An increase in reserve requirements A. decreases nonborrowed reserves and decreases the federal funds rate. B. leaves nonborrowed reserves unchanged and increases the federal funds rate. C. leaves nonborrowed reserves unchanged and decreases the federal funds rate. D. increases nonborrowed reserves and increases the federal funds rate.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld