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3 years ago

In a fractional-reserve banking system, an increase in reserve requirements

Business

1 answer:

lidiya [134]3 years ago

8 0

Answer:

B. Decreases both the money multiplier and the money supply

Explanation:

An increase in reserve requirement decreases the amount of excess reserves in the banking system. This decrease means that there will also be less money for banks to loan out. this will lead to a reduction in money supply. The money multiplier on the other hand is the how a small deposit can result in a greater increase in money supply in the economy. Money multiplier will also decrease in this case. This is how;

Money multiplier = 1 / reserve requirement .

Based on above equation, if reserve requirement goes up, the overall; fraction will be smaller hence a decrease in money multiplier.

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Superior Construction Co. was contracted to plaster all the buildings of a historical preservation project for $2,500,000 over t

Cerrena [4.2K]

Answer:

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

Explanation:

given data

historical preservation project = $2,500,000

time = 2 year

estimated costs = $2,000,000

Actual costs Years 1 = $800,000

Actual costs Years 2 = $900,000

to find out

what amount of gross profit would Superior report in Year 1

solution

we find here first Percentage Completion that is express as

Percentage Completion = Cost to date ÷ Estimated Total Cost .............1

put her value we get

Percentage Completion = $\frac{800000}{2000000}$

Percentage Completion = 40%

and

Revenue Recognized will be here

Revenue Recognized = Percentage Completion × Total estimated Revenue ...............2

Revenue Recognized = 40 % × 25000000

Revenue Recognized = 1000,0000

so here Gross Profit in Year 1 will be

Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1 ..............3

Gross Profit in Year 1 = 1000,0000 - v800000

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

3 0

3 years ago

During the last decade, there was an increase in sales in cds, dvds, pen drives, and portable hard discs, as people sought to re

kipiarov [429]

During the last decade, there was an increase in sales in cds, dvds, pen drives, and portable hard discs, as people sought to replace their obsolete floppy discs. in terms of the technology cycle, this is an example of <span>DISCONTINUOUS CHANGE.</span>

4 0

3 years ago

There are linkages between the microeconomic decisions made by managers and the macroeconomic environment. There are numerous ex

allochka39001 [22]

Answer:

One typical example of this linkage between the economy at the macroeconomic level, and business decisions at the macroeconomic and microeconomic level, is what happened with Lehman Brothers in 2008.

Explanation:

Lehman Brothers was one of the main investment banks in the United States. During the years prior to the financial crisis, Lehman Brothers decided to pursue a risky but profitable strategy of over leveraging -lending a lot more money than they had as deposits.

Once the financial crisis hit, a macroeconomic event, it affected the company at the macro and micro level. At the macro level because Lehman Brothers itself ceased to exist as it went bankrupt, and at the micro level, because it had to enter a process to pay off some debtors, and some of the employees who were laid off due to the dissolution of the firm.

4 0

2 years ago

Assume a company has a cost of capital that is greater than zero and has cash flows related to the changes in net working capita

Otrada [13]

Answer:

A. Decrease

Explanation:

In investment appraisal with the method of Net Present Value, the bone of contention and the central matter is the TIME VALUE OF MONEY.

In the above scenario, the initial working capital was 100% released in proportions of 40%, 40% and 20%, throughout the 3 years of the project. However, if the reverse had been the case, i.e. parting with more cash now and the requirement of working capital now becomes: Year 0 = -10,000, Year 1 = - 10,000, Year 2 = -10,000, Year 3 = +30,000; the NPV would definitely shrink because the value of 10,000 each in Years 0-2 would not be the same when it is recovered from the project in year 3. The value will be smaller and hence the NPV of the project would have decreased as a result of the time value of money.

7 0

3 years ago

Another term for "food poisoning" is?

disa [49]

Answer:

botulism. salmonella.

Explanation:

7 0

2 years ago

Read 2 more answers