Question
1. Explain how the Federal Reserve changes the money supply in the United States through open market operations. If the Fed wants to increase interest
1. Explain how the Federal Reserve changes the money supply in the United States through open market operations. If the Fed wants to increase interest rates, would it buy or sell government securities? Explain your answer. (LO 5-4)
2. This morning Sophie sold 500 shares of Multiface Consulting for $75.60 per share. She purchased the stock for $70 one year ago. During the time she held the stock, Sophie received two dividend payments; one dividend payment was $1.00 per share and the other dividend payment was $1.10 per share. What yield (rate of return) did Sophie earn on her investment for the year she held the Multiface stock? (LO 5-1)
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