ADJ Enterprises produces hydrothermocorticoids. Consider the following facts about ADJ and the hydrothermocorticoid market:
For each of the past three years, ADJ has earned the following profits: a Net Profit Margin of 6% and a Return on Investment of 11%. (Net Profit Margin and Return on Investment are two common measures of the profitability of a business; the exact details of Net Profit Margin and Return on Investment are not important for this question – in other words, you don’t have to know anything about Net Profit Margin and Return on Investment in order to answer this question successfully.)
For the past three years, other hydrothermocorticoid producers have also earned profits of a Net Profit Margin of 6% and a Return on Investment of 11%.
Producers in other industries with resources similar to ADJ have been earning profits for the past three years of: Net Profit Margin of 6% and Return on Investment of 11%.
ADJ is currently operating at full capacity; that is, it has all the business it can handle.
ADJ is currently producing a quantity of hydrothermocorticoids where Marginal Revenue is equal to Marginal Cost.
There are between 125 and 150 hydrothermocorticoid producers in the U.S. The number of additional hydrothermocorticoid producers outside the U.S. is unknown.
The largest U.S. producers of hydrothermocorticoids produce about 1.2 million tons of hydrothermocorticoids each year; the smallest producers produce about 850,000 tons of hydrothermocorticoids each year; for the last three years, ADJ has averaged production of about 1.1 million tons each year.
Worldwide demand for hydrothermocorticoids is expected to remain constant for the next ten years.
The costs of producing hydrothermocorticoids are expected to remain constant for the next ten years.
The hydrothermocorticoids produced by ADJ are identical to those produced by all other firms in the industry
There are no patents in the production of hydrothermocorticoids
Neither a government license nor a large capital investment is required to begin producing hydrothermocorticoids.
There are no network externalities or economies of scale in the production and sale of hydrothermocorticoids.
What price should ADJ Enterprises charge for its hydrothermocorticoids? Explain how you know. Your answer will not include any specific number.

Answers

Answer 1

ADJ Enterprises should charge a price for its hydrothermocorticoids that is equal to its Marginal Cost of production. This is because the firm is currently operating at full capacity, meaning that it has all the business it can handle. Charging a price above Marginal Cost would result in lost sales, as customers would switch to other suppliers who are

charging a lower price for the same product. Charging a price below Marginal Cost would result in losses for the firm, as it would not be covering its costs of production.Step-by-step explanation:In a perfectly competitive market, the price

of a good is equal to its Marginal Cost of production. This is because if a firm charges a price above Marginal Cost, customers will switch to other suppliers who are charging a lower price for the same product. This will result in lost

sales for the firm, and it will have to lower its price to remain competitive. On the other hand, if a firm charges a price below Marginal Cost, it will not be covering its costs of production and will incur losses. Therefore, in order to maximize profits, a firm should charge a price equal to its Marginal Cost of production.In the case of ADJ Enterprises, the firm is currently producing a quantity of hydrothermocorticoids where Marginal Revenue is equal to Marginal Cost. This means that the firm is already charging the profit-maximizing price. Therefore, ADJ Enterprises should continue to charge the same price for its hydrothermocorticoids, as long as its costs of production remain constant and there are no changes in market conditions.

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Answer 2

ADJ Enterprises should charge a price equal to its marginal cost for its hydrothermocorticoids.

This is because the hydrothermocorticoid market is perfectly competitive, which means that there are many producers of identical products, and there are no barriers to entry. As a result, firms in a perfectly competitive market are price takers, meaning they have no control over the price they can charge for their product.

In addition, the fact that ADJ is currently operating at full capacity and producing a quantity of hydrothermocorticoids where marginal revenue is equal to marginal cost suggests that the firm is already producing at the profit-maximizing level. Charging a price above marginal cost would result in fewer sales and lower profits, while charging a price below marginal cost would result in a loss. Therefore, charging a price equal to marginal cost is the only viable pricing strategy for ADJ in the perfectly competitive hydrothermocorticoid market.

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Related Questions

which type of appraisal credential allows an appraiser to appraise all types of real property?

Answers

The appraisal credential that allows an appraiser to appraise all types of real property is the Certified General Appraiser credential.

