Answer:
yes it can be and no they shouldn't be.
Explanation:
yes, even though unlikely to happen it is possible to do something (write,play or invent etc) and not be aware that that already exsists. And it is not your fault for making something that you did not know is already made.
The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation
A. causes an inflow of funds for the replacement of assets.
B. reduces reported net income of the period but does not involve an outflow of cash for that period.
C. is a direct use of cash.
D. reduces reported net income and causes an inflow of cash.
Answer: B. reduces reported net income of the period but does not involve an outflow of cash for that period.
Explanation:
Depreciation is the wear and tear of an asset due to the use of the asset. When an asset is depreciated, such an asset is eventually sold at a scrap value.
The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation reduces reported net income of the period but does not involve an outflow of cash for that period.
Selected information from Dinkel Company's 2011 accounting records is as follows: Proceeds from issuance of common stock $ 400,000 Proceeds from issuance of bonds 1,200,000 Cash dividends on common stock paid 160,000 Cash dividends on preferred stock paid 60,000 Purchases of treasury stock 120,000 Sale of stock to officers and employees not included above 100,000 Dinkel's statement of cash flows for the year ended December 31, 2011, would show net cash provided (used) by financing activities of
Answer:
Cash flow from financing activities is $2,040,000
Explanation:
Cash flow from financing activities
Inflows
Proceeds from common stock $400,000
Proceed from common stock(Employees) $100,000
Issuance of bonds $1,200,000 $1,700,000
Outflows
Cash dividend on common stock $160,000
Cash dividend on preferred stock $60,000
Purchase of treasury stock $120,000 340,000
Cash flow from financing activities $2,040,000
You sell one IBM July 90 call contract for a premium of $4 and two puts for a premium of $3 each. You hold the position until the expiration date, when IBM stock sells for $95 per share. You will realize a ______ . A. $300 profit B. $100 loss C. $500 profit D. $200 profit
Answer: C. $500 profit
Explanation:
The total premium you will receive from selling both bearing in mind that contracts are per 100 each will be;
= (Call Premium + Put Premium) * 100
= (4 + ( 3 * 2)) * 100
= $1,000
As the prices went up, the only option that will be exercised will be the call option. The loss made when this happens will be;
= ( New Stock price - Exercise price) * 100
= ( 95 - 90) * 100
= $500
Total Profit (loss) made = Premium - loss
= 1,000 - 500
= $500
A service station uses 1,200 cases of oil a year. Ordering costs is $40 and annual carrying cost is $3 per case. The station owner has specified an annual service level of 99%. A. What is the optimal order quantity? B. What level of safety stock is appropriate if lead time demand is normally distributed with a mean of 80 cases and a standard deviation of 6 cases?
Answer:
a) 179 cases
b) 14 cases
Explanation:
EOQ = √(2SD/H)
D = annual demand = 1,200
S = order cost = 40
H = holding cost per unit = 3
EOQ = √[(2 x 1,200 x 40)/3] = 178.89 = 179 cases
z for 99% service level = 2.33
safety stock = 2.33 x 80 x (6/80) = 13.98 - 14 cases
Runyon Incorporated reported the following results from last year’s operations: Sales $ 16,800,000 Variable expenses 12,230,000 Contribution margin 4,570,000 Fixed expenses 3,394,000 Net operating income $ 1,176,000 The company’s average operating assets were $7,000,000. Last year's turnover was closest to:
Answer:
2.4
Explanation:
Turnover is a concept in accounting that calculates how quickly a business conduct its operation.
The equation below will be used to calculate the turnover.
Turnover = Sales / Average operating assets
= $16,800,000 / $7,000,000
= 2.4
There are five jobs in a factory. All these jobs have to go through two workstations for processing. Each job is processed on Workstation #1 and then on Workstation #2. The processing time for each job on each workstation is given below.
