Tarazi Company issued bonds with a coupon rate of 10% and a face amount of $100,000. The bonds mature in 20 years. The market interest rate for bonds with the same degree of riskiness is 6% compounded annually. These bonds were issued on January 1 of Year 1 at a price of $145,880. Coupon payments are made annually on December 31, so the first coupon payment was made on December 31 of Year 1. Tarazi uses the effective-interest method on its books. The journal entry to record the second coupon payment made on December 31 of Year 2 includes a: Debit to Premium on Bonds of $1,322 Debit to Premium on Bonds of $8,678 Debit to Interest Expense of $8,753 Debit to Interest Expense of $10,000 Debit to Premium on Bonds of $1,247 Credit to Discount on Bonds of $1,247

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

What are two benefits of consumer programs

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations