What we can the Fed do in order to ensure that the financial
system is strong enough to withstand the inevitable bursting of a
bubble?
Answers
The Federal Reserve (Fed) has several measures and tools at its disposal to strengthen the financial system and mitigate the potential risks associated with the bursting of a bubble.
Here are some actions the Fed can take to ensure the financial system's resilience:
1. Monitoring and Surveillance:
- Data Collection and Analysis: The Fed continuously monitors and collects data on various aspects of the financial system, including asset prices, leverage levels, and risk exposures. This helps in identifying potential imbalances and vulnerabilities that could lead to a bubble formation.
- Risk Assessment: The Fed conducts risk assessments to evaluate the potential impact of a bursting bubble on financial institutions, markets, and the overall economy. This assessment aids in understanding the systemic risks and formulating appropriate policies.
2. Regulatory and Supervisory Measures:
- Strong Capital and Liquidity Standards: The Fed establishes and enforces robust capital and liquidity requirements for financial institutions. Adequate capital buffers help institutions absorb losses during a downturn, reducing the risk of systemic instability.
- Stress Testing: The Fed conducts regular stress tests on large financial institutions to evaluate their resilience to adverse economic scenarios, including the impact of asset price declines. This helps identify weaknesses and prompts corrective actions.
- Enhanced Risk Management Practices: The Fed encourages financial institutions to adopt sound risk management practices, including effective risk measurement, monitoring, and mitigation strategies. This promotes a culture of risk awareness and resilience.
3. Policy Tools:
- Monetary Policy Adjustments: The Fed can adjust monetary policy to address financial imbalances and mitigate the formation of asset bubbles. Raising interest rates and tightening monetary conditions can help curb excessive risk-taking and speculation.
- Macroprudential Measures: The Fed can employ macroprudential policies, such as implementing higher capital requirements, limiting excessive leverage, and imposing additional regulatory measures, to address specific risks associated with asset bubbles.
4. Communication and Coordination:
- Public Communication: The Fed communicates its assessments, concerns, and policy intentions to market participants and the public. Clear and transparent communication helps manage expectations, guide behavior, and promote market stability.
- Cooperation with Other Regulatory Authorities: The Fed collaborates with other domestic and international regulatory bodies to share information, coordinate policies, and address cross-border risks. This helps strengthen the global financial system and minimize contagion effects.
To ensure the financial system's strength in the face of an inevitable bursting bubble, the Federal Reserve employs various tools and measures. These include monitoring and surveillance, regulatory and supervisory actions, policy adjustments, and effective communication and coordination. By proactively assessing risks, implementing robust regulations, and taking appropriate policy actions, the Fed aims to enhance the resilience of the financial system and mitigate the potential negative consequences of a bubble's bursting.
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Related Questions
Which of the following are part of the marketing mix? (Check all that apply)
Answers
Answer:
product, price, place, promotion—are often referred to as the marketing mix. These are the key elements involved in marketing a good or service, and they interact significantly with each other.
Explanation:
PLZZ mark brainlyist
What type of pricing is it called when a company charges as much as possible for a product.
-Skim
- Penetration
-Competitive
Answers
The type of pricing called when a company charges as much as possible for a product is Skim pricing.
Skim pricing is a method of pricing where a high price is set for a new or innovative product. This pricing strategy is used by businesses to recoup development and marketing expenses. However, as competitors introduce similar products, the company can gradually reduce the price.
Skim pricing can be an effective pricing strategy because early adopters are willing to pay a higher price for the product, which helps to recoup development costs.
In contrast, penetration pricing is a pricing strategy in which the company sets a low price for a new product to gain a larger market share. It is used to attract buyers away from other companies that offer similar products.
Competitive pricing is a strategy where prices are set based on the prices of competitors. The company tries to maintain a price that is similar to other companies in the same industry. This pricing strategy can lead to a price war if competitors keep lowering their prices to gain a larger market share.
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make a list of things that should be considered while managing a factory or an industry
plz say correct answer not stipude answer
Answers
Get Prototypes Sorted First
Form Positive Working Relationships
Sorting the Premises
Bankrolling the Business
Understand the Legalities
from 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8 if a dozen tangerines cost 0.31 in 1960 and the price of tangerines increase at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen tangerines cost in 1970
Answers
Answer: $0.41
Explanation:
A consumer price index measures the average price changes of goods that are bought by people in an economy. It shows the level of inflation in an economy.
