Advantages of open market operations

Assignment Help Business Economics
Reference no: EM131392556

1. All of the following are advantages of open market operations (OMO), EXCEPT:

A. OMO are flexible in regard to amounts bought and sold

B. OMO are easily reversible

C. OMO are slow to impact bank reserves

D. The Fed has complete control over OMO.

2. Intermediate targets of monetary policy are:

A. under the direct control of the Fed.

B. Are not under the direct control of the Fed but are affected by operating instruments.

C. are always a monetary target.

D. are the goals of monetary policy.

3. If an individual is concerned only about the time value of money, which of the follow options would s/he prefer?

A. $1000 today.

B. $2000 in 5 years, assuming an annual interest rate of 10%.

C. $2500 in 7 years, assuming an annual interest rate of 10%.

D. $1200 in one year, assuming an annual interest rate of 5%.

4. A business is considering buying a machine with an upfront cost of $10,000, but with an annual revenue stream of $2,000. In order to have a positive IRR, this machine would need to be in use for

A. over 5 five years.

B. between 2 and five years.

C. less than 2 years.

D. at least 10 years.

Reference no: EM131392556

Questions Cloud

List general methods used to guard known tub grinder hazards : The control of hazardous energy (lockout/tagout), and 29 CFR 1910.145, Specifications for accident prevention signs and tags. Write several paragraphs explaining how each regulation would apply to a tub grinder.
The competitive equilibrium for an exchange economy : Consider the competitive equilibrium for an exchange economy. If the endowment of each person increases by 10% for each good, everyone is better off at the new competitive equilibrium since everyone consumes more of each good.
Human capital analysis of this potential investment : Suppose you are about to complete a bachelor’s degree in your chosen major and are considering investing in a law degree. Explain the data you would need and the methods of analysis you would use in order to conduct a human capital analysis of this p..
What conveyor speed is needed to get a flow : A grain conveyor system finds the weight on a 1.0-m platform to be 258 N. What conveyor speed is needed to get a flow of 5200 kg/h?
Advantages of open market operations : All of the following are advantages of open market operations (OMO), EXCEPT: Intermediate targets of monetary policy are: A business is considering buying a machine with an upfront cost of $10,000, but with an annual revenue stream of $2,000. In orde..
List possible causes of the accident : He sustained injury to his finger as a result of the accident. From your viewpoint, address the issue of whether the incident treadmill was reasonably safe. Also, list possible causes of the accident.
Calculate the expected time delay for grain levels : Calculate the expected time delay for grain levels between 1 m and 9 m.- Use one-shot pulse generators, flip/flops, and any other digital logic devices to complete the design shown in Figure.
Which of the following is not one of the forms : In this culture, preference is given to friends when hiring, contracting, procuring and sharing business opportunities. Family is also very important and trustworthiness is often gauged by the level of loyalty and attention one devotes to their fa..
Which one of the will not offset fiscal policy : Which one of the following will not offset fiscal policy? Which of the following can correctly help to explain why US government budget deficits can be directly related to US trade deficits? Suppose that the govenment initially had a balanced budget ..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the theory of the consumer about

What is the Theory of the Consumer about? How would you distinguish Utility from Marginal Utility of a good? What Forecasting demand means? Give an example.

  What would this do to effective rate of protection

If extension of provisions is made to final goods but not to intermediate goods, what would this do to effective rate of protection (ERP) for country provided by its tariff schedule.

  Classical economists believe about macroeconomic policy

What role do monetarists believe the government should play in the economy and why? After that has been discussed, what Keynesian and New classical economists believe about macroeconomic policy? Which role of thinking do you think you would fit in?

  Describe potential capital expenditure project

Describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an appr..

  Explain why an industry in a perfectly competitive market

Explain why an industry in a perfectly competitive marketplace would choose to remain in business, if its profit is zero at equilibrium.

  Xplain how much you value your life

Suppose that you are indifferent in between se designations, save for differential risk of death, and illustrate what does your willingness to pay for these vacation tells you about Explain how much you value your life.

  Same profit-maximizing price where marginal revenue equals

When price discrimination occurs, the producer's profit is _____ if the producer charges each customer the same profit-maximizing price where marginal revenue equals _____ cost. Airlines that engage in price discrimination charge higher prices to bus..

  Marge opens an oxygen bar in a building she owns

Marge opens an oxygen bar in a building she owns. She utilized to rent the building to her brother in law.

  What change in the money supply

Suppose you are given a money supply model where r = 0.1, e = 0.2, and c = 0.4. What is the money multiplier? What change in the money supply will result from an open market sale of $400,000?

  Capital-labor until marginal rate of technical substitution

According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..

  Increased rate of money printing

It was top news a week ago that Bank of Ukraine increased its rate to 30%. And the news said they did this to fight inflation. But I don't understand one thing: isn't the increased rate of "money printing" of the central bank only aggravates the prob..

  Calculate elasticity in the following cases

a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently, the demand for the product is raised from 20,000 units to 25,000 units. Calculate the price elasti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd