Answer:
C. Get into critical country markets quickly and accelerate the process of building a potent global presence, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations
Explanation:
In a global market it is important for businesses to leverage international advantages such as lower production cost in a foreign country, more lucrative markets in certain locations, and access to cheap materials for production.
So when a company wants to gain global dominance it is important they form alliances with companies in foreign countries. This will help them access more lucrative markets, gain knowledge about particular markets, and gain competencies that are unique to a geographical area.
In the context of human resource management challenges, which of the following statements is true of women workers?A) Many professional women step out of the workforce early to start their own companies.B) Their work schedules are more flexible than their male counterparts'.C) They are not usually willing to pay dues.D) Women employees cannot be retained with flextime benefits.
Answer: A) Many professional women step out of the workforce early to start their own companies.
Explanation:
There are several human resource management challenges such as compliance with organization rules and laws, adaptation to innovation, recruitment challenges etc.
In the context of human resource management challenges, the most likely true option is that many professional women step out of the workforce early to start their own companies. Unlike their male counterparts who can stay for a very long time, the reverse is usually the case with women.
The work within one state of a team's Kanban board is being completed at varying times, sometimes running faster and sometimes slower than the next state. What could resolve this issue
Answer:
A buffer state should be put in place between the two states to resolve this issue
Explanation:
A buffer would function such that when it is fast it won't be use but when it is slow a big portion of it is engaged or used balance the time
What is business analytics defined?
Answer:
Business analytics is the process of collating, sorting, processing, and studying business data, and using statistical models and iterative methodologies to transform data into business insights. The goal of business analytics is to determine which datasets are useful and how they can be leveraged to solve problems and increase efficiency, productivity, and revenue.
Explanation:
suppose the real rate is 1.9 percent and the inflation rate is 3.1 percent. what rate would you expect to see on a treasury bill?
Answer:
12.48%
Explanation:
The real rate is 1.9%
= 1.9/100
= 0.019
The inflation rate is 3.1%
= 3.1/100
= 0.031
Therefore the rate on the treasury bill can be calculated as follows
= (1+0.031)(1+0.019)-1
= (1.031×1.019)-1
= 1.1248-1
= 0.1248×100
= 12.48%
Hence the rate that is expected to be seen on the treasury bill is 12.48%
Task 1: At December 31, 2019, House Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2020, the company had the following transactions related to receivables: Sales on account $3,700,000 Sales returns and allowances 50,000 Collections of accounts receivable 2,810,000 Write-off s of accounts receivable deemed uncollectible 90,000 Recovery of bad debts previously written off as uncollectible 29,000 Instructions Prepare the journal entries to record each of these fi ve transactions. Assume that no cash discounts were taken on the collections of accounts receivable. Enter the January 1, 2020, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. Prepare the journal entry to record bad debt expense for 2020, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000. Compute the accounts receivable turnover for 2020 assuming the expected bad debt information provided in c. Task II: Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Nike and adidas. Nike adidas Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions: Calculate the accounts receivable turnover and average collection period for both companies. Comment on the difference in their collection experiences
Answer
The answer is 22
Explanation:
because its so mad
tock has had returns of 16 percent, 23 percent, 15 percent, −11 percent, 30 percent, and −5 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
Answer: arithmetic Average Return =11.33%
Geometric Average Return=10.33%
Explanation:
Returns per year
Year 1 16%
year 2 23%
year 3 15
year 4 -11%
year 5 30 %
year 6 -5%
Total = 68%
Arithmetic Average = Total returns 0f ( year 1 -6) / number of years
= 68%/6 =11.33%
Geometric Average Return is given as
= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1
((1 + 16%) × (1 + (23%)) × (1 + 15%) x (1+ -11%) x (1+30%) x (1+ -5%))^1/6 - 1
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x (0.95)) ^1/6
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x 0.95)) ^1/6 -1
(1.8035073 )^1/6 - 1
= 1.10328 -1 = 0.10328 x 100 = 10.328% =10.33%
Gelb Company currently manufactures 42,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $84,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 42,000 units and buying 42,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?
Answer:
It is more convenient to buy the component.
Explanation:
Giving the following information:
Production costs:
Variable costs are $6.25 per unit
fixed costs related to making this component are $87,000 per year
The company is considering buying this component from a supplier for $3.70 per unit.
We will take into account only the avoidable costs.
Make in-house:
Total cost= 6.25*42,000 + 87,000= $349,500
Buy:
Total cost= 42,000*3.7= $155,400
It is more convenient to buy the component.
