When does the generation-skipping transfer result?
Answer:
The generation-skipping transfer results in the lifetime of Anastasia (Paul's granddaughter and Jacob's daughter).
Explanation:
a) Data:
Value of the Generation-skipping Trust created by Paul = $5,100,000
Value of the Generation-skipping Trust when Jacob dies = $7,650,000
b) Paul's generation-skipping trust (GST) is a type of legally binding trust agreement in which the contributed assets worth $5,100,000 in this instance are passed down to Paul's grandchildren and Jacob's children (Anastasia) when they are worth $7,650,000. This "skipping" skips the next generation, that is, Paul's children (Jacob).
Accounts payable $240,000 Common stock 780,000 Retained earnings 259,600 Total liabilities and stockholders' equity $1,279,600 Accounts payable at the end of December would be:
Answer:
$163,000
Explanation:
Account payable at the end of December is calculated as;
= Accounts payable - Accounts receivables (net of allowance for uncollectible accounts
Given that ;
Accounts payable = $240,000
Accounts receivables = $77,000
Accounts payable at the end of December = $240,000 - $77,000 = $163,000
A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years. Determine the following. (a) The depreciable cost $fill in the blank 1 (b) The straight-line rate fill in the blank 2 % (c) The annual straight-line depreciation
Answer:
(a) The depreciable cost
depreciable cost = purchase cost - salvage value = $1,450,000 - $300,000 = $1,150,000
(b) The straight-line rate
straight line depreciation rate = 100% / useful life = 100% / 10 years = 10% per year
(c) The annual straight-line depreciation
annual straight line depreciation expense = depreciable value x deprecation rate = $1,150,000 x 10% = $115,000
Near the end of 2020, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain. What should he do before the end of 2020
Answer:
Byron should sell stock at gain of ($13,000 - $3,000) $10,000
Explanation:
Given:
Net short-term capital loss = $13,000
Taxable income = $123,000
Computation:
Byron is single and Byron can be deduct $3,000 as capital loss.
Byron should sell stock at gain of ($13,000 - $3,000) $10,000
2.FED (Federal Reserve Bank). buys a $10,000 bond from bank. What is the potential impact on MS (Money Supply)
Answer: Money Supply Increases
Explanation:
If the FED buys a $10,000 bond from a bank, it is increasing the money supply in the economy because the cash that it pays for the bond will go into the economy.
Buying bonds and securities from banks is one way the FED can embark on expansionary monetary supply policies that aim to inject money into the economy.
The balance in Accounts Receivable at the beginning of the year amounted to $2,720. During the year, $9,120 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,760, and uncollectible accounts expense amounted to $740, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement
Answer:
$9340
Explanation:
The amount of cash received from customers to be shown under operating activities is computed using the below formula:
Cash from customers=credit sales+decrease in accounts receivable-uncollectible accounts expense
credit sales=$9,120
decrease in accounts receivable=$2,720-$1,760=$960
uncollectible accounts expense=$740
cash received from customers=$9,120+$960-$740
cash received from customers=$9340
Hickenlooper Company retired a $900,000, 7% bond issue at 98. If the unamortized discount is $7,200, the entry will include a:
a. Debit to loss on bond retirement for $7,200
b. Credit to gain on bond retirement for $7,200
c. Debit to loss on bond retirement for $10,800
d. Credit to gain on bond retirement for $10,800
Answer:
d.Credit to gain on bond retirement for $10,800
Explanation:
Based on the information given we were told that the Company retired the amount of $900,000 which includes 7% bond issue at 98 which means that If the unamortized discount is $7,200, the journal entry will include a:Credit to gain on bond retirement for $10,800 calculated as
Dr bond payable $900,000
Cr Gain on retirement $10,800
[($900,000-$882,000)-($7,200)]
Cr Discount on Bond $7,200
Cr Cash $882,000
(98%*9/$900,000)
The company retirement refers to the phase of the firm when the firm permanently chooses to leave the operation and functioning of the market.
The correct answer is d. Credit to gain on bond retirement for $10,800
The Company retired the amount of $900,000 which includes a 7% bond issue at 98 which means that If the unamortized discount is $7,200, the journal entry will be:
Credit to gain on bond retirement for $10,800bond payable $900,000 (Dr)
Gain on retirement $10,800 (Cr)
Discount on Bond $7,200 (Cr)
Cash $882,000 (Cr)
(Being entry of retirement of the bonds of the company)
Gain on retirement= ($900,000-$882,000)-($7,200)
Cash= [tex]\begin{aligned}(98\%\times\frac{9}{900000})\end{aligned}[/tex]
To know more about the entries and the calculation of the retirement, refer to the link below:
https://brainly.com/question/18764698
Pharsalus Inc. just paid a dividend (i.e., D0) of $ 2.69 per share. This dividend is expected to grow at a rate of 3.8 percent per year forever. The appropriate discount rate for Pharsalus's stock is 14.3 percent. What is the price of the stock
Answer:
P0 = $26.5925 rounded off to $26.59
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
P0 = 2.69 * (1+0.038) / (0.143 - 0.038)
P0 = $26.5925 rounded off to $26.59
The DuPont formula is: Select one: A. Return on Assets x Asset Turnover (Asset Utilization) B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization) C. Return on Equity x Debt-to-Equity Ratio D. Return on Investment x Debt-to-Equity Ratio E. None of the above
Answer:
B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization)
Explanation:
The DuPont formula is Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization). Under Du Pont Analysis, ROI (Return on assets ) = Profit Margin * Assets turnover
A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency is referred to as
Answer:
gross rating points (GRPs).
Explanation:
A Gross rating point is the point that represents the impact of the advertising. It can be determined in a percentage form by multiplying the target market with the frequency.
Let us take an example
Let suppose 30% represents the target market
And, there is a frequency of 4
So here the gross rating point is
= 30% × 4
= 120
Therefore the given situation represents the gross rating point.
You are convinced that a stock's price will move by at least 15% over the next 3 months. You are not sure which way the price will move, but you believe that the results of a patent hearing are definitely going to have a major effect on the stock price. You are somewhat more bearish than bullish however. Which one of the following options strategies best fits this scenario?
a. buy a strap.
b. buy a strip.
c. write a straddle.
d. buy a straddle.
Answer:
b. buy a strip.
Explanation:
The strip is the option strategy in which we can purchase two options and one call option at the similar strike price and the similar maturity time period. It should be considered at that case when there is high expectation in bearish as compared with the bullish.
Since in the question it is mentioned that there is more bearish than bullish so here the buy a strip would be relevant
hence, the option b is correct
In normal times, the general equilibrium multiplier is__________ than the partial equilibrium multiplier because the increase in equilibrium inflation causes the real interest rate to __________, which affects private consumption and investment.
a. higher, decrease
b. smaller, decrease
c. higher, increase
d. smaller, increase
Answer:
B. smaller, decrease
Explanation:
First calculate the equilibrium constant:
Kc = [CO] [H2O] / [CO2] [H2] = (0.050) (0.040) / (0.086) (0.045) = 0.517.
By adding more CO2, the equilibrium will shift to the right, so both CO2 and H2 will lose x, and both CO and H2O will gain x. The new equilibrium expression is:
0.517 = (0.050+x) (0.040+x) / (0.25-x) (0.045-x)
Now rearrange to quadratic form (this takes some work):
0.483x² + 0.242x - 0.00381 = 0
Solving, using the quadratic formula, x = 0.0153 is the only positive root. Now we can calculate the new equilibrium concentrations:
[CO2] = 0.25 - 0.0153 = 0.235 M
[H2] = 0.045 - 0.0153 = 0.0297 M
[CO] = 0.050 + 0.0153 = 0.0653 M
[H2O] = 0.040 + 0.0153 = 0.0553 M.
If these new concentrations are replaced into the equilibrium expression, the original Kc is obtained, so the answers check.
According to Carol Stack in All Our Kin (cited in Guest) the Black families of "The Flats" in Chicago create extensive kinship networks based on reciprocity to survive scarce resources and other threats to survival.
a. True
b. False
Answer:
a. True
Explanation:
Black families all over the world embark and rely on and recognize extensive kinship. This practice helps them to survive when there are scarce resources. It also helps to overcome the other survival threats. In "The Flats" in Chicago as captured by Carol Stack in her dissertation, just as in all African societies, kinship is very pivotal to life and survival. People rely on their kins to climb the social ladder and to get out of poverty. The concept of "Boyerism" survives today based on kinship. This new cultural trend has ensured that boys from poor backgrounds transform their misfortune to fortune within six years.
On January 1, 2021, Gundy Enterprises purchases an office building for $338,000, paying $58,000 down and borrowing the remaining $280,000, signing a 9%, 10-year mortgage. Installment payments of $3,546.92 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
Record the purchase of the building on January 1, 2021.
Answer:
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
Explanation:
Preparation of the journal entry to Record the purchase of the building on January 1, 2021.
Based on the information given we were told that the company purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
(Being to record the purchase of building)
g I see you took a course about managing ethics and corporate social responsibility. What did you learn in that class
Explanation:
Analyzing the business scenario today, where there is a totally globalized and competitive world, it can be said that the management of ethics and corporate social responsibility are essential issues for a company to achieve a position before its stakeholders.
Globalization, new technologies and a very fast flow of information have brought consumers closer to organizations and this has led companies to seek to adapt their processes to survive in this new context, where they need to differentiate themselves not only for their products and services, but for your identity and values.
The companies then became agents that promote social and environmental responsibility, where every action that can cause damage to society is rewarded with social programs, environmental protection, promotion of ethics and protection of human rights. This is a way for organizations to stand out in the market, increase their value, attract investments, maintain continuous improvement, etc.
f
(x+y - 1) dx + (х + 2y -3)dy =0
Answer:
We have dx and dy such that we take the derivative with respect to x and y ie dx/dy and dy/dx We treat y as a constant such that dx results in 1 The dx results in 1 The dy results in 2So 1+2 =3The Mixing Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. Assuming the weighted-average method, the equivalent units of production are
Answer:
Materials = 23,000 units
Conversion Costs = 23,000 units
Explanation:
Note that the weighted-average method is being used to calculate the equivalent units.
Using this method, we are interested only in calculating equivalent units in units that were completed and transferred and units of ending work in process.
Calculation of equivalent units of production for Materials and Conversion Costs.
Materials
Completed and transferred (20,000 units × 100%) 20,000
Ending Work In Process (5,000 units × 60%) 3,000
Equivalent units 23,000
Conversion Cost
Completed and transferred (20,000 units × 100%) 20,000
Ending Work In Process (5,000 units × 60%) 3,000
Equivalent units 23,000
On July 1, 2011, Hale Kennels sells equipment for $66,000. The equipment was originally purchased on July 1, 2007 at a cost $180,000, had an estimated 5-year life and an expected salvage value of $30,000. The company books depreciation annually. What is the balance in Accumulated Depreciation as of December 31, 2010? What is the journal entry to update depreciation as of July 1, 2011? What is the journal entry to record the sale of the equipment?
Answer:
journal entry to update depreciation as of July 1, 2011
Depreciation Expense $16,000 (debit)
Accumulated Depreciation $16,000 (credit)
journal entry to record the sale of the equipment
Cash $66,000 (debit)
Accumulated Depreciation $128,000 (debit)
Equipment $180,000 (credit)
Profit and Loss $14,000 (credit)
Explanation:
If Hale Kennels uses the straight line method then the calculations will be as follows :
Annual Depreciation Charge = (Cost - Residual Value) ÷ Estimated Useful Life
= ($180,000 - $30,000) ÷ 5
= $32,000
Therefore,
Depreciation Charges for the period in use will be as follows :
2007 = $16,000 ($32,000 × 1/2)
2008 = $32,000
2009 = $32,000
2010 = $32,000
2011 = $16,000 ($32,000 × 1/2)
Total Accumulated depreciation = $128,000
Explaining journal entry to record the sale of the equipment
1. Derecognize the Cost of the Asset
2. Derecognize the Accumulated depreciation
3. Recognize the Cash Proceeds
4. Recognize the Profit or Loss arising from the sale
Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $ 600,000 and the fair market value of the office building is $360,000. In addition, Moss receives cash of $ 150,000. What is the recognized gain or loss and the basis of the office building
Answer:
Moss
The recognized loss and the basis of the office building are:
Recognized loss = $90,000
Basis of office building = $360,000
Explanation:
a) Data and Calculations:
Adjusted basis of warehouse = $600,000
Fair market value of the office building = $360,000
Cash received in exchange = $150,000
Total value of assets received in exchange of the warehouse = $510,000 ($360,000 + $150,000)
Recognized loss = $90,000 ($600,000 - $510,000).
b) From the above transactions, Moss will recognize a loss of $90,000. This is the difference between the adjusted basis of the warehouse and the fair market value of the office building and the cash that Moss received in exchange for the warehouse.
Select the correct answer.
Shantel Inc. has issued a certification that its financial statements give a fair view of the company's financial condition. Which section does this certification comply with?
А. Section 302
B. Section 401
c. Section 404
D. Section 309
Please explain
Answer: A- section 302
Explanation: these are the clauses in section 302
Certification stating that all the reports have been reviewed before being signed
Certification that the financial reports are genuine and do not contain any misleading or untrue information
Certification that the financial statements give a fair view of the company’s financial condition
Certification confirming that the company’s internal controls have been examined by the signing officers in the past 90 days, and the findings have been reported
Certification that includes a list of all inadequacies found in the internal controls, as well as information concerning theft, misuse, or fraud involving the company’s employees
Certification stating any major changes in the internal controls that might have an adverse effect on the system
Section 302 of the Act deals with certification of declaration giving a fair view of the financial statements of the company's position.
What is the significance of the section 302?The section 302 of the Sarbanes-Oxley Act maintains that every company under the eyes of the law is required to get its financial statements certified by declaration that they show true and fair position of the company with respect to its profits and losses.
Hence, option A holds true that section 302 deals with the fair representation of company's financial statements.
Learn more about section 302 here:
https://brainly.com/question/17014793
#SPJ2
g To decrease the money supply, the Fed could Group of answer choices All of the above are correct. increase the discount rate. sell government bonds. increase the reserve requirement.
Answer:
All of the above are correct
Explanation:
When central banks or the Federal Reserve wants to control money supply in the economy it uses various tools that either mop up or increase money supply to the economy.
An increase in discount rate results in high interest rate of borrowing by commercial banks from the Federal Reserve. Cost of borrowing nos increased so money supply reduces.
Selling of government bonds is used to reduce cash in circulation. As investors buy the bonds money is moved from the economy to the Federal Reserve.
Reserve requirement is the amount of cash that commercial banks are required to keep with the Reserve. An increase in this means commercial banks have less to give to its customers
