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2 years ago

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

Business

1 answer:

lidiya [134]2 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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A recent survey found that 24% of Americans feel that it is always wrong to speed. In which of the following schools of ethical

borishaifa [10]

Answer:

"B"

Explanation:

Utilitarian is a group of people that belong to the school of thought that promotes happiness and a total well being of people in a society.

It believes that right actions and policy will always yield positive result while wrong actions will always yield unfavorable results

For this reason , it believes that selfish interest should not override the interest of others around as everyone must ensure that happiness reign in a society.

8 0

2 years ago

How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?

maksim [4K]

Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, <span>.Greater transfer activity diverts productive resources into rent-seeking activity</span>

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2 years ago

A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operat

lianna [129]

Answer:

35,972

Explanation:

The equivalent annual cost can be calculated dividing NPV by the annuity factor

In order to find NPV first

Year1 Year2 Year3 Year4 Year5 Total

Operating and

Maintenance 18000 21000 24000 27000 30000 -

Discount factor(10%) 0.909 0.826 0.751 0.683 0.620 -

Discounted CFs 16362 17346 18024 18411 18600 88,713

Salvage 12000

Discount factor(10%) 0.620

Discounted salvage 7440 (7440)

Inital Cost (55,000) (55,000)

NPV 136,333

Calculation for EAC

NPV = 136,333

Annuity factor for 5 years = 3.790

Equivalent annual cost = NPV /Annuity factor

Equivalent annual cost = 136,333/3.790

Equivalent annual cost = 35,972

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3 years ago

Sheridan Company received $135000 in cash and a used computer with a fair value of $318000 from Carla Vista Co. for Sheridan Com

sammy [17]

Answer:

The gain that Sheridan should recognize on this exchange is $135000

Explanation:

Where Exchange Transaction lacks commercial substance, the asset that is acquired is measured at the <em>Carrying Amount or Undepreciated Cost </em> of the asset given up.

The gain will then include an <em>further consideration acquired</em> on the exchange of an asset.

<u>Entries to record the exchange are as follows :</u>

Cash $135000 (debit)

New Asset at undepreciated cost $420300 (debit)

Cost of Old asset given up $420300 (credit)

Gain on exchange $135000 (credit)

Conclusion :

The gain that Sheridan should recognize on this exchange is $135000

6 0

3 years ago

An unfavorable fixed overhead volume variance can be due to all of the following except a.sales orders at a low level b.an incre

IgorC [24]

B is the correct answer.

An unfavourable fixed overhead volume variance can be due to all of the following except an increase in utility costs.

<h3>What is utility costs?</h3>

Utilities costs are the price associated with using services including electricity, water, waste removal, heating, and sewage. Throughout the reporting period, expenses are incurred, calculated, and accrued for, or payments are made. The term "Utility Costs" refers to all fees, surcharges, and other expenses related to providing any utilities that are necessary for the Premises, the Premises, or the Improvements, including, but not limited to, heating, ventilation, and air conditioning costs, costs associated with providing gas, electricity, and other fuels or power sources to the Premises, and costs associated with providing water and sewage services to the Premises.

To learn more about utility cost, visit:

brainly.com/question/8212077

#SPJ4

8 0

1 year ago