Formulating Financial Statements from Raw Data
Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2016 ($ millions):
Revenue $16,563.1 Cost of goods sold $10,733.6
Cash from operating
activities 2,629.8 Cash, ending year 763.7
Cash, beginning year 334.2 Total liabilities 16,405.2
Stockholders' equity 5,307.1 Cash from investing a
ctivities 93.4
Non-cash assets 20,948.6 Total expenses (other
than cost of goods sold) 4,092.7
Cash from financing activities (2,293.7)
Cash from financing activites includes the effects of foreign exhange rate fluctuations.
A) Prepare the income statement, the balance sheet, and the statement of cash flows for General Mills for the fiscal year ended May 29, 2016.
General Mills, Inc.
Income Statement ($ millions)
For Year Ended May 29, 2016
Revenue
Cash, ending yearTotal expensesCost of goods soldNon-cash assets
Gross profit
Cash, ending yearTotal expensesCost of goods soldNon-cash assets
Net income
General Mills, Inc.
Balance Sheet ($ millions)
May 29, 2016
Cash Total liabilities
Cash, beginning yearNon-cash assets
Stockholders' equityNet income
Total assets Total liabilities and equity
General Mills, Inc.
Statement of Cash Flows ($ millions)
For Year Ended May 29, 2016
Cash from operating activities
Non-cash assetsNet incomeCash, beginning yearCash from investing activities
Cash from financing activities
Net change in cash
Noncash assetsNet incomeCash, beginning yearCash from investing activities
Cash, ending year
B) Does the negative amount for cash from financing activities concern us? Explain.
1) A negative amount for cash from financing activities implies that the company is unable to pay its debts as they come due and should be interpreted negatively.
2) A negative amount for cash from financing activities is the result of additional borrowings. Because the additional funds are invested in earnings-generating assets, this should be viewed positively.
3) A negative amount for cash from financing activities implies that the market value of the company's long-term debt has declined and this change should be viewed negatively.
4) A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company’s ability to retire debt obligations.
C) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity):
i) Profit margin
ii) Asset turnover
iii) Return on assets
iv) Return on equity
Answer:
General Mills, Inc.
A1: General Mills, Inc.
Income Statement ($ millions)
For Year Ended May 29, 2016
Revenue $16,563.1
Cost of goods sold 10,733.6
Gross profit 5,829.5
Total Expenses 4,092.7
Net income $1,736.8
A2: General Mills, Inc.
Balance Sheet ($ millions)
May 29, 2016
Cash $763.7
Non-cash assets 20,948.6
Total Assets $21,712.3
Total liabilities 16,405.2
Stockholders' equity 5,307.1
Total liabilities & equity $21,712.3
A3: General Mills, Inc.
Statement of Cash Flows ($ millions)
For Year Ended May 29, 2016
Cash from operating activities $2,629.8
Cash from investing activities 93.4
Cash from financing activities (2,293.7)
Net change in cash $429.5
Cash, beginning year 334.2
Cash, ending year 763.7 $429.5
B. Negative amount for cash from financing activities:
4) A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company’s ability to retire debt obligations.
C) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity):
i) Profit margin
= Net Income/Revenue * 100
= $1,736.8/$16,563.1 * 100
= 10.48%
ii) Asset turnover
= Revenue/Average Assets
= $16,563.1/$21,712.3
= 0.76
iii) Return on assets
= Net Income/Assets * 100
= $1,736.8/$21,712.3 * 100
= 8%
iv) Return on equity
= Net Income/Equity * 100
= $1,736.8/$5,307.1 * 100
= 32.73%
Explanation:
i) Profit margin is a financial performance measure that shows the amount of revenue that is not spent as cost of goods sold and expenses.
ii) Asset turnover is a financial performance measure that shows how assets have been utilized to generate sales.
iii) Return on assets is also a financial performance measure that shows the percentage of profits that have been made from the use of the assets for the period.
iv) Return on equity is also a financial performance measure that the percentage of profits when compared with the equity of stockholders.
During its first month of business, Kochanski Company reported net cash flows from operating activities of $5,000, net cash flows from investing activities of ($10,000), net cash flows from financing activities of $50,000. What was the net increase in cash
Answer:
Net cash increase is $45000.
Explanation:
Net cash flow from (OA) operating activity = $5000
Net cash flow from (I) investing = $10000
Net cash flow from (F) financing activity = $50000
Net cash increase = Operating activity cash flow + Financing activity cash flow - Net cash flow from investing
Net cash increase = 5000 + 50000 – 10000
Net cash increase = 45000
Think of a time when effective or ineffective communication affected your success at home, school, or work.In paragraph 1, describe what happened, in detail.