Job; Time on Workstation #1 (minutes); Time on Workstation #2 (minutes)
A; 50; 50
B; 20; 8
C; 25; 50
D; 30; 12
E; 11; 22
F; 11; 19
Using Johnson's sequencing rule, it can be concluded that the makespan of the sequence is:
a. more than 50 but less than or equal to 100 minutes.
b. more than 100 but less than or equal to 150 minutes.
c. more than 150 but less than or equal to 200 minutes.
d. more than 200 but less than or equal to 250 minutes.
Answer:
More than 150 but less than or equal to 200 minutes ( C )
Explanation:
using Johnson's sequencing rule
attached below is a tabular solution of showing the use of Johnson's sequencing rule
The End of job sequence B = 172 minutes which means that the make span of the sequence is More than 150 but less than or equal to 200 minutes
A bank of 10 machines requires regular periodic service. Machine running time and service time are both exponential. what is the optimal number of operators for this bank of machines
Answer:
hello your question lacks some details below is the complete question
A bank of 10 machines requires regular periodic service. Machine running time and service time are both exponential. Machines run for an average of 44 minutes between service requirements, and service time averages six minutes per machine
If operators cost $15 per hour in wages and fringe benefits and machine downtime costs $75 per hour in lost production, what is the optimal number of operators for this bank of machines?
A 1
B 2
C 3
D 4
E 5
Answer : 3 operators ( c )
Explanation:
number of machines = 10
machine run time for each = 44 minutes
service time = 6 minutes
cost of each operator = $15 per hour
loss during machine down time = $75 per hour
hence the optimal number of operators
The total minutes the machine would work in a hour
= (60 - 6) * 10 = 540 minutes
assuming we assign 180 minutes to each operator then each operator would cost = 15 * 3 = $45
for three operators that would be = 45 * 3 = $135
lost inquired during down time
= 6 minutes * 10 = 60 minutes i.e the total cost inquired per hour = $75
hence 3 operators would be an optimal number of operators because the operators would work lesser hours and more efficiently as well
It is difficult for marketers to trace the effects of online marketing communications.
a) true
b) false
Answer:
false
Explanation:
An array of firm resources includes interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon
Answer: social complexity
Explanation:
Social complexity simply relates to how the existence of human beings are being studied. The things that are studied include armed conflicts, marriage practices, emigration patterns, political movements, natural disasters, etc.
Therefore, array of firm resources includes interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon social complexity.
Which of the following strategies seeks to increase the portfolio value by reinvesting current income in addition to capital gains?
A. Capital appreciation.
B. Capital preservation.
C. Return preservation.
D. Current income.
E. Total return.
Answer: D. Current income.
Explanation: A few examples of current income payments are dividends and interest payments. The current income investment strategies are those that attempt to increase the portfolio value by reinvesting current income in addition to capital gains. As such, they seek to identify investments that pay above-average distributions and is often of benefit to investors who desire reliable and high levels of income from an investment grade portfolio (short- and intermediate-term, investment grade corporate and agency obligations, and investment grade preferred securities).
An eight-year project is estimated to cost $528,000 and have no residual value. If the straight-line depreciation method is used and the average rate of return is 18%. determine the estimated annual net income.
Answer: $48,420
Explanation:
Average rate of return = Annual Net Income/ Average Investment
Average Investment
= (Beginning value of asset - ending value) / 2
= ( 538,000 + 0)/2
= $269,000
18% = Annual Net Income/269,000
Annual Net Income = 269,000 * 18%
Annual Net Income = $48,420
Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay 1/3 of the sales price of a jet ski when they initially purchase the ski, and then pay another 1/3 each year for the next two years. Because Lake has little information about collectibility of these receivables, they use the installment method for revenue recognition. In 2010 Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2010, $300,000 in 2011, and $300,000 in 2012 associated with those sales. In 2011 Lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000. Lake collected $500,000 in 2011, $400,000 in 2012, and $400,000 in 2013 associated with those sales. In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed.