This credential is obtained through fulfilling specific education, experience, and examination requirements set by the Appraisal Qualifications Board (AQB) in the United States.

A Certified General Appraiser is qualified to appraise various types of properties, including residential, commercial, industrial, agricultural, and special-purpose properties.

This credential signifies a higher level of expertise and knowledge in the field of real estate appraisal, enabling the appraiser to provide professional valuation services for a wide range of property types.

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refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly.

Answers

Answer:

carbon footprint

Explanation:

The carbon footprint is the total greenhouse gases amount that also involved the carbon dioxide and methane in order to produced by our actions.

Also it is the amount of the greenhouses gases that become harmful when the firm emits at the time of its operations in a directly and indirectly manner

So the above represents the answer

The most dramatic increase in revenue is most likely to occur in the ____ phase of the prdouct life cycle/

Answers

The most dramatic increase in revenue is most likely to occur in the growth phase of the product life cycle. The product life cycle represents the stages a product goes through from its introduction to the market until its eventual decline. These stages typically include introduction, growth, maturity, and decline.

During the growth phase, a product experiences rapid market acceptance and an increasing customer demand. This phase is characterized by a surge in sales volume and a substantial increase in revenue. Customers become more aware of the product, and its reputation and market presence grow. As a result, the product captures a larger market share and attracts new customers.

Several factors contribute to the significant revenue growth in the growth phase. Firstly, the product's unique features and benefits may differentiate it from competitors, making it appealing to a wide range of customers. Additionally, effective marketing campaigns and positive word-of-mouth can drive increased demand and customer adoption. The company may also benefit from economies of scale, leading to improved cost efficiency and profitability.

However, it's important to note that the duration of the growth phase varies depending on the product and market dynamics. Eventually, the product reaches the maturity phase, where revenue growth stabilizes, and competition intensifies. Therefore, it is crucial for businesses to capitalize on the growth phase by leveraging their market position, investing in research and development, and exploring opportunities for expansion.

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The Chicago school is best known to support ?

Answers

Answer:

guess

Explanation:

this is easy

Wrote off an uncollectible account for $650. Provided $88,000 of services on account. Provided $32,000 of services and collected cash. Collected $81,000 cash from accounts receivable. Paid $65,000 of salaries expense for the year. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. d-1. Organize the transaction data in accounts under an accounting equation. d-2. Prepare an income statement for 2019. d-3. Prepare the statement of changes in stockholders' equity for 2019. d-4. Prepare the balance sheet for 2019. d-5. Prepare the statement of cash flows for 2019. d-6. What is the net realizable value of the accounts receivable at December 31, 2019?

Answers

Answer:

This question is incomplete. Since it is missing most of the information, I looked for a similar question and found this:

2018:

Issued $10,000 of common stock for cash. Provided $78,000 of services on account. Provided $36,000 of services and received cash. Collected $69,000 cash from accounts receivable. Paid $38,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Closed the revenue account. Closed the expense account.

2019:

Wrote off an uncollectible account for $650. Provided $88,000 of services on account. Provided $32,000 of services and collected cash. Collected $81,000 cash from accounts receivable. Paid $65,000 of salaries expense for the year. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

journal entries 2018

Issued $10,000 of common stock for cash.

Dr cash 10,000

   Cr common stock 10,000

Provided $78,000 of services on account.

Dr accounts receivable 78,000

    Cr service revenue 78,000

Provided $36,000 of services and received cash.

Dr cash 36,000

    Cr service revenue 36,000

Collected $69,000 cash from accounts receivable.

Dr cash 69,000

    Cr accounts receivable 69,000

Paid $38,000 of salaries expense for the year.

Dr wages expense 38,000

    Cr cash 38,000

Adjusted the accounting records to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 450

    Cr accounts receivable 450

Closed the revenue account. Closed the expense account.

Dr service revenue 114,000

    Cr income summary 114,000

Dr income summary 38,450

    Cr wages expense 38,000

    Cr bad debt expense 450

Dr income summary 75,550

    Cr retained earnings 75,550

income statement 2018

Service revenue           $114,000

Expenses:

Wages $38,000 Bad debt $450    ($38,450)

Net income                   $75,550

balance sheet 2018

Assets:

Cash $77,000

Accounts receivable $8,550

total assets                                           $85,550

Equity:

Common stock $10,000

Retained earnings $75,550

total equity                                            $85,550

statement of cash flows 2018

Cash flows form operating activities:

Net income                                      $75,550

adjustments:

Increase in accounts receivable     ($8,550)

net cash from operating activities  $67,000

Cash flow from financing activities:

Common stocks issued                   $10,000

Net cash increase                           $77,000

beginning cash balance                          $0

Ending cash balance                      $87,000

journal entries 2019

Wrote off an uncollectible account for $650.

Dr bad debt expense 650

    Cr accounts receivable 650

Provided $88,000 of services on account.

Dr accounts receivable 88,000

    Cr service revenue 88,000

Provided $32,000 of services and collected cash.

Dr cash 32,000

    Cr service revenue 32,000

Collected $81,000 cash from accounts receivable.

Dr cash 81,000

    Cr accounts receivable 81,000

Paid $65,000 of salaries expense for the year.

Dr wages expense 65,000

    Cr cash 65,000

Adjusted the accounts to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 745

    Cr accounts receivable 745

income statement 2019

Service revenue             $120,000

Expenses:

Wages $65,000 Bad debt $1,395    ($38,450)

Net income                      $53,605

balance sheet 2019

Assets:

Cash $125,000

Accounts receivable $14,155

total assets                                           $139,155

Equity:

Common stock $10,000

Retained earnings $129,155

total equity                                            $139,155

statement of cash flows 2019

Cash flows form operating activities:

Net income                                      $53,605

adjustments:

Increase in accounts receivable     ($5,605)

net cash from operating activities  $48,000

Net cash increase                           $48,000

beginning cash balance                 $77,000

Ending cash balance                    $125,000

net realizable value accounts receivable

net realizable value of accounts receivable 2018 = $8,550

net realizable value of accounts receivable 2019 = $14,155

what is descriptive analytics? what are the various tools that are employed in descriptive analytics? 3. how is descriptive analytics different from traditional reporting? 4. what is a dw? how can data warehousing technology help to enable analytics? 5. what is predictive analytics? how can organizations employ predictive analytics? 6. what is prescriptive analytics? what kinds of problem

Answers

Descriptive analytics is the use of analytics to describe data, usually with the goal of finding trends or patterns in the data.

The various tools employed in descriptive analytics include data visualization, data mining, and business intelligence.

Descriptive analytics is different from traditional reporting in that traditional reporting provides a single answer to a single question, while descriptive analytics can provide an in-depth analysis of data to uncover patterns and trends.

A data warehouse (DW) is a system designed to store, manage, and analyze large amounts of data from multiple sources. Data warehousing technology enables analytics by providing an environment for running complex queries and storing data for later analysis.

Predictive analytics is a branch of analytics that uses data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes. Organizations employ predictive analytics by analyzing data and developing models to understand customer behavior and predict potential risks and opportunities.

Prescriptive analytics is a branch of analytics that uses data, algorithms, and modeling to suggest the best solution or outcome for a given situation. It can be used to solve a variety of problems, such as pricing optimization, supply chain optimization, and resource allocation.

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Recall the methods of influencing followers discussed in Chapter 13. Which decision making style likely best fits with the influence tactic of collaboration

Answers

The decision-making style that is likely to fit best with the collaboration influence tactic is the behavioral style, which focuses on interpersonal relationships.

In this style of decision making, the leader seeks to positively influence his team through collaboration tactics, as his leadership style is geared towards integration between teams.

The decision-making process takes place in a collaborative search for information and evaluation of employees' reactions to a decision, being able to ask for advice and search for new ideas before making the decision.

Therefore, in the behavioral style, it is more likely to have integration, communication and increased motivation at work, as employees feel valued for being included in important decision-making.

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During a certain six-year period, the consumer price index (CPI) increased by 35%, but during the next six-year period, it increased by only 10%. Which of these conditions must have existed during the second six-year period?


A. Inflation

B. Depression

C. Deflation

D. Recession

I'll pu the person who answers this brainliest

Answers

Answer:

A. Inflation

Explanation:

CPI is an abbreviation for the consumer price index. The CPI is a measure of the average changes in the prices of consumer goods and services in the economy. The CPI index measures changes in prices of products that represent the general consumption in the economy. Economists use the CPI index to ascertain the rate of inflation.

Inflation is described as the increase in prices of goods and services in the economy in a period. If prices in the economy are increasing at a high rate, the CPI index will be high. A high CPI index indicates the inflation rate is high.

Visit the Web site for a different well-known company, and find the section that lists the company's values. What are the company's values? How do they relate to the products the company sells? Did anything surprise you about the company's values? Why or why not? TIP: If the company's Web site doesn't describe its values, choose a different company. (1-5 sentences

Answers

Visit the Web site for a different well-known company, and find the section that lists the company's values.

I looked through the Microsoft.com company website.

Innovation, diversity and inclusion, CSR, AI, reliable computing, respect, integrity, and accountability are among the core principles highlighted.

Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.

This is not surprising to me because the corporation makes this point in its advertising and other materials.

What are their core values about?

Among the mentioned core values are;

Technology can and should be a force for good, and we believe that significant innovation can and will make the world a better place in both large and little ways.

Diversity and inclusiveness are important to our success. To enlighten, challenge, and push our thinking, we draw on the strengths, experiences, and many points of view of our customers and staff.

AI - Our belief is that AI can enhance your talents, free you up to engage in more creative and strategic activities, and assist you or your organization in achieving more when it is created with humans at the heart.

They acknowledge full accountability for all choices, deeds, and outcomes. Therefore, Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.

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Which defines room and board? (1 point)
O housing and meals that are often provided at additional cost
O a school that provides training in a specific skill or trade
O an educational institution or establishment, in particular one providing higher education
O monetary support that is used to help pay educational costs

Answers

In contrast to a variety of non formal and informal methods of socialization, education is the field that is concerned with the methods of teaching and learning in schools or environments that resemble schools.

What differentiates knowledge from education?

Knowledge and education are not the same thing. Knowledge is what you know, while education is how you learn it. The facts and information you can remember and use is called knowledge. Education is how we learn new things.

Equity and equality in education, what do you mean?

A system of equality treats everyone the same without giving any consideration to their requirements or needs. As a result, equity is a situation in which every person, regardless of their individual differences, receives the same rights and opportunities.

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Answer:

O housing and meals that are often provided at additional cost

Explanation:

“Room” in Room and Board, meaning

The “room” part can be taken literally it’s basically your college bedroom

and Board refers to the meal plan meaning somewhere that supplies food.

Boom easy answer

1. Legal environment of business is what makes the working of the enterprise harmonious. It accumulates every aspect which is remotely concerned with the business firm. The term "Legal Environment of business" relates to the code of conduct of any company.

true
false​

Answers

Answer:

True

Explanation:

It is TRUE that The term "Legal Environment of business" relates to the code of conduct of any company.

The above statement is correct because the Legal Environment of business distinguishes the legal boundaries and the extent of legal plans of a company's executive decisions. It also defines the lawful time and operation of the firm.

Also, it helps in regulating the business activities of a firm, including the roles of the owners, equity shareholders, creditors, debtors, debenture holders, or any third party involved.

Define the standards of internet service provision for customer
service delivery? ( example - etisalat, du)

Answers

An organisation like AT&T, Verizon, Comcast, or Spectrum is an example of an Internet Service Provider (ISP), which offers businesses, families, and even mobile users access to the Internet. ISPs give their consumers access to the Internet through a variety of methods, including copper cable, satellite, and fibre optics.

Customers can access the internet through ISPs, who also offer extra services like email, domain registration, and web hosting. ISPs might also offer various forms of internet connectivity, like fibre and cable. Additionally, connections may be non-broadband or high-speed broadband.

They act as a portal to the Internet, allowing you to conduct online research, shop online, send and receive email, and more. Internet cable service providers are among the many providers that make up an ISP. Wireless Internet Service Providers.

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How is a game restarted if the ball is kicked out of bounds over the goal-line by the defensive team in soccer?

Answers

Answer:

If the ball goes over the goal line (end line), but not into the goal, and was last touched by the attacking team, it is put back into play by the defending team with a goal kick.

What is forms of buisness??

Answers

Answer and Explanation:

Some forms of business are sole proprietorship, partnership, corporation, and s corporation.

"free enterprise" and "________________" are terms for an economy based on private businesses competing for profits in open markets with minimal government regulations.

Answers

Answer:

entrepreneurship for them and

Which of the following best describes the objectives of the Monetary Policy?

a. controlling banks over our currencies
b. controlling household money in circulation
c. controlling the firm's money in circulation
d. managing or manipulating the money supply in the economy

Answers

Answer:

d. managing or manipulating the money supply in the economy

Explanation:

i feel like it's D

Answer:

d. managing or manipulating the money supply in the economy

Which step directly follows "loss of jobs” in the stagflation cycle?

Answers

Answer:

fewer items produced

Explanation:

Answer:

D

Explanation:

the ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Answers

The statement is true that one of the causes of economies of scale is the capacity to disperse fixed costs over a big volume.

There are numerous sources for economies of scale. One of them is the capacity to disperse fixed costs over a sizable volume. The expenses necessary to establish a manufacturing plant, create a new product, and so on are referred to as fixed costs.

Fixed costs are expenses that remain constant regardless of changes in sales or production levels. They aren't directly involved in producing a good or providing a service, hence this is the reason. Fixed expenses are also regarded as the indirect expenses.

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Bought a machine for Rs.100000 from ABC trading concern in account​

Answers

Answer:

whats the question. Please let me know

Explanation:

Betsy owned a speedboat that was not operating correctly. She hired Gail, a mechanic, to determine what needed to be repaired or replaced on the boat. Gail concluded that the boat needed over $5,000 of work to run safely. Upset by the news, Betsy decided to get a second opinion from Kathy, another mechanic. Kathy advised Betsy that the boat only needed a new fuel pump, which cost considerably less than $5,000. Betsy decides to sell her boat instead of repairing it. When a prospective buyer asks Betsy whether the boat has been inspected by a mechanic, she will:_________.

Answers

Answer:

Betsy should simply tell the truth: that the boat was actually inspected by two mechanics, but not only it was not repaired, but both mechanics had a very different diagnosis about what was wrong with the boat.

She should also warn the buyer that the boat likely needs at least a new fuel pump, and in case the diagnostic of the first mechanic (Gail) is true, the boat then would likely need an expensive repair.

when answering requests when a potential sale is involved, what is one of your main goals?

Answers

When answering requests when a potential sale is involved, one of your main goals is to provide relevant information that will help the potential customer make an informed decision.

Your response should aim to address the specific needs and concerns of the potential customer, while also highlighting the features and benefits of your product or service. By providing clear and concise information, you can help the customer understand how your product or service can meet their needs and add value to their business or personal life. Additionally, it is important to be responsive and timely in your communication, as delays or lack of information can lead to lost sales or dissatisfied customers. Ultimately, your goal is to build trust and establish a relationship with the potential customer, which can lead to a successful sale and repeat business in the future.

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What are some ways to make money through investing in real estate?
(12 points: 4 points for each correct answer

Answers

Answer:

Options include:

Short sales—this involves purchasing a home from a lender when the mortgagee is behind on payments. Short sales can be a time-consuming and complicated proposition.

Lease options—these are what the name implies. When you lease with an option to buy in a bull real estate market, where prices are rising, you may be able to complete the purchase later at a lower, pre-set price, or make a profit by selling your purchase rights.

Contract flipping—instead of flipping houses, this type of flipping involves the transfer of the rights of a purchase contract to another buyer. If you can locate distressed sellers and motivated buyers and bring them together, you may be able to make a profit this way.

The Bottom Line

There are several proven strategies for making money in real estate. Appreciation, inflation, and income rank high on the list but several alternative real estate investments also exist. Understanding your investments, risks, and whether the overall process is worth it or not is up to you.

in the supply-demand model, the conclusion that the price will tend to fall when quantity supplied is greater than quantity demanded is an example of a(n) .

Answers

In the supply-demand model, the conclusion that the price will tend to fall when quantity supplied is greater than quantity demanded is an example of inverse relationship between the supply and prices of goods.

How the laws of demand and supply affect prices ?

According to the law of supply and demand, which is a theory of economics, supply and demand are tied to one another and the price of goods and services is influenced by this relationship. A basic tenet of economics is that when there is a surplus of an item or service above what is needed, prices will decline. Prices tend to rise when supply is less than demand.

When demand is unchanged, the link between supply and prices of goods and services is inverse. Prices often decline to a lower equilibrium price and a greater equilibrium quantity of goods and services when the supply of goods and services increases while the demand for those goods and services remains constant.

Prices often increase to a higher equilibrium price and a lesser quantity of goods and services when the supply of goods and services declines while the demand for those goods and services remains constant.

Demand for products and services is inversely correlated with supply. However, when supply is constant but demand is rising, the higher demand drives up the equilibrium price and vice versa.

Up until a price reaches equilibrium, supply and demand fluctuate up and down.

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Some people argue that _____ is the most difficult and most important part of strategic management.
a.SWOT analysis
b.strategic formation
c.strategic execution
d.strategic analysis
e.strategy evaluation

Answers

Some people argue that strategic execution (c) is the most difficult and most important part of strategic management.

The correct option is C.

Strategic execution involves implementing the formulated strategies and ensuring that they are effectively carried out to achieve the organization's goals. This process can be challenging as it requires coordination and collaboration across all levels of the organization, monitoring progress, and making necessary adjustments in response to changing circumstances.

In strategic management, the other options mentioned play vital roles as well. SWOT analysis (a) is a technique used to identify an organization's strengths, weaknesses, opportunities, and threats, while strategic formation (b) is the process of determining the appropriate strategies to pursue based on the analysis. Strategic analysis (d) is the comprehensive evaluation of an organization's internal and external environment to identify strategic issues and opportunities. Lastly, strategy evaluation (e) is the ongoing assessment of the effectiveness of the implemented strategies and their alignment with the organization's objectives.

However, the execution of these strategies is what ultimately leads to the success or failure of the organization. Without proper implementation, even the most well-thought-out strategies can fall short in achieving their intended outcomes. Thus, some people believe that strategic execution is the most difficult and most important part of strategic management, as it is the final step that turns ideas and plans into tangible results.

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A new company has started to become very competitive in your geographic areas. The first step they took was to slash prices. The second was stealing some of your best sales and manufacturing personnel. As a result, they have been able to go down the learning curve a lot faster, thus increasing their overall revenue. In a meeting with some of your people, the idea is brought up that you could increase the competition's costs by tying them up through litigation and state administrative action. Some local government officials owe you favors because your company has made campaign contributions in the past. Some other sources tell you the new company has over extended themselves, meaning their debt/equity ratio is very high. They probably couldn't survive a protracted legal battle or some legislation that's been designed to negatively impact their bottom line and not yours. Many more suggestions are brought up, but the first one is the only one that has a chance of success.
You:__________.

Answers


A new company has started to become very competitive in your geographic areas. The first step they took was to slash prices. The second was stealing some of ...

A customer needs to attach a
A. credit report
to a customer authorization form

Answers

Well, may you elaborate a bit more? I’d be glad to help

She completed her __________ degree in computer science and was hired as a cyber security consultant.

Fill in the blank!

Answers

Answer:

bachelors  //  Cybersecurity with CS degree

Explanation:

bachlors

explanations it fits perfectly in the sentence

What is an account and where is it located in a manual accounting system?

Answers

A manual accounting system is a bookkeeping system for recording business activity transactions, where financial records are kept without using a computer

Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security

Answers

A. It hopes to reduce the amount of money available for lending.

Explanation:

Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.

If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.

Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.

The economic effect that central bank are trying to effect by the process of buying back large amounts of treasury security is bring reduction to amount of money available for lending.

Treasury notes as well as bonds are securities that brings about payment of fixed rate of interest which is usually done every six months till the  security reach a stage of maturity.

The central bank do buy large amounts of treasury security so that the money that can be available for lending can be reduced.

Therefore, this process are put in place to balance the economy.

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which of the following statements is a bottom-line statement

Answers

Answer:

The strong demand in Bigtown would make opening a new salon feasible

Explanation:

Answer:The strong demand in Bigtown would make opening a new salon feasible

Explanation:

Other Questions
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