In paragraph 2, explain how strong communication contributed to or could have improved the situation’s outcome?
Answer:
Explanation:
How ineffective communication can affect your success at home, school, or work
1. At home, ineffective communication can build hatred among family members. One person doesn't have to do something offensive before hatred is thrown at him or her. An inactivity (something person A expects or expected of person B but that person B didn't do) could cause some feud and transfer of aggression from person A to person B.
Person A is/was supposed to out-rightly tell the problem to person B, instead of getting upset that person didn't notice his/her sore mood.
(b) In the case of safety, members of a home should let one another know their movements, even if they don't say the exact destination.
2. At school, there are teachers, students and administrators. A wise student (especially at the higher education level) should communicate with classmates so as to find out information from the lecturer or teacher and ensure he/she is on track. Every student should also communicate with teachers and administrators (either directly or through their parents), in order to know new rules and regulations, as well as news.
3. At work, interpersonal communication skills are necessary for survival. Emotional intelligence or endurance of staff, boss, and consumer characters is key. All feelings shouldn't be made obvious, including feelings of excitement. Moves such as moves to leave the company, should be kept private.
Statement of Cash flows Non-cash Not Reported Investing & on Statement Operating Investing Financing Financing or in Notes Activities Activities Activities A. Declared and paid a cash dividend X B. Recorded depreciation expense X C. Paid cash to settle long-term note payable XD. Prepaid expenses increased in the year X E. Accounts receivable decreased in the year X F. Purchased land by issuing common stock X G. Inventory increased in the year XH. Sold equipment for cash, yielding a loss XI. Accounts payable decreased in the year X J. Income taxes payable increased in the year XIndicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s).
Answer and Explanation:
The classification is shown in the attachment. Please find the attachment below:
As we know that
Operating activities refers to the activities in which the changes with respect to the working capital is recorded
Investing activities refers to those activities in which the purchase and sale of long term assets are recorded
And, the last one is financing activity which deals with the stockholder equity account i.e issuance of the stock, cash dividend paid, etc
The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of __________________.
Answer:
opportunity cost
Explanation:
The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.
Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.
Therefore, the right answer is Opportunity cost.
The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $977 and the par value is $1,000. What is the invoice price?
Answer:
$997.37
Explanation:
For computing the invoice price first we have to determine the accrued interest which is shown below:
Accrued interest is
= Par value × coupon rate × remaining months ÷ total months
= $1,000 × 6.11% × 4 months ÷ 12 months
= $20.37
Now
Invoice price is
= Clean price + Accrued interest
= $977 + $20.37
= $997.37
A price range at which technicians would expect a substantial increase in the demand for a stock is called
Answer:
Support level.
Explanation:
A support level is the price level at which an asset would not fall beneath for an amount of time.The support level is formed by buyers going into the market anytime the asset falls down to a lower price. We can do a chart of the support level by drawing a line along the lowest level for that time period in consideration
the retained earnings account has a credit balance what is the correct closing entry for the expense accounts
Answer: A. Debit Income Summary $41,300; credit Expense accounts $41,300.
Explanation:
The Income summary account allows for closing entries to be done related to the company income. Revenue is to be credited to the account so that it increases at the end of the period.
Expenses are to be debited to reflect that they are reducing the balance on the Income summary account and should be credited to the expenses account to show that the expenses are being transferred from the expense account to the income summary account.
Fayol's Principles of Management provide an accurate description of what managers actually do on the job.
a) true
b) false
Answer:
b) false
Explanation:
This statement is false, because Fayol's management principles were an administrative methodology that provided for observing the facts of an organization and the experiment, being therefore principles that are unable to provide an accurate description of what managers do in the job.
Its management principles consist of: Division of Labor, authority, discipline, management unit, control unit, Subordination of individual interests to the common good, remuneration, centrality, hierarchy, order, equity, stability, initiative and team spirit.
He believed that this set of principles would lead to more effective management where the company would achieve greater efficiency through structural organization and the control and monitoring of functions.
A _____, identified by Michael Porter, helps organizations make their products and services distinct from their competitors.
Answer:
differentiation strategy
Explanation:
Differentiation of goods is the process by which a producer makes his goods different from that of competitors in a bid to attract customers and increase sales.
For example, a firm in the beauty industry can differentiate itself from other firms in the industry by claiming to make it products using only organic ingredients. This would attract customers because it would indicate that the company's product is more healthy
Our company manufactures and sells calculators for $80 each. A major University has offered us $55 per calculator for a one-time order of 500 calculators. Our costs to manufacture a calculator include: direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead, $15 per unit; and fixed manufacturing overhead, $12 per unit. Assume that we have excess capacity and the special order will not affect regular sales. What is the change in operating income that would result from accepting this special sales order?
