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andrey2020 [161]
2 years ago
15

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and p

rolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate, and (c) open-market operations would you recommend? Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand. g
Business
1 answer:
Dmitry [639]2 years ago
6 0

Answer:

Explanation:

1. Assuming an economy is experiencing a sharp and prolonged inflationary trend, I'll recommend the following changes:

a. Reserve ratio: I will increase the reserve ratio.

b. Discount rate: I will increase the discount rate.

c. Open market operations: I will recommend tightening the money supply through the selling of more government bonds.

2a. The reserve requirement is the central bank regulation which sets the minimum amount of reserves which must be held by a commercial bank. An increase in the reserve ratio will lead to less money in circulation.

b. the money supply: Thhe money supply will contract i.e tighten

c. Interest rates: Interest rates will rise leading to an increase in the investments which keeps money out of circulation and also lead to a decrease in inflation rates.

d. Aggregate demand. Aggregate demand would reduce, and this would lead to a reduction in inflation.

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Ethan's job as an accounting assistant was recently modified to include reconciling bank accounts and making deposits, two tasks
jek_recluse [69]

Answer:

The correct option is C,job enrichment

Explanation:

Job enlargement refers adding additional tasks to an employee's job description and it is done for different reasons. The chief possible motive for job enlargement could be prepare the employee for a higher role.

Satisficing on the job involves ensuring one is able to attend to tasks one is saddled with in order to achieve a balance between different stakeholders' expectations instead of prioritizing one's stakeholder's need over another.

Job enrichment is a way of encouraging employees to give out their best output by assigning to them jobs previously reserved for more senior employees

Job design implies making decision on a job description by considering tasks that could be combined and performed by a single employee

Job development is about appraising an employee with a view to discovering his growth needs on the job and make adequate arrangement in terms of training to enable the employee to bridge the skills gap

The bone contention here is between options A and C,but C is preferred since the additional tasks are tasks previously meant for one's managers.

7 0
2 years ago
Oakley, a freshman just starting college, hasn't decided on his major. He is looking into operations management and is also expl
andreev551 [17]

Answer:

Acquire skills and knowledge that are valuable to firms in both manufacturing and service sectors

Explanation:

Manufacturing and service operations answer different questions and formulate different strategies when it comes to planning and managing the way in which an organization is run.

5 0
2 years ago
Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common st
otez555 [7]

Answer:

$22.2222, $9.5238, respectively

Explanation:

The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:

B = \frac{\$100}{4.5}=\$22.2222

The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:

E=\frac{\$100}{10.5}\\E=\$9.5238

The book value per share and earnings per share are $22.2222, $9.5238, respectively

5 0
2 years ago
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $
STatiana [176]

Answer:

6.35%

Explanation:

If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40

the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months

the bond matures in 18 years or 36 semiannual periods

yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]

YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%

8 0
2 years ago
To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertica
GuDViN [60]

Answer:

Market growth rate

Explanation:

The market growth rate refers to a rate in which the company is able to know how much it is growing it could be measured by comparing the prior years performance.

The BCG comprise of Boston consulting group that includes four things i.e. star, question mark, cash cow and dog in which the market growth rate is appears on the vertical axis, and in the horizontal axis, the relevant market share is displayed

Hence, the market growth rate is the answer

7 0
2 years ago
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