To calculate the cost of a dozen tangerines in 1970we have to know the percentage increase in price index from 1960 to 1970 and this will be:
= [(38.8 – 29.6) / 29.6] × 100%
= (9.2 / 29.6) × 100%
= 31.08%
Let's represent the price of a dozen tangerines in 1970 by X and solve. This will be:
31.08 = (X - 0.31) × 100 / 0.31
Cross multiply
(31.08 × 0.31) = 100X - 31
9.6348 = 100X - 31
100X = 9.6348 + 31
100X = 40.6348
X = 40.6348 / 100
X = 0.46348
X = 0.41
Therefore, the cost of a dozen tangerines in 1970 is $0.41
If you bought 100 shares of Company X at $30 per share, and sold it one
month later at $40 per share, what would be your total profit?
Answers
Answer:
$1,000
Explanation:
Number of shares bought 100 shares
Buying price = $30
Selling price= $40
The total profit will be total sales - total buying costs
=($40 x 100) -($30 x 100)
=$4,000 - $3,000
=$1,000
John has just paid off the full balance of his credit card. What happens to the
debt?
a. John will be paid an interest
b. It is added back to his credit limit to be used again
c. His credit limit will be increased
d. It remains a debt
Answers
Answer:
I think the answer is B. If It's correct please give the brainliest award.
John has just paid off the full balance of his credit card. It is added back to his credit limit to be used again. Thus the correct option is B.
What is a credit card?A credit card is referred to as plastic money that allows an individual to do shopping or buy products above the limit of credit cards by borrowing from the bank.
When an individual paid off the full balance of his credit card. It gives a good impression on the lender and helps in improving the credit rating of an individual and can allow for ease in accessing loans.
When an individual pays off the full balance that amount is added to the account and the credit limit can be used again. when the payment is not made timely the interest will be charged at a particular rate.
Therefore, option B is appropriate.
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Choose the response that accurately completes the following sentence. The refundable portion of the American Opportunity Tax Credit (AOTC) may not exceed __________ of the credit.
10%
20%
40%
50%
Answers
The refundable part of the American Opportunity Tax Credit (AOTC) may not exceed C: 40% of the credit.
The American opportunity tax credit (AOTC) refers to a credit for qualified education expenses paid for an eligible student for the first 4 years of higher education. A student can receive a maximum annual credit of $2,500 and 40% or $1,000 could be refunded if they owe no tax. This credit for eligible students is subject to income limitations.
Therefore, the refundable part of the American Opportunity Tax Credit (AOTC) is restricted to not exceed 40% of the credit.
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refer to scenario 2.2. what type of competitive growth strategy is jessica's manager discussing? a. market penetration b. market development c. product development d. product penetration e. diversification
Answers
Refer to scenario 2.2. the type of competitive growth strategy is Jessica's manager discussing is product development.
New product development (NPD) in business and engineering refers to the entire process of launching a new product, updating an existing product, or launching a product in a new market. Product design, along with many commercial factors, is a key component of NPD. The process of turning a market opportunity into a product that is on the market is known as new product development. An organization can produce cash thanks to the items it develops. Many technology-intensive businesses focus their strategy on taking advantage of technological innovation in a market that is undergoing fast change.
A tangible product is something that can be touched, whereas an intangible one is something like a service or an experience. However, services and other processes are occasionally distinguished from being considered "products." Understanding client needs, market dynamics, and the competitive environment are necessary for NPD.
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A prospective buyer contacts Pam, a broker, about a house on the market. The buyer tells Pam that he does not like Asians, and asks her whether there are many Asians living in the neighborhood. How should Pam answer this question
Answers
If the buyer asks her whether there are many Asians living in the neighborhood. Pam should tell the buyer that: He/she is prohibited by law to discuss racism.
What is racism?Racism can be defined as a form of discriminations that occur among people either because of color, ethnics, age or background.
Based on the given scenario Pam should respond to the buyer by telling the buyer that racism is not allow or prohibited by law and therefore she is not allow to discuss the racial composition of a neighborhood.
Inconclusion the buyer is prohibited by law to discuss racism.