Answer:
Effect on income= $2,500 decrease
Explanation:
Giving the following information:
A major University has offered us $55 per calculator for a one-time order of 500 calculators.
direct materials= $25 per unit
direct labor= $20 per unit
variable factory overhead= $15 per unit
Because there is an unused capacity and it is a special offer, we will not take into account the fixed costs.
Unitary cost= 25 + 20 + 15= $60
Effect on income= 500*(55 - 60)
Effect on income= $2,500 decrease
The elements of job design involve:______.
a. task analysis
b. worker analysis
c. environmental analysis
d. all of the above
Answer:
a task analysis
Explanation:
Task analysis is the process of learning about ordinary users by observing
them in action to understand in detail how they perform their tasks and
achieve their intended goals.
A negative cash flow to owners indicates that a firm has ________. Question 3 options: borrowed more money. sold additional shares of stock. incurred net losses and is facing financial distress. issued dividends while maintaining a constant number of outstanding shares of stock
Answer: Issued dividends while maintaining a constant number of outstanding shares of stock
Explanation:
A negative cashflow is meant to indicate that cash has left the company. If this is in relation to the owners then it either means that the company has repurchased shares or paid out dividends.
From the options, the correct answer would be that the company issued dividends while maintaining a constant number of outstanding shares of stock. This would be reflected in the Financing section of the Cashflow statement.
When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):___________
A. increase in the demand for gasoline.
B. decrease in the demand for gasoline.
C. increase in the supply of gasoline.
D. decrease in the supply of gasoline.
Answer:
C. increase in the supply of gasoline.
Explanation:
The prices of petroleum products are very sensitive to demand and supply. Petroleum products usually have their prices go up when supply is short, or when demand is high. When there is a decrease in the demand for petroleum products, or an increase in the supply, the value drops, and the price declines.
Answer:
c
Explanation:
Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days
Answer:
$2.0384
Explanation:
Calculation for how many dollars will a pound buy in 30 days
How many dollars will a pound buy =1.82 x (1+0.12)
How many dollars will a pound buy=1.82× 1.12
How many dollars will a pound buy= $2.0384
Therefore the amount of dollars that a pound will buy in 30 days will be $2.0384
An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and the inventory holding cost is 30%. Orders are placed at a cost of $40 each, including preparation time and communication charges, and the lead time is 2 days. a. Find the optimal order quantity. b. What is the reorder point
Answer:
a. 295 boxes
b. 100 boxes
Explanation:
The level at which ordering and storage costs are at minimal is known as the optimal order quantity.
optimal order quantity = √(2×Annual Demand×Ordering Cost per Order) / Holding Cost per unit
Therefore,
optimal order quantity = √((2×250×52×$22) / ($22 × 30%))
= 294.39 or 295 boxes
Reorder point is the point at which the order should be placed to obtain additional inventories.
Reorder Point = Lead Time × Usage during the lead time
Therefore,
Reorder Point = 2 days × (250 boxes ÷ 5 days)
= 100 boxes
The optimal order quantity is 295 boxes and the reorder point is 100 boxes.
From the information given, the optimal order quantity will be:
= √(2 × Annual Demand × Ordering Cost per Order) / Holding Cost per unit
= √[(2×250×52×$22) / ($22 × 30%)]
= 295 boxes
The Reorder Point will be calculated thus:
= Lead Time × Usage during the lead time
= 2 days × (250 boxes / 5 days)
= 100
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Carter Motor Company, claims that its new sedan, the Libra, will average better than 23 miles per gallon in the city. Assuming that a hypothesis test of the claim has been conducted and that the conclusion is to reject the null hypothesis, state the conclusion:__________.
a. There is sufficient evidence to support the claim that the mean is less than 23 miles per gallon.
b. There is not sufficient evidence to support the claim that the mean is less than 23 miles per gallon.
c. There is sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
d. There is not sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
Answer: c. There is sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
Explanation:
When doing a research, there are 2 Hypothesis one must come up with which are the Null Hypothesis and the Alternative hypothesis.
The Null Hypothesis should state that there is no relationship between the variables which in this case would mean that new sedan, the Libra, will not average better than 23 miles per gallon in the city.
The Alternative Hypothesis on the other hand affirms the belief of the researcher which in this case is that new sedan, the Libra, will average better than 23 miles per gallon in the city.
As the null hypothesis was rejected by the evidence, it means that indeed the Libra mean is greater than 23 miles per gallon.
James sells blank aluminum cans for soda manufacturers to fill and label. James would be classified as a(n):
Answer: E. industrial products salesperson.
