The fact that the Fed is willing to pay interest on reserves gives the Fed another mechanism for affecting the money supply and the amount of reserves that banks hold. How might a very low interest rate paid on reserves increase the money supply? (Hint: Consider the possible uses of excess reserves.)
What will be an ideal response?
The fifth listed use for excess reserves is to make new loans. If the interest rate paid on reserves is very low, banks will be motivated to use some of their excess reserves to earn higher returns by making loans. Increased loans means an increased money supply.
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The marketing manager of Toddles Baby Food is redesigning the package for her product. She is trying to select a color that is visually appealing and is distinctive so that her brand is easy to identify. In the context of effective packaging, the marketing manager of Toddles is focusing on ________.
A. harmony B. aesthetics C. usage promotion D. protection E. quality
What is the risk of investing money in American depository receipts (ADRs)??
A. ?Risks associated with the corporations in which the investments are made B. ?ADRs are not foreign stocks C. ?Inability to take funds such as dividends out of the country D. ?Risk of translation of value into domestic terms E. ?Risk of translation of information into domestic terms
Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.
Answer the following statement true (T) or false (F)
The audit of the inventory management process is affected by the audit results from multiple other processes. Identify the processes, other than the inventory management process, that affect the audit of inventory and explain how each affect the audit of inventory.
What will be an ideal response?