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which of the following is an appropriate policy for the fed to pursue if it wants to increase the money supply? group of answer choices raise the reserve requirement raise the discount rate buy u.s. treasury bills lower taxes
Answers
If the Fed wishes to expand the money supply, it should adopt a policy of lower taxation. Option 4 is Correct.
The Fed has three options for boosting the money supply: bond purchases, a reduction in the reserve requirement ratio, or a reduction in the discount rate. The Fed has three options for reducing the (growth of the) money supply: sell bonds, increase the reserve requirement ratio, or increase the discount rate.
The Fed will boost the money supply by purchasing government bonds, reducing the reserve requirement, and/or hiking the discount rate if it wishes to stimulate the economy (increase aggregate demand). The federal funds rate, other market interest rates, and eventually consumer and company borrowing and spending are all primarily influenced by interest on reserves. Option 4 is Correct.
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Correct Question:
which of the following is an appropriate policy for the fed to pursue if it wants to increase the money supply? group of answer choices
1. raise the reserve requirement
2. raise the discount rate
3. buy u.s. treasury bills
4. lower taxes.
when you graduate and find a place to live on your own, do you expect to rent or buy your home? why?
Answers
The decision to rent or buy a home depends on various factors such as your financial situation, personal preferences, and long-term goals.
Renting offers flexibility and can be a more affordable option for those who don't have a large down payment or don't want to commit to a specific location for an extended period. Additionally, renting may include some amenities such as maintenance, repairs, and utilities.
On the other hand, buying a home can provide long-term financial benefits, such as building equity and potential appreciation in the property's value. It can also offer greater stability, the ability to make customizations and improvements, and the freedom to do what you want with the property.
Ultimately, the decision to rent or buy a home is a personal one and requires careful consideration of your financial situation, goals, and priorities.
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Suppose that the local daily demand for iced coffee drinks is given by the demand function: Q=300-25P, where P is the price of an iced coffee drink.
a. Construct this demand curve in black. Place the quantity of iced coffee drinks demanded on the horizontal axis and the price of an iced coffee drink on the vertical axis.
b. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. What is the new demand function (i.e., equation)?
c. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. Construct the new demand function in blue.
Answers
a. To construct the demand curve, we can first use the demand function provided, Q=300-25P. To plot this on a graph, we can plug in different values of P to find the corresponding values of Q. For example:
When P = 0, Q = 300-25(0) = 300
When P = 1, Q = 300-25(1) = 275
When P = 2, Q = 300-25(2) = 250
We can plot these points on a graph with Q on the horizontal axis and P on the vertical axis, and connect them to form the demand curve.
b. The new demand function would be Q = 250-25P.
c. To construct the new demand function in blue, we can start with the same process as before, using the new demand function, Q = 250-25P.
For example:
When P = 0, Q = 250-25(0) = 250
When P = 1, Q = 250-25(1) = 225
When P = 2, Q = 250-25(2) = 200
We can plot these points on the same graph as before, but this time use blue color to distinguish it from the previous demand function.
chavez corporation reported the following data for the month of july: inventories: beginning ending raw materials $27,000 $30,000 work in process $16,000 $17,000 finished goods $32,000 $47,000 additional information: raw materials purchases $66,000 direct labor cost $91,000 manufacturing overhead cost incurred $59,000 indirect materials included in manufacturing overhead cost incurred $ 8,000 manufacturing overhead cost applied to work in process $58,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the cost of goods manufactured for july is:
Answers
The cost of goods manufactured for July is $219,000.
To calculate the cost of goods manufactured for July, we need to use the following formula:
Cost of Goods Manufactured = Direct Materials + Direct Labor + Manufacturing Overhead + Beginning Work in Process - Ending Work in Process
Direct Materials = Beginning Raw Materials + Purchases - Ending Raw Materials
= $27,000 + $66,000 - $30,000
= $63,000
Direct Labor = $91,000
Manufacturing Overhead = Applied Manufacturing Overhead + Indirect Materials Incurred
= $58,000 + $8,000
= $66,000
Beginning Work in Process = $16,000
Ending Work in Process = $17,000
Now we can calculate the cost of goods manufactured:
Cost of Goods Manufactured = $63,000 + $91,000 + $66,000 + $16,000 - $17,000
= $219,000
Therefore, the cost of goods is $219,000.
