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adelina 88 [10]
3 years ago
8

If the central bank sells $10,000 in bonds to a bank that has issued $350,000 in loans and is exactly meeting the reserve requir

ement of 10%, the money supply _____.
Business
1 answer:
Scilla [17]3 years ago
8 0

The money supply will  be $100,000

Banks need to have a $ 10,000 reserve, so if you buy $350,500 with 4,444 bonds, you'll need to reduce your lending by $10,000 to make up for the difference.

A decrease in credit means a decrease in deposits at other banks. In other words, the excess reserve was initially zero, but after the bond is sold it will be minus $10,000,

. The money supply will be reduced by $10,000  x 1 / 0.1 = $100,000 .

Banking is a business that protects money for others. Banks lend this money and generate interest that benefits the bank and its customers. A bank is a financial institution that is allowed to accept deposits and make loans. However, we can also provide other financial services.

Learn more about Banking here: brainly.com/question/1115815

#SPJ4

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Carter's preferred stock pays a dividend of $1.40 per quarter. If the price of the stock is $69.00, what is its nominal (not eff
anygoal [31]

Answer:

Carter's preferred stock nominal annual expected rate of return is 8.12%.

Explanation:

Nominal annual expected rate of return of a preferred stock can be described as the current or unadjusted rate of return of the stock.

The nominal annual expected rate of return can be calculated as follows:

Nominal annual expected rate of return = Annual preferred stock dividend per share / Preferred stock price ............. (1)

Where;

Annual preferred stock dividend per share = Dividend per quarter * 4 = $1.40 * 4 = $5.60

Preferred stock price = $69.00

Substituting the values into equation (1), we have:

Nominal annual expected rate of return = $5.60 / $69.00 = 0.0812, or 8.12%

Therefore, Carter's preferred stock nominal annual expected rate of return is 8.12%.

3 0
3 years ago
Political forces that affect transportation businesses
bearhunter [10]

It is important to note that politics and the economy have effects on the transportation industry, as the industry is ever changing with new policies, regulations, or capacity issues.

Politicians and the policies they create dictate the US economy, effecting all industries. It is seen that the transportation industry saw effects because of the trade and tariff wars. The overall regulations depend largely on the economic and political outlook of the party in power.

For instance, a government that is inclined to pursue neo-liberal policies,  could pass more legislations favoring industries and big businesses, while a government inspired by socialism could push policies favoring small businesses.

Hence, the answer was given and explained above.

To learn more about politics and political party here:

brainly.com/question/12548909

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4 0
1 year ago
The collection of feelings and beliefs that managers have about their organization as a whole is known as organizational:
egoroff_w [7]
 The collection of feelings and beliefs that managers have about their organization as a whole is known as organizational: organizational commitment
An organizational commitment is determined by the company's culture and how employees experience that culture while committing the time of their lives for the company.
3 0
4 years ago
If a customer credit score is within 2 points of the minimum of what the business will accept, should the business extend credit
Eduardwww [97]

Answer:

Explanation:

I wouldn't.

The business has drawn a rigid line in the sand. It has to maintain its standard. I might try and make a deal with the customer. "Come up with x% for a down payment."

If the score is high (like over 750), I would likely stretch my standard. 750 is a pretty high score and if you have that kind of a number, you know how to pay things back.

5 0
3 years ago
Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quali
Hitman42 [59]

Answer:

The correct answer is advertising manipulates the tastes of people and can reduce or decrease the competition.

Explanation:

Advertising is the source through which the company or the firm promote the product or a service of their business, so that the customers could be make aware of the products and the services offered by the firms.

It manipulates the taste of the people by establishing a desire and impedes the competition through increasing the perception of the product differentiation.

4 0
3 years ago
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