Define open market operations and describe how the Federal Reserve Bank uses them to control the money supply
What will be an ideal response?
Open market operations are the buying and selling by the Federal Reserve Bank of U.S. Treasury and federal agency bonds on the open market. Securities dealers compete in these transactions to get the best deal. When the Fed buys or sells U.S. securities, it is changing the level of monetary reserves in the banking system. When it buys securities, it adds reserves to the banking system, thereby increasing the money supply and lowering interest rates. When it sells securities, it decreases the amount of reserves in the system, thereby reducing the money supply and causing interest rates to rise.
You might also like to view...
Which of the following is included in the cost of constructing a building?
a. cost of paving the parking lot b. cost of removing the demolished building existing on the land when it was purchased c. insurance costs during construction d. cost of repairing vandalism damage during construction
On January 1, 2018, Waddle Company adopted a compensatory stock option plan and granted its managers 10,000 options to buy shares of common stock; each option can be used to acquire a share of common stock at a price of $25 a share. The fair value of each option was $7.50 on January 1, 2018. The options can be converted into common stock after July 1, 2018. The required service period is three years. What is the balance in paid-in capital-stock options as of December 31, 2019 assuming that the fair value approach to accounting for stock options is used?
A. $100,000 B. $25,000 C. $50,000 D. $0
Mike's Models Inc. is a modeling agency registered in Delaware, specializing in Central and South American women for print, runway, and other modeling work. The company's manager of the Venezuelan territory, Jose, a Venezuelan citizen, has discovered Sonja and believes that she has the potential to be a supermodel. Because permission for her to travel to the United States could take weeks and Mike's wants her for a car show in 10 days, Jose offers the head of Venezuelan immigration services the use of the company's New York City penthouse and personal use of the company's limousine the next time the official visits the United States in exchange for putting Sonja's papers through quickly. The official turns him down. Has the Foreign Corrupt Practices Act been violated? Fully explain why or
why not. What will be an ideal response?
Answer the following statements true (T) or false (F)
1. One of the ways that nonprofit organizations differ from for-profit corporations is their type of stakeholders. 2. One source of nonprofit management literature comes from academics at universities. 3. Nonprofit organizations are less well managed than businesses. 4. The beginning of management as a field of study dates approximately to the late 19th century. 5. Most small businesses fail within the first 2 years of business.