An open market operation is . A. an exchange between a private bank and the Federal Reserve where the Fed buys or sells government bonds to private banks. B. where a bank borrows reserves or bonds from the Federal Reserve's discount window. C. an exchange between private banks where the banks buy or sell bonds to each other. D. the process of selling Fed-issued IOUs between banks. The Federal Reserve conducts open market operations when it wants to . A. change the level of reserves it holds for banks. B. influence the discount rate. C. change the liquidity levels of banks. D. influence the federal funds rate. When the Fed buysbuys government bonds fromfrom private banks, it ▼ decreases maintains increases the electronic reserves that banks hold. Click to select your answer.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51