Which of the following actions by the Fed will increase the money supply Quizlet

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow.

MoldingTrimmingDirect labor hours………52,000 DLH 48,000 DLHMachine hours………30,500 MH3,600 MHOverhead costs………$730,000$590,000\begin{matrix} & \text{Molding} & \text{Trimming}\\ \text{Direct labor hours} \ldots\ldots\ldots & \text{52,000 DLH} & \text{48,000 DLH}\\ \text{Machine hours}\ldots\ldots\ldots & \text{30,500 MH} & \text{3,600 MH}\\ \text{Overhead costs}\ldots\ldots\ldots & \text{\$730,000} & \text{\$590,000}\\ \end{matrix}

Data for two special order parts to be manufactured by the company in 2017 follow.

Part A27CPart X82BNumber of units……… 9,800 units54,500 unitsMachine hoursMolding………5,100 MH1,020 MHTrimming………2,600 MH650 MHDirect labor hours Molding………5,500 DLH2,150 DLHTrimming……… 700 DLH3,500 DLH\begin{matrix} & \text{Part A27C} & \text{Part X82B}\\ \text{Number of units} \ldots\ldots\ldots & \text{9,800 units} & \text{54,500 units}\\ \text{Machine hours}\\ \text{Molding} \ldots\ldots\ldots & \text{5,100 MH} & \text{1,020 MH}\\ \text{Trimming} \ldots\ldots\ldots & \text{2,600 MH} & \text{650 MH}\\ \text{Direct labor hours}\\ \text{Molding} \ldots\ldots\ldots & \text{5,500 DLH} & \text{2,150 DLH}\\ \text{Trimming} \ldots\ldots\ldots & \text{700 DLH} & \text{3,500 DLH}\\ \end{matrix}

  1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.

A merger boom comparable to those of the 1960s and mid-1980s occurred in the 1990s and into the new century. The merger activity of the 1960s was associated with increasing stock prices and heavy use of pooling-of-interests accounting. The mid-1980s activity was associated with a number of leveraged buyouts and acquisitions involving junk bonds. Merger activity in the early 1990s, on the other hand, appeared to involve primarily purchases with cash and standard debt instruments. By the mid-1990s, however, many business combinations were being effected through exchanges of stock. In the first decade of the new century, the nature of many business acquisitions changed, and by late 2008 , the merger boom had slowed dramatically.

  • What factors had a heavy influence on mergers during the mid-2000s? How did many of the business combinations of this period differ from earlier combinations? Why did the merger boom slow so dramatically late in 2008 and in 2009? What is the new focus since that time?

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The M1 money supply is composed of
a. currency, demand deposits, traveler's checks, and other checkable accounts.
b. currency, demand deposits, savings deposits, money market mutual funds, and small time deposits.
c. currency, government bonds, gold certificates, and coins.
d. currency, NOW accounts, savings accounts, and government bonds.
e. none of the above.

The Fed's tools of monetary control are
a. fiat, commodity, and deposit money.
b. coin, currency, demand deposits, and commodity money.
c. open-market operations, lending to banks, reserve requirements, and paying interest on reserves.
d. the money supply, government purchases, and taxation.
e. government expenditures, taxation, reserve requirements, and interest rates.

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Which of the following actions by the Fed would increase the money supply?

To increase the (growth of the) money supply, the Fed could either buy bonds, lower the reserve requirement ratio, or lower the discount rate. To decrease the (growth of the) money supply, the Fed could either sell bonds, raise the reserve requirement ratio, or raise the discount rate.

Which of the following actions by the Fed would increase the money supply reducing the required reserve ratio?

The correct answer is a. When the Fed wants to increase the money supply, it implements an expansionary monetary policy. This type of policy includes the decrease of the discount rate, the purchase of government securities, and the reduction of the reserve requirement ratio.

Which of the following will increase with an increase in the money supply?

According to monetarists, a rapid increase in the money supply can lead to a rapid increase in inflation. This is because when money growth surpasses the growth of economic output, there is too much money backing too little production of goods and services.

Which of the following would cause the money supply to increase quizlet?

the purchase or sale of government securities by the Fed. The purchase of government securities from the public by the Fed will cause: the money supply to increase.