1) In 2010, Lake would recognize realized gross profit of:______.
a) $0.
b) $450,000.
c) $300,000.
d) $150,000
2) In 2012, Lake would recgonize a realized gross profit of:_______.
a) $700,000.
b) $310,000.
c) $450,000.
d) $0
3) In 2013, Lake would record a lost on repossessions of:______.
a) $80,000.
b) $45,000.
c) $200,000.
d) $120,000.
4) In its December 31, 2011, balance sheet, Lake would report:_______.
a) deferred gross profit of $700,000.
b) installement receivables (net) of $900,000.
c) installment receivables (net) of $750,000.
d) deferred gross profit of $1,500,000.
Answer:
1) In 2010, Lake would recognize realized gross profit of:______.
a) $0.
Revenue for calculating gross profit is only recognized when the cost of goods sold (COGS) has been fully recovered.
2) In 2012, Lake would recognize a realized gross profit of:_______.
c) $450,000.
gross profit related to 2010 sales = $900,000 - $450,000 (remaining COGS) = $450,000
gross profit related to 2011 sales = $900,000 - $900,000 = $0
3) In 2013, Lake would record a lost on repossessions of:______.
c) $200,000.
4) In its December 31, 2011, balance sheet, Lake would report:_______.
b) installment receivables (net) of $900,000.
total installments receivables = $300,000 + $1,000,000 = $1,300,000
remaining COGS from 2011 sales = $400,000
installment receivables (net) = $1,300,000 - $400,000 = $900,000
Prepare a bank reconciliation: ABC Enterprises gathered the following information prior to reconciling their cash balance per books (internal accounting records) to the recently received bank statement for the month ending January 31, 2018: Cash per balance per books, 1/31/18 Deposits in transit NSF check Bank services charges Outstanding checks Notes Receivable collected by the bank S 1,000 Cash balance per bank, 1/31/18 $7,500 S 500 50 000'9 S $11,950 Perform the bank reconciliation: The ADJUSTED CASH BALANCE PER BOOK as of January 31, 2018:________
A) $7,950
B) $7,500
C) $6,950
D) $3,500
Answer: ADJUSTED CASH BALANCE PER BOOK as of January 31, 2018 is A) $7,950
Explanation:
ABC Enterprises reconciled cash balance per books (internal accounting records as of January 31, 2018.
Cash balance as per company book $7,500
Add:
Notes receivable collected by bank $1000
Deduct:
NSF check $500
Bank service charge $50
Adjusted Book Balance $7,950
Baden Corporation entered into a lease agreement for 100 photocopy machines for its corporate headquarters. The lease agreement qualifies as an operating lease except there is a bargain purchase option. After the 5-year lease term, the corporation can purchase each copier for $1,000, when the anticipated fair value is $2,500. Jerry Suffolk, the financial vice president, thinks the financial statements must recognize the lease agreement as a finance lease because of the bargain purchase option. The controller, Diane Buchanan, disagrees: "Although I don’t know much about the copiers themselves, there is a way to avoid recording the lease liability." She argues that the corporation might claim that the copier technology advances rapidly and that by the end of the lease term, the machines will most likely not be worth the $1,000 bargain price.
(a) What ethical issue is at stake?
(b) Should the controller’s argument be accepted if she does not really know much about copier technology? Would it make a difference if the controller were knowledgeable about the rate of change in copier technology?
(c) What should Suffolk do?
Answer:
Answer is explained below
Explanation:
A)
The ethical issue at stake is whether to record the lease agreement for 100 photocopy machine as a finance lease or operating lease because in operating lease we don't record it as asset or liability in financial statements but in finance lease, we record both asset and liability generally at the present value of rentals payments. As the bargain option is available this lease agreement will be said to be a finance lease agreement.
B)
No without knowing much about the copier technology the argument of controller should not be accepted.
C)
Suffolk should represent lease as a financial lease but he can get the terms of lease revised as to the fair value of copier revised after the proper analysis and computation of copier value.
Benace Parts and Supply makes a variety of car parts. The company produces A90 parts each year. Each A90 sells for and has a contribution margin of . Currently, of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued?
Answer:
The total Operating income will decrease by $5,000
Explanation:
Note that some word are missing and are inserted as written below:
"Benace Parts and Supply makes a variety of car parts. The company produces 6,000 A90 parts each year. Each A90 sells for $7 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued? "
Solution:
Loss of Contribution margin if the A90 product line discontinued = Units * Contribution margin per unit
= 6,000 units * $2
= $12,000
Saving of avoidable fixed Overhead = $7,000
Decrease in Total Operating Income = Loss of Contribution margin - Saving of avoidable fixed Overhead
= $12,000 - $7.000
= $5,000 (Decrease)
Hence, the total Operating income will decrease by $5,000
A coupon bond pays annual interest, has a par value of $1,000, matures in 4 years, has a coupon rate of 10%, and has a yield to maturity of 12%. The current yield on this bond is
Answer:
The answer is 10.65 percent
Explanation:
We first find the curren price of the bond
N(Number of periods) = 4 years
I/Y(Yield to maturity) = 12 percent
PV(present value or market price) = ?
PMT( coupon payment) = $100 (10 percent x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 4; I/Y = 12; PMT = 100; FV= $1,000; CPT PV= -939.25
The market price of the bond is $939.25
Therefore, the current yield on this bond is 100/939.25
= 0.1065
Expressed as a percentage
10.65 percent
How do you short term goals differ from long-term goals
Answer:
Short term goals differ from long term goals because long term goals tend to take longer than short term goals.
Explanation:
Hope this helps!
Hilton company reported net income of $30,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded. Using the indirect method, net cash provided by operating activities for the year is:_______
a. $25,000.
b. $45,000.
c. $29,000.
d. $30,000.
Answer:
a. $25,000
Explanation:
The computation of net cash provided by operating activities is shown below:-
Particulars Amount
Net Income $30,000
Add Depreciation $5,000
Less Increase in Accounts Receivables -$7,000
Less Decrease in Accounts Payable -$3,000
Net cash Provided by Operating Activities $25,000
You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $810. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 11 percent. If the inflation rate was 3.4 percent over the past year, what was your total real return on investment?
Answer:
real rate of return = 4.77%
Explanation:
you purchased the bond at $810 with 14 years to maturity
now, 1 year later the bond's price is:
PV of coupon payment = $1,000 / 1.11¹³ = $257.51PV of coupon payments = $80 x 6.7499 (PV annuity factor, 11%, 13 periods) = $539.99market value = $797.50
total nominal returns = $80 (coupon payment) + ($797.50 - $810) = $67.50
the real rate of return = {[1 + ($67.50/$810)] / (1 + 3.4%)} - 1 = 4.77%
Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise.
Preparing the liabilities section of the balance sheet
Luxury Suites Hotels includes the following selected accounts in its general ledger at December 31, 2018:
Prepare the liabilities section of Luxury Suites’s balance sheet at December 31, 2018.
Note Payable (long-term) $200,000
Accounts Payable $33,000
Bonds Payable (due 2022) 450,000
Discount on Bonds Payable 13,500
Interest Payable (due next year) 1,000
Salaries Payable 2,600
Estimated Warranty Payable 1,300
Sales Tax Payable 400
Answer:
Luxury Suites Hotels
Balance Sheet as of December 31, 2018:
Liabilities:
Current Liabilities:
Sales Tax Payable 400
Interest Payable (due next year) 1,000
Estimated Warranty Payable 1,300
Salaries Payable 2,600
Discount on Bonds Payable 13,500
Accounts Payable $33,000
Total current liabilities $51,800
Long-term Liabilities:
Note Payable (long-term) $200,000
Bonds Payable (due 2022) 450,000
Total long-term liabilities $650,000
Total liabilities $701,800
Explanation:
The Hotel's liabilities are the financial obligations that Luxury Suites Hostels owes the debt providers for funding its assets. They are divided into two: current and non-current or long-term liabilities. The obligations that are expected to be settled within the next one year are classified as current. The other obligations which are not expected to be settled within one year are called noncurrent or long-term liabilities. Liabilities are forms of leverage or gearing that a company employs to help her in generating profits for equity stockholders.
The historical cost concept reflects the fact that financial accounting practice favors:________.
Reliability over relevance
Management's best guess over historical financial information
Relevance over reliability
Consensus market values over historical financial information
Answer:
Reliability over relevance
Explanation:
The historical cost principle states that assets must be recorded at purchase cost, disregarding any change in their market value. E.g. you purchased a land lot 10 years ago for $100,000 and now it is worth $500,000. It must be recorded at $100,000 since that was its original purchase cost.
Accounting tries to be as exact as possible, and if the carrying values started to change every period or even month by month because the accountant believed that the market value changed, then it would be a mess. Accountancy is not supposed to be a game of guessing, it is supposed to be as exact and reliable as possible.
When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected holding period. This price is referred to as the property's
Complete Question:
When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected holding period. This price (assuming selling expenses have yet to be accounted for) is referred to as the property's:
Group of answer choices
A. net sale proceeds
B. selling expenses
C. terminal value
D. current market value
Answer:
C. Terminal value.
Explanation:
When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected holding period. This price (assuming selling expenses have yet to be accounted for) is referred to as the property's terminal value.
Terminal value can be defined as the discounted value of all cash flows for a property after its forecast period or investment time in discounted cash flow analysis.
This ultimately implies that, the property's terminal value is primarily used for the estimation or determination of its value based on future cash inflow.
A firm with a cost of capital of 7% is considering two projects (they are not mutually exclusive), one expected to return 9% and a second expected to return 9.5%. Which projects should it pursue
Answer:
pursue both projects
Explanation:
The projects are not mutually exclusive thus the choice of one project does not hold back the pursuant of another (can occur at the same time).
Projects which provide a return above their cost of capital must be pursued as they are less risky.
Both projects provide the return above the costs of capital and should be pursued.
Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there. This an example of which type of advertising
Answer:
reminder institutional advertising
Explanation:
The reminder institutional advertising refers to a advertising in which the company focused to establish the goodwill or an image for the entity rather being promoting the company goods and services
Here in the given situation, it is mentioned that California is responsible for promoting tourism and it currently ran a successful Average joes for sharing the lifestyle so here it is establishing the goodwill
Therefore the above is the answer
Describe three types of resources the founders of Airbnb needed most to start the company and explain how they acquired these resources
Answer:
The newly formed company must have following three resources as per the world economic forum research that Airbnb must acquire before starting a business:
Access to MarketsHuman ResourceFunding ResourcesExplanation:
The Access to Markets means you have access to wider customers either through distribution channels or marketing channels. The domestic demand of the product not only supports the company but will also help in developing product differentiation and increased foreign customers.
The Human Capital includes the talented employees that the company would require to solve its evolving problems with great creative ideas. The technical employees plays very important role at the start of the business. The management that manages the business operation are the second most important human resource for the company.
The startup that has Access to Funds can take better decisions because the decision totally differs when you have funds in hand. The reason is that when you have money in hand you will invest in better future and when you don't have money access then you will try to survive which means business growth is not possible without investment. It is the most difficult resource to obtain for a startup.
The formed company must have following three resources as per the world economic forum research that Airbnb must acquire before starting a business: Access to Markets, Human Resource and Funding Resources.
What are the three types of resources the founders of Airbnb?The Access to Markets means you have access to wider customers either through distribution channels or marketing channels.
The Human Capital includes the talented employees that the company would require to solve its evolving problems with great creative ideas.
The startup that has Access to Funds can take better decisions because the decision totally differs when you have funds in hand.
Learn more about resources, refer to the link:
https://brainly.com/question/12152594
What arguments should be considered in assessing the burden that government debt imposes on future generations?
A. Much of the debt is held by foreigners so that the holders of government bonds are not also taxpayers.
B. Government budget deficits may crowd out private investment, lowering the future capital stock with fewer goods and services being produced in the future.
C. High levels of debt may lead to debt intolerance and increase the risk of default.
D. A and C only.
E. All of the above.
Answer:
E. All of the above.
Explanation:
A) This has happened to other countries, e.g. over 100 years ago, the US owned a very large portion of British foreign debt and it was able to influence British policies. Until that time, the British had been the largest in the world.
B) When government sell bonds, it withdraws money form the economy and increases interest rates, which in the long run will lower capital stock and hurt the economy.
C) The higher the debt level, the higher the interest that must be paid. This also applies to everyone. Imagine if you do not owe any money, and if you need to loan you have several options where to choose from. But if you are over your head in debt, banks will stop lending you money and you will have to look to more expensive sources of credit.
At the beginning of the month, the Forming Department of Martin Manufacturing had 26,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 76,000 units and transferred 86,000 units to the next manufacturing department. At the end of the month, the department had 16,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
Answer:
materials = 100,400 units and conversion = 95,600 units
Explanation:
Computation of the equivalent units of production for materials
Units completed and transferred (86,000 × 100%) = 86,000
Units in Ending Work In Process (16,000 × 90%) = 14,400
Total equivalent units of production for materials = 100,400
Computation of the equivalent units of production for conversion cost
Units completed and transferred (86,000 × 100%) = 86,000
Units in Ending Work In Process (16,000 × 60%) = 9,600
Total equivalent units of production for Conversion cost = 95,600
Tara Westmont, the stockholder of Tiptoe Shoes, Inc. had annual revenues of $203,000, expenses of $112,700, and the company paid $25,200 cash in dividends to the owner (sole stockholder). The retained earnings account before closing had a balance of $315,000. The ending retained earnings balance after closing is:
a. $203,000
b. $65,100
c. $90,300
d. $380,100
e. $405,300
Answer:
The Ending balance = $380100. Thus option D is the correct answer.
Explanation:
The net income of the company is used or utilized in two ways at the end of the year. It is either paid out as dividend or retained in the business and transferred to the retained earnings account or both. To calculate the ending balance of retained earnings account, we use the following equation,
Ending balance = Opening balance + Net Income - Cash Dividends
First we need to determine the net income for the year.
Net Income = Revenue - Expenses
Net Income = 203000 - 112700
Net Income = $90300
Ending balance of retained earnings account will be,
Ending balance = 315000 + 90300 - 25200
Ending balance = $380100
Describe the formation process of cross-border mergers, acquisitions, and international joint ventures. What are the major differences?
Answer:
The answer is below
Explanation:
Merger is a business term that defines the major mean of concentrating businesses. It can be in two different forms, which can either be through the arrangement of a new company or through the through the unification of one or more firms into another firm.
Acquisition however is a business term that describes the purchases of a company's most or all shares, in order gain control that company, buy another company (buyer).
On the other hand, An international joint venture often referred to as IJV is a business term that describes the formation of partnership of companies based in two or more countries, without taking over the other company outright.
Hence, the formation process of a merger, acquisition and international joint venture involves the following:
1. Planning: this stage involves the signing of the letter of intent, advisor appointment, creating and documenting the timetable, transaction method and expert report
2. Resolution: this stage is also vital which involves meetings of Board of Director, extraordinary shareholder, identification of opposition party and go ahead from the antitrust authority.
3. Implementation: this is a stage involving the enrolment of the merger deed in the Company Register.
Open market operations are typically repurchase agreements. What does this tell you about the likely volume of defensive open market operations relative to the volume of dynamic open market operations?
Answer: • Defensive operations are usually common and that the dynamic open market operations is smaller than the volume of the defensive open market operations.
Explanation:
Open market operations is when treasury bills and securities are on sale in an economy. It is typically bought by the central bank to ensure that money is available in an economy.
Open market operations are typically repurchase agreements tells us that defensive operations are usually common and that the dynamic open market operations is smaller than the volume of the defensive open market operations.