Explanation:
Blank aluminium is used in the production of many goods such as cars and planes and as such is yet to be converted for final use for the consumer which makes it an industrial good to be sold to industries.
James as a sales person for blank aluminium will therefore qualify as an industrial products salesperson.
Quentin's December 31, 2013, inventory T-account debit balance was $56,000. During 2014, its inventory purchases amounted to $25,000, and there were no inventory-related write-downs or losses. What was Quentin's 2014 cost of goods sold expense?
Quentin Company
Balance Sheet as of December 31,2014
Assets Liabilities
Current Assets Current Liabilities
Cash $42,000 Accounts payable 30,000
Inventory $36,000 Short-term debt 42,000
Prepaid expense 12.000 Total current liabilities 72,000
Total current assets90,000
Non-current Liabilities
Bond payable 34,000
Plant and equipment
(net) 56,000 Owner's Equity
Patent (net) 24,000 Common stock 20,000
Total Assets $170,000 Retained earnings 44,000
Total Liabilities and
Owners Equity $170.D00
a. $5,000.
b. $67,000.
c. $20,000.
d. $45,000.
Answer:
Quentin's 2014 cost of goods sold expense is d. $45,000
Explanation:
Cost of Sales is a line item that is found in the trading account and can be determined as follows :
Cost of Sales Calculation
Opening Inventory $56,000
Add Purchases $25,000
Less Closing Stock ($36,000)
Cost of Goods Sold $45,000
What is a client's total return on his portfolio after one year if he invests $10,000 in each of three stocks, X,Y, and Z
Answer:
The total return on the clients portfolio after one year is $0.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
What is a client's total return on his portfolio after one year if he invests $10,000 in each of three stocks, X,Y, and Z? He received $200 in dividends from company X, no dividend from company Y, and $300 in dividends from company Z. After one year the stock price of company X has increased 10%, the stock price of company Y has decreased 15%, and the stock price for company Z has remained unchanged and all three stocks are sold by the client.
[A] 0%
[B] 1.6%
[C] 3.3%
[D] 5.0%
The explanation of the answers are now given as follows:
Total return on a portfolio refers to the addition of dividends received and capital gains minus the capital losses from the stocks in the portfolio.
For this total return can be calculated as follows:
Total dividends received = Dividend from stock X + Dividend from stock Z = $200 + $300 = $500
Capital gains from Stock X = Amount invested in X * Percentage of appreciation = $10,000 * 10% = $1,000
Capital loss from Stock Y = Amount invested in Y * Percentage of decrease = $10,000 * 15% = $1,500
Therefore, we have:
Total return = Total dividends received + Capital gains from Stock X - Capital loss from Stock Y = $500 + $1,000 - $1,500 = $0
Therefore, the total return on the clients portfolio after one year is $0.
________ is an underlying assumption of cost-volume-profit analysis. A : All units produced are either sold or in ending inventory B : The behavior of both costs and revenues is curvilinear throughout the entire range of the activity index C : All costs can be classified as either variable or fixed with reasonable accuracy D : Changes in activity and other factors affect costs
Answer:
C : All costs can be classified as either variable or fixed with reasonable accuracy
Explanation:
Cost volume profit analysis (CVP) makes the following assumptions when it is used to determine how any change in costs can affect income:
costs can be classified as fixed or variable, and they are constantrevenues are linear with a given rangeall units produced are soldcosts will only change if output changes"Differences in income inequality between countries of similar income levels can primarily be attributed to:"
Answer:
skills biased technical change
Explanation:
the options were missing, so I looked for them:
Skills biased technical change takes place when skilled workers are favored over unskilled ones. This happens because the country's productive system requires a lot of skilled workers.
Income inequality is not generally the result of how intelligent a society or a person is, but instead where they are or where you were born. Humans have the capability of learning and prospering, but no one can do it all by themselves.
For example, rich countries that base their economies on exporting raw materials like Qatar have a very high GDP per capita ($69,688), but around 70% of the country's wealth is held by 10% of the population. Actually, the remaining 90% can be considered poor and live under very bad conditions. But Qatar's economy is based solely on exporting oil, it barely produces anything else.
Suppose that the Federal Reserve wants to target a higher interest rate, the Federal Reserve would then:
Answer:
if the FED wants to increase interest rates, it will generally engage in a contractionary monetary policy. This means that it will decrease the money supply in the economy. A contractionary monetary policy takes place when the FED starts to sell US securities and that way it will take away money from the economy. But in order to make more people want to purchase the securities, it will generally increase the interest rates.
Explanation: