[Anonymous]

For anyone who’s interested or is taking BEC soon and wants to practice. We did this in the Q2 FAR group and it was really helpful, especially for memorizing formulas, which as we all know, BEC is heavy with. Answer or ask your own question! Just be sure to come back on here and let the person who answered know if they were right or wrong 🙂

I’ll start it off:

What is the formula to calculate Marginal Propensity to Consume (MPC)?

[Anonymous]

It's actually shift left in aggregate supply. If the demand curve shifted left, it would decrease GDP but also decrease the price. I always have to draw these ones out.

[stoleway]

@Amanda_88

Your question is not very specific but I will try

1.falling GDP and rising prices is a sign of inflation

2.Domestic products will become expensive and exports will decrease

3 Domestic currency will depreciate against other foreign currencies- shift to the left

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[zumbasweety]

What's a Federal Reserve Policy that would increase money supply?

FAR 82
REG 76
BEC 71, 78 (There is a light!!!)
AUD 69, 83 (DONE!!!!)

[Anonymous]

I just got a question that asked nearly word for word what I typed out, so be on the lookout for nonspecific questions on the exam. It's specifically related to which curves would shift.

[Anonymous]

Increase open market operations, decrease the required reserve ratio, decrease the discount rate

[stoleway]

@zumbasweety

Decrease the discount rate or decrease the required reserve ratio

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[zumbasweety]

How is the US balance of trade decreased?

FAR 82
REG 76
BEC 71, 78 (There is a light!!!)
AUD 69, 83 (DONE!!!!)

[stoleway]

@Amanda_88

Open Market operation could be the Feds buying or selling security.

But I think the money supply will increase if the feds purchase security or reduces interest rate

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

@zumbasweety

If imports are greater than exports

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

The federal reserve uses monetary policy to increase the money supply, which includes open market operations, so I believe expansionary open market operations would increase the money supply

[M.O.D.]

Open market operations means the Fed is buying what securities, and from whom?

Why does this increase the money supply?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[stoleway]

Fill in the blank

The internal audit dept reports to(A)…………………functionally and (B)…………………….administratively

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

@ Amanda_88 you're right… s and d are right next to one another (gotta learn to read before hitting send post!) lol

[Anonymous]

@ MOD if the FED is buying securities, they're increasing money supply . If they're selling securities, they're decreasing money supply (Pulling $ out of the hands of market participants, and providing a security instead).

[stoleway]

@M.O.D.

Government buys securities from the money market, this is seen as a form of government expenditure which pumps more money into the system. If the Feds want to reduce money supply, they will rather sell securities in order to take money out of the system, these type of securities have higher interest rate so people are incentivized to invest in them.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Author]

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