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How long after my taxes are accepted will i get them?.
Answers
answer :in less than 21 days
A LLCs file articles of organization with the state to receive formal recognition from the state, but general partnerships typically don't file their partnership agreements. Because sole proprietorships are not treated as legal entities separate from their owners, sole proprietors don't need to do anything to receive legal recognition from the state. Which of the following legal entities file documents with the state to be formally recognized by the state?
A. Limited Liability Company
B. General Partnership
C. Sole Proprietorship
D. None of these
Answers
The correct answer is Limited Liability Company. These are required to file articles of organization with the state in order to receive formal recognition and establish their legal entity status.
This filing provides the necessary documentation and information about the company's structure, ownership, and management to the state authorities. On the other hand, general partnerships typically do not file their partnership agreements with the state to be formally recognized. General partnerships are formed by an agreement between two or more individuals who carry on a business together. While there may be legal requirements for partnerships to operate under certain names or obtain necessary licenses, they generally do not need to file partnership agreements to receive formal recognition from the state. Sole proprietorships, being the simplest form of business organization, do not require any formal filing or documentation with the state for legal recognition. Sole proprietors are not treated as separate legal entities from their owners, so there is no need for formal registration or filing. However, depending on the jurisdiction, sole proprietors may need to comply with local business licensing requirements or register their business name if it differs from their personal name.
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what type of government action is part of fical policy
Answers
7. Jannah is reviewing a report that a new marketing manager put together after assessing her small business. If Jannah wants to learn how familiar a custo
what section of the marketing report should she review?
Answers
To learn how familiar a customer is to the company, Jannah must look at the leads section of the marketing report.
What is a marketing report?It consists of a document through which an organization can visualize its performance over a period of time, through the analysis of data and information about the company's actions and strategies to achieve objectives and goals in the market.
Through qualitative and quantitative reports related to communication and sales, for example, the company is able to make more significant decisions about its strategy, with evaluations and corrections that will contribute to continuous improvement and positioning in the market.
So leads could be the section that Jannah would review to identify a potential customer, as this data significantly demonstrates an individual who engages with the company's business and can be turned into a customer.
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Why would an insurance company charge an inexpensive copay when considering claims that will likely be hundreds or thousands of dollars?
Answers
matty wakes up multiple times over the course of each night because they stop breathing. which sleep disorder is matty most likely to be diagnosed with?
Answers
After careful observation, Matty is most likely suffering from Sleep apnea. keeping the events that occurred in consideration like waking up multiple times over the course of each night due to the reason of a problem in breathing.
Sleep apnea refers to a sleeping disorder in which after an interval of time individual stops breathing in their sleep. If the individual snores at night, or have problems after waking up they are more than likely suffering from this disorder.
So after looking at the symptoms that Matty is showing we can safely say she is suffering from Sleep apnea due the reason of waking up multiple times at night because she suffers problem in breathing.
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You want to create an account for a new user, using the username thor and giving the user a uid of 2019. the command to do this is useradd _______.
Answers
You want to create an account for a new user, using the username thor and giving the user a uid of 2019. the command to do this is useradd 1926 the.
To add/create a new user, you need to specify the 'username' after the 'useradd' or 'adduser' command. "Username" is the user login name that the user uses to log into the system. You can add only one user, her, and this username must be unique (distinct from other usernames already in the system).
Type useradd -h or useradd --help at the command prompt to answer the questions. No home directory is created, regardless of system settings.
Note that useradd will not create home directories for such users, regardless of the default settings in /etc/login. defs (CREATE_HOME). The -m option must be specified when creating home directories for system accounts.
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Attitude is your belief in your own effectiveness.
Т
F
Answers
Answer:
f
Explanation:
this mf emmanuel made me get it wrong. its false bro trust
An optimization analysis is a part of a business model that can be used to determine a particular level of reliability for a given pattern of demand intensity. True False QUESTION 5 Which is not a goal of the business model outputs? a. Determine financial viability b. Better understand the overall economics of the idea c. Determine key marketing initiatives d. Assist in the financial decision making e. None of the above
Answers
The correct answer is option (c) Determine key marketing initiatives.
An optimization analysis is a part of a business model that can be used to determine a particular level of reliability for a given pattern of demand intensity. This statement is false.
Goals of the business model outputs:
The goals of the business model outputs are as follows:
Determine financial viability
Better understand the overall economics of the idea
Assist in the financial decision making
Therefore, the correct answer is option (c) Determine key marketing initiatives.
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The ______ argues that combining location specific assets or resource endowments and the firm's own unique assets often requires FDI.
Answers
Answer:
The eclectic paradigm argues that combining location specific assets or resource endowments and the firm's own unique assets often requires FDI.
What are 4 reasons why you should print, save, or make a copy of your job application???
Answers
Answer:
Be Prepared. Make sure you know the correct names, dates, places and other information you will need
kabelo is looking to purchase stock in hustle bay technology. his best friend is a board member with hustle bay. kabelo asks his friend to verify rumors of a potential merger hustle bay is considering. the friend apologizes and tells kabelo that he is unable to share anything with him. if the friend had shared this information, it would most likely have been classified as
Answers
Kabelo is looking to purchase stock in hustle bay technology. If the friend had shared this information, it would most likely have been classified as Insider Trading.
Option B is correct .
Insider trading :Trading in securities with information that is not generally available to the public is known as insider trading. Insider trading results in this situation. Insider trading involves employees trading in the stock or other securities of a public company with materially confidential information about the company. Depending on the time the insider makes the trade and the country's laws, insider trading can be legal or illegal.
Why is insider trading unethical and what does it mean?Apart from being associated with fraud or breach of fiduciary duty, insider trading is the practice of making financial investments using information that other people are unaware of. Since these actions have an unfair impact on others, it is evident that they should be regarded as morally reprehensible.
Question is incomplete, missing option are given below :
kabelo is looking to purchase stock in hustle bay technology. his best friend is a board member with hustle bay. kabelo asks his friend to verify rumors of a potential merger hustle bay is considering. the friend apologizes and tells kabelo that he is unable to share anything with him. if the friend had shared this information, it would most likely have been classified as
A. Underwriting
B. insider trading
C. capital gains
D. whistle blowing
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NEED HELP
Employees usually have options for how they will be paid. Most employers offer either a
BLANK or BLANK
, but there are also cases where employees are paid in BLANK
Answers
Hope this helps! :)
Statement-McMorrow &
3. Cash Flow
Daughter Ltd
From the following information relating to McMorrow & Daughter Ltd, prepare
a cash flow statement for the four months January to April. Opening cash on 1
January is €3,700. X
Estimated income
• Sales: January €12,800; February €14,100; March €13,900; April €18,750
. Government grant: February €3,000
Estimated expenditure
• Purchase of materials: January €12,000; February €14,000; March €11,300;
April €14,300
Rent and rates: €1,600 per month
• Wages: €1,500 per month
• Telephone: February €300; April €450
61.000 in March answer pls
Answers
The net cash inflow for the period was €12,100 and closing cash balance at the end of April was €15,800.
What is a cash balance?A cash balance refers to the amount of money that a person, organization, or entity has in their possession or available to them at a given time. This can include physical currency, such as bills and coins, as well as digital forms of payment, such as bank account balances or cryptocurrency holdings. Cash balances are important for financial planning and management, as they can be used to cover expenses, pay debts, invest in assets, or save for future goals. It is important to monitor cash balances regularly to ensure that there is enough liquidity to meet financial obligations and take advantage of investment opportunities. Balancing cash inflows and outflows is essential for maintaining financial stability and achieving long-term financial success.
Net Cash Inflow: €12,100
Closing Cash: €15,800
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Which is an example of a small business showing social responsibility to individuals within the company?
A. starting an office recycling program
B. developing sustainable business practice
C. donating money to local organizations
D. allowing employees to work from home
Answers
Starting an office recycling program, developing sustainable business practice and donating money to local organizations are examples of a small business showing social responsibility to individuals within the company.
Company have a social responsibility to the communities in which they operate. This includes ensuring that they are good corporate citizens, providing support for local causes and charities, and protecting the environment.
Sustainable business is a term that is often used to describe businesses that are environmentally friendly or that have a positive social impact.
Hence, the correct options are "A, B & C".
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why is saving, spending and investing important? long summary
Answers
Hope this helps
Who will win the elections
Joe Biden
or
Donald Trump
Answers
Answer:
Joe already won
Explanation:
Answer:
joe biden
Explanation: