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liubo4ka [24]
2 years ago
14

Calculate the reserve requirement if the money multiplier is equal to 14 and banks hold no excess reserves and consumers hold no

cash. Round your answer to the nearest thousandth.
Business
1 answer:
Andrew [12]2 years ago
7 0

The reserve requirement given the  money multiplier is 7.143%.

<h3>What is the money multiplier?</h3>

The money multiplier is the total increase in money supply given the reserve requirment. Reserve requirment is the percentage of deposits required by banks to be kept as reserves.

Reserve requirement = 1 / money multiplier

1/14 = 7.143

To learn more about money multiplier, please check: brainly.com/question/25812353

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g Cathy Rogers deposits $200 in currency in her checking account at a bank. This deposit is treated as:
Step2247 [10]

Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits

Explanation:

The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.

All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.

Money supply therefore remains the same.

4 0
3 years ago
_____________ measures how changes in price affect the quantity of product demanded.
Margaret [11]

Price elasticity of demand measures how changes in price affect the quantity of product demanded. A good or service's price elasticity of demand is calculated by dividing percentage change in the amount sought by percentage change in the price.

The ratio of the percentage change in quantity supplied to the percentage change in price is  price elasticity of supply. A good or service's price elasticity of demand is calculated by dividing percentage change in  amount sought by the percentage change in price.

The ratio of percentage change in quantity supplied to percentage change in price is  price elasticity of supply.

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brainly.com/question/13691796

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5 0
2 years ago
AirStep Shoe Company has two retail stores, one in Gainesville and the other in Orlando. The Gainesville store had sales of $100
Yakvenalex [24]

Answer:

D. $45,000

Explanation:

The computation of the contribution margin for the Orlando store is

= Total sales × contribution margin percentage - Gainesville sales × contribution margin percentage

= $250,000 × 32% - $100,000 × 35%

= $80,000 - $35,000

= $45,000

Contribution margin is come from deducting Gainesville contribution margin from the total contribution margin

7 0
3 years ago
The ______________card can be used anywhere.
Assoli18 [71]

Answer:

Multi-purpose credit is the answer

Explanation:

8 0
3 years ago
When reconciling a bank account, which one of the following is considered a timing difference (difference between the bank balan
DanielleElmas [232]

Answer:

Outstanding checks

Explanation:

One of the reasons why a cash book and a bank statement might <em>not show identical entries arise</em> from outstanding checks.

Outstanding checks are payments that have not yet been cleared and debited to the account at the bank.

8 0
3 years ago
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