Use the Following to Answer Questions

question 172

Multiple Choice

Use the following to answer questions :
Figure: Monetary Policy and the AD-SRAS Model
-(Figure: Monetary Policy and the AD-SRAS Model) Look at the figure Monetary Policy and the AD-SRAS Model. If the economy is in a recessionary gap at point f, it could move to point g as a result of:

• A)a decrease in the money supply.
• B)a rise in the discount rate.
• C)an increase in the money supply.
• D)sales of government securities in the open market.

Grasp the implications of central bank policies for commercial banking operations, including lending practices and profitability.

Understand the concept and impact of stock splits and reverse splits on market price.

Grasp the principles and implications of dividend policy theories, including signaling theory and clientele effect.

Comprehend the residual dividend policy and its effect on dividend payment.

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Definitions:

Demand Options

Various strategies a company can use to manage or influence customer demand for its products or services.

ESOs

Stock options provided to employees within their salary package permit them to acquire shares in the company at a fixed price, serving as part of their overall compensation.

Company Stock

Equity shares issued by a company representing ownership interests, giving shareholders voting rights and a claim on the company’s profits in the form of dividends.