How do central banks control interest rates?

Answers

Answer 1

Central banks frequently concentrate on a single "policy rate," which is typically a short-term, frequently overnight rate that banks charge one another to borrow money.

Briefing:-

The rate decreases when the central bank adopts what is known as a "loosening policy," which involves purchasing or borrowing securities.

In what ways do central banks control interest rates?

By modifying the money supply, usually through open market activities, central banks implement monetary policy. By selling government bonds under a "sale and repurchase" deal, for instance, a central bank can raise cash from commercial banks while reducing the amount of money available.

Do the interest rates have direct influence over the central bank?

The central bank's capacity to change the discount rate is the most important economics instrument in its arsenal. Changes in this important interest rate have a significant impact on the macroeconomic building blocks including consumer spending and borrowing.

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Related Questions

If the forecast called for the temperature to drop to 35 degrees for two weeks, what would
happen to the supply and demand for lemons?

Answers

Answer:

Well the lemons would overall stop growing. Cause they would get to cold and say brrrr! So naturally the fruit stop growing cause it's trying to stay warm. The overall product would slow down then. Also if the coldness was imediate then it would out the lemons into shock.

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the supply and demand would increase due to the hot weather and the sudden rate of things such as lemonade stands. this would mean that the weather would act as an extension strategy for any lemonade businesses, and also for the supermarkets in which they’re bought from.

Why is it important that your resume, cover letter, and job application all contain the same information?

Answers

Answer:

A cover letter is an important way to showcase how your unique combination of skills and experience meet the key requirements of the job description. It is your chance to show a clear link between your knowledge, experience and abilities and the needs of the employer.

Explanation:

Aleisha wants to buy a condominium. She has the choice of buying it now or renting it with the option to buy at the end of 4 years. If she rents now, she must pay a deposit of $1,500 and pay rent of $865 per month. If she buys, she would need closing costs and her mortgage payment would be $844 a month for 4 years. How much would her closing costs need to be in order for the cost to buy to be the same as the cost to rent

Answers

Answer:correct option is b. $2,508Step-by-step explanation:given datafor rent deposit = $1,500rent = $865 per monthtime = 4 yearmortgage payment = $844to find outHow much would her closing costs need to order for the cost to buy to same as cost to rentsolutionfirst we get here Total payment by monthly payment for 4 year rent isTotal payment = $865 × 4 year × 12 monthsTotal payment for rent = $41520and so the total amount pay in rent istotal amount pay in rent = Amount deposited + Total payment   ..............1total amount pay in rent = $1500 + $41520total amount pay in rent = $43020andnow we get total payment by monthly payment for 4 year when buytotal payment =  $844 × 4 year × 12 monthstotal payment for buy = $40512and now we consider here closing costs for buying =  xsototal amount pay in buy = total payment + closing costs   ..............2total amount pay in buy = $40512 + xso here cost to buy to be same as cost to rent so$40512 + x = $43020x = $2508so here closing costs will be $2508so correct option is b. $2,508:

Suppose the city of Austin, TX chooses to regulate the number of street vendors operating near the University of Texas by requiring each vendor to own a permit in order to operate. The city gives free permits to all existing vendors and announces that no new permits will ever be issued. Prior to regulation, the costs (including implicit costs) of operating were $85,000 and revenues were $150,000. The city ordinance allows the permits to be bought and sold without restriction. The permits have no expiration date. The interest rate is 10 percent. After regulation, existing street vendors earn an
A. accounting profit of zero.
B. economic profit of $130,000.
C. economic rent of $65,000
D. economic loss.

Answers

Answer:

economic rent of $65,000

Explanation:

Economic rent is the amount of money paid in excess to a factor of production in excess of what is socially optimum

Economic rent = $150,000 - $85,000 = $65,000

Accounting profit= total revenue - explicit cost

Total revenue =price x quantity sold  

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Without the regulation, economic profit would be driven to zero.

If you could completely remove something you put online forever, what would it be?

Answers

Answer: Nothing, I just want it all if I would remove something I would of tell you. But I don’t. :)

Explanation:

30 points please help!
Olive's organic Baby food believes their reputation is being put down by a competitor because of their untruthful advertising. Which of the following types of business tort is this?
a. fra ud
b. crim inal
c. defam ation

Answers

Answer:

i believe is fraud

Explanation:

if you find it helpful pls give me the points

Which of the following is a true statement?
1) FAS Market Development and Export Assistance partners with over 100 cooperator groups
2) FTC stands for Federal Trade Commission
3) FAS stands for Federal Agricultural Sector
4) Imports are goods produced in one country then shipped to another country​

Answers

Answer:

2) FTC stands for Federal Trade Commission

Explanation:

The true statement is that, FTC stands for Federal Trade Commission.

The Federal Trade Commission (FTC) is an agency of the government of the United States of America saddled with the responsibility of promoting consumer protection and the enforcement of all civil antitrust laws.

Basically, the laws formulated or established by the FTC are to provide protection for consumers of various goods and services while requiring that businesses do not make false claims about them. Also, the Federal Trade Commission (FTC) is responsible for competition regulations among manufacturers of goods and services provided for the consumers.

2. The owner of a franchise benefits from brand name recognition, access to professional
and nationwide advertising.

Answers

Answer:

True

Explanation:

It is TRUE that the owner of a franchise benefits from brand name recognition, access to professional and nationwide advertising.

This is because the owner of a franchise has various advantages. The advantages include enhanced reputation which covers all the places there is a franchise.

Then there is an increase in management techniques and work practices, including access to national advertising to cover many places and continuous support.

Personal selling used to be more common.

True
False

Answers

The answer is true as in true
Answer : true personal selling used to be more common


Businesses like to keep operating costs as low as possible, so they can focus on
production and profit. One way to keep operating costs down is to keep wages
low. Many businesses pay their workers the minimum wage required by law.
Often; workers consider this unfair and feel they should be paid more than the
bare minimum for the work they do. Paying employees the minimum wage is
certainly not illegal, but is it always ethical? What do you think?*

Answers

Answer:

No I don't think it is very ethical to only be paying employees minimum wage. The cost of living keeps going up and people need to be able to afford the basic necessities of life. The prices of everyday goods like groceries and household basics keep going up making it hard for people to be able to afford them especially when they are only making minimum wage. When the product cost is higher, the company is making more profit, therefore they are able to pay their workers more. When the prices of goods and products increase, wages should increase as well.

Explanation:

How do you give bainliest

Answers

After 2 people answer on-top of their name will have the option for you to choose which answer is the most helpful to you

A assessment may alter the content of a sales pitch.

True
False

Answers

The answer is true

This is because a assessment is a process of determining needs, and or gaps between conditions. And a sales pitch is a sales presentation where a salesperson explains the benefits of their business.

Knowing all of this information, a needs assessment can alter the content of a sales pitch.

Read the scenario below and then answer the question. Sample scenario: Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario

Answers

Answer: a good with an elastic supply

Explanation:

Price elasticity of supply simply refers to how the changes in market price of a good bring about a responsiveness to the supply of such good.

Based on the information given, the best description of the grass seed that is described in this scenario is that it's a good that has an elastic supply. This is because the price of the good in thus case, is sensitive to the changes in the price.

Answer:

It's a good with an elastic supply

Explanation:

edge 2021

Pete would like to respond only to users within his organization with an automatic reply. He is configuring the automatic response. Which option should he select?

answer b

Answers

Answer: B: Inside my organization tab

Explanation: edge 2021 unit review


What is an example of a common part of a company's brand that would be represented in television
commercials?

Answers

Answer:

logos, product, company's name, :DDD and endorsers

Which aspect of diversity can be positive or negative? A (blank) can be negative or a positive.

Answers

Answer:

Positive aspects of diversity is that no one is the same. Everyone is  their own person. There is no negative to diversity. It is the people themselves who think negativly of diversity often by discrimination.

Explanation:

i hope this helped and was on point and I'm sorry if it wasn't. I just stumbled on your question...

Answer:

stereotyping

Explanation:

IZSA
11. Laser Research, Inc., is sending their five-person research team to a three-day conference to
learn a new automated lab procedure. One researcher earns $336 daily, two earn $360 daily.
and two earn $390 daily. What will the three-day conference cost Laser Research, Ine, in
lost productivity for the five researchers?

Answers

Answer:

The three-day conference will cost Laser Research, Inc. $ 5,508 in lost productivity.

Explanation:

Given that Laser Research, Inc., is sending their five-person research team to a three-day conference to learn a new automated lab procedure, and one researcher earns $ 336 daily, two earn $ 360 daily and two earn $ 390 daily, to determine what will the three-day conference cost Laser Research, Inc, in lost productivity for the five researchers, the following calculation should be performed:

336 x 3 + 360 x 2 x 3 + 390 x 2 x 3 = X

1,008 + 720 x 3 + 780 x 3 = X

1,008 + 2,160 + 2,340 = X

5.508 = X

Thus, the three-day conference will cost Laser Research, Inc. $ 5,508 in lost productivity.

Which statement best explains why the United States grew into a world
economic power in the 20th century?
O A. The United States prevented other countries from abandoning the
gold standard.
O B. The United States increased its participation in international trade.
C. The United States put effective trade barriers in place to limit trade
with other nations.
D. The United States stayed out of major world wars and instead
made economic investments.

Answers

Answer:

B. The United States increased its participation in international trade.

Explanation:

The correct option is - B. The United States increased its participation in international trade.

Question 11 of 40
Which of these is most likely to threatened a company's financial security?
A. shoplifting
B. social security numbers
C. infringement
D. embezzlement
SUBMIT

Answers

Social security numbers I do believe! :)

Answer: I’m pretty sure it’s D. embezzlement.

