1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grin007 [14]
2 years ago
7

Banks in Ruritania have a required reserve ratio of 5%5% . Round all answers to one place after the decimal. What is the simple

money multiplier
Business
1 answer:
Nata [24]2 years ago
5 0

The simple money multiplier forb the banks is given as 20.

<h3>How to solve for the money multiplier</h3>

The increase in the supply of money is what is called the money multiplier. This is used to determine the supply of money in an economy because it is known to have an effect on the interest rate of the economy.

The formula for the simple money multiplier is given as;

1/R

Where R is the Required reserve ratio

In the question the given reserved ration is said to be 5%

Hence the calculation would be

1/5%

= 1/0.05

= 20

The simple money multiplier is given as 20

Read more on money multiplier here: brainly.com/question/13988758

#SPJ1

You might be interested in
Why is my grandpa showing me how to cheat
geniusboy [140]

Answer:

Are you talking about schoolwork? Are you having extreme problems? Maybe he doesn't want to see you fail so he's trying to to help you. And although cheating isn't the right way to do it he probably wants to do whatever he can just to help you

Explanation:

4 0
3 years ago
Read 2 more answers
A company which sources raw materials and components from overseas will hold extra inventory of these items due to a mismatch be
Cloud [144]

Answer: Transportation Inventory

Explanation: Transportation or transit inventory is a type of inventory that accounts for goods a company has paid for but is yet to be delivered to their warehouse.

The company described in the question is involved in transit inventory and ensures to keep reserves of products they sell, in case their goods are not delivered before the time their customers need them.

5 0
3 years ago
Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp rise
melamori03 [73]

Answer:

Increase in the Federal fund rate

Explanation:

The Federal fund rate may be defined as the interest rate that the bank charges on another bank for an overnight loans. In other words it is the interest charged on the excess reserve that other borrows or lends overnight.

The Federal bank takes help of the Federal fund rates to keep a control on the inflation which encourages healthy economic growth.

In the context, when the economy of a country is experiencing sharp increase in inflation rate, I would recommend to increase the Federal fund rate so as to control the inflation rate being increased.

Both inflation rate and Federal fund rate are related closely to the relative availability of the reserves or the relative scarcity of he reserves in the Federal.

5 0
3 years ago
Which estimating technique uses a statistical relationship between historical data and other variables (e.g., square footage in
CaHeK987 [17]

Answer:

Parametric estimating

Explanation:

It is a calculation technique in which an algorithm is used to calculate the cost or duration based on historical data and project parameters.

The parametric estimation uses a statistical relationship between historical data and other variables (eg, square meters of construction) to calculate a variable of the parameters of an activity such as cost, budget and duration.

6 0
3 years ago
In November 2019, Yammy Fun Inc. purchased advertising for $1,000 that ran in the local November news paper. All purchases and s
Setler79 [48]

Answer:

debit advertising expense for 1,000, debit supplies inventory for 1,000, and credit accounts payable for 2,000

Explanation:

The correcting entry is

Advertising expense Dr$1,000  

Supplies inventory Dr $1,000  

            To Accounts payable $2,000

(being the correct entry is recorded)

here the advertising expense and inventory is debited as it increased the expenses & assets and credited the account payable as it also increased the liabilities

5 0
3 years ago
Other questions:
  • In east icicle, minnesota, on the northern edge of the corn belt, the growing season is short and the soil is poor. corn yields
    14·1 answer
  • An all-equity firm is considering the following projects:
    5·1 answer
  • Which one is the best way to prevent foreclose?
    6·2 answers
  • Loban Company purchased four cars for $9,000 each and expects that they will be sold in 3 years for $1,500 each. The company use
    12·1 answer
  • A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increa
    6·1 answer
  • ?????????????????????????help
    9·1 answer
  • In order to purchase a new freezer in 4 years, the Steakhouse Restaurant has decided to deposit $1,700 in an account that earns
    8·1 answer
  • Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
    8·1 answer
  • Madzinga's Draperies manufactures curtains. A certain window requires the following: Direct materials standard 9 square yards at
    10·1 answer
  • How do you consider globalization and workforce diversity as challenges to Human Resource management? Support your answer with p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!