There are three parties on a promise instrument: the maker, the drawee, and the payee
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose the Fed's Open-Market Desk thinks the downward-sloping portion of the demand for reserves is given by the equation
D = 28 ? (3 ×i),where i is the federal funds rate in percent and D is expressed in billions of dollars. Suppose the Fed is currently supplying $26.5 billion in nonborrowed reserves. There are no secondary or seasonal credit discount loans. The primary credit discount rate is currently set at 2 percent and the interest rate on reserves is 0.30 percent. The Fed's target for the federal funds rate is 1 percent. a.Does the Desk need to change the supply of reserves in the market? How much does it need to add or withdraw from the market? After carrying out its daily actions, what will be the equilibrium amount of reserves and discount loans? b.Suppose the demand curve for reserves shifts to D = 35 ? (3 ×i). The Fed does not realize that the demand curve has shifted, so it keeps the supply of nonborrowed reserves at the level you determined in part a. Calculate the equilibrium federal funds rate, reserves, and the amount of primary credit discount loans. What will be an ideal response?
Floyd's Barbershop has fixed costs of $3,000 per month. Floyd regularly performs 400 haircuts a month and he does not anticipate this to change. Each haircut has a variable cost of $4.00. If Floyd would like to earn a target profit of $2,000, what does he need to charge for each haircut?
A) $12.50 B) $16.50 C) $11.50 D) $8.50
On a website advertising its LSAT preparation classes, The Princeton Review includes this sentence: Since 1998, more than 99% of our surveyed students have said they would recommend Law Preview to entering law students. This persuasive technique relies on ________
A) indirect benefits to the reader B) expert opinion C) facts and statistics D) problem description
How does the traditional view of the business mission differ from the new approach?
What will be an ideal response?