Explanation:

Embezzlement is described as theft or misappropriation of funds placed in one's trust or belonging to one's employer. Not sure though!

Often, an objection is simply a request for

A. a discount

B. a different salesperson

C. more time

D. more information

Answers

Answer:

C. and D.

Explanation:

An Objection is when a certain something strongly disagrees with a reasoning But that reasoning can be very challanging to be dealt with. an expression or feeling of disapproval or opposition; a reason for disagreeing.

which of the following is a person who authorized an agent to act on his or her behalf ​

Answers

Answer:

Principal

Explanation:

A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).

The Two types of wills are:
- formal and holographic
- legal and fake
- formal and casual
- none of the above

Answers

3 won I think if not sorry

ESTIONS
Discuss FOUR phases of business cycle in detail​

Answers

Answer:

The answer is below

Explanation

1. Expansion: this is a period in which business is growing at a considerable rate. Such as an increase in production and sales

2. peak: this is a period in which production and prices increase beyond the normal level. This shows there is no longer room for increment.

3. contraction: this is a period in a business cycle in which the productions and sales began to fall due to low patronage and a bad economy.

4. Trout: this is a peak period in which business models lost their values in terms of production and sales. At this point, it is believed that the business cannot get worse.


Communication may account for as much as____ of a hiring decision.

a. 25%
b. 40%
c. 65%
d. 80%

It isnt d or b. So its either a or c.

Answers

The answer is A
I hope this helps
The answer is going to be a

Which of the following laws limits the hours and types of duties in which teens can work​

Answers

Fair Labor Standards Act

A water main downtown broke this morning, so several businesses had no water for hours. a. addition b. time c. comparison d. cause and effect 2. Even though most Americans are primarily concerned about AIDS as it exists in the U.S., it should be remembered that it is now nearly a worldwide disease. a. addition b. time c. contrast d. comparison 3. Larry will probably be a late bloomer socially, just like his older brothers. a. time b. contrast c. comparison d. cause and effect 4. There are ways you can make

Answers

Complete Question:

4. There are ways you can make boring tasks more pleasant. For instance, bring a portable radio and listen to music on the earphones while you work.

Answer:

1. D

2. C

3. C

4. Illustration or example.

Explanation:

1. Cause and effect can be defined as the relationship between two things or events in which an occurrence one (cause) leads to the occurrence of another (effect).

2. A contrast is typically used to show the difference between two concepts, people, place or objects. For example, AIDS doesn't exist only in US but it's now a worldwide disease.

3. Comparison involves the process of showing the relationship or similarities between two concepts, people, place or objects.

4. An illustration or example is used to describe a situation by sighting or sharing a real-life experience.

a A rocket shoots up 123 meter
i. What is its initial velocity -​

Answers

Answer:

Initial Velocity= 49 m/s

Time period= 5 secs

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

A rocket shoots up 123 meters. What is it initial velocity?How long is it ascending

The initial velocity can be calculated using the expression below

u= √( 2gh)

Where g= Acceleration due to gravity= 98 m/s^2

h= height

Substitute the values we have

u = √(2*9.8*123)

u=√( 2410.8)

u = 49 m/s

the time period can be calculated as

(49/9.8)

= 5 sec

Hence time period is 5 secs

You can buy a computer with your credit card and pay for it over the course of one year. With an interest rate of 16 percent, you would need to pay $181.46 for 12 months to pay off the charge. You can rent the computer for 12 months for $200 per month and, at the end of the rent period, buy it for $300. How much will you save by purchasing the computer with your credit card instead of using the rent-to-own plan?

Answers

Answer:

you can save $522.48 by purchasing the computer with the credit card

Explanation:

total money paid to the credit card company = $181.46 x 12 = $2,177.52

total money paid for renting the computer = $200 x 12 = $2,400, plus the final payment = $2,400 + $300 = $2,700

money saved by using the credit card = $2,700 - $2,177.52 = $522.48

What is another name for administrative law?

Answers

Answer:

Regulatory law

Explanation:

Administrative law is an arm of public law and is also known as “regulatory law.”

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in units would:

Answers

Answer:

"Decrease by 250" is the appropriate response.

Explanation:

The given values are:

Revised fixed cost,

= $150,000

Current selling price,

= $100

Current variable cost,

= $60

Current contribution will be:

=  [tex]Current \ selling \ price-Current \ variable \ cost[/tex]

=  [tex]100-60[/tex]

=  [tex]40[/tex]

Now,

The revised BEP will be:

=  [tex]\frac{Revised \ fixed \ cost}{Revised \ contribution}[/tex]

On substituting the values, we get

=  [tex]\frac{150,000}{40}[/tex]

=  [tex]3750 \ units[/tex]

hence,

=  [tex]4000-3750[/tex]

=  [tex]250[/tex]

Thus the above is the correct answer.

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