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vfiekz [6]
2 years ago
13

Everything else held constant, an increase in the excess reserves ratio causes the m1 money multiplier to ________ and the money

supply to ________.
Business
1 answer:
Cloud [144]2 years ago
4 0

The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>
  • The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
  • The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

learn more about reserve ratio here

<u>brainly.com/question/13758092</u>

#SPJ4

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a market is a market for new issues of securities. a market is a market for already existing securities.
Oksi-84 [34.3K]

Market for new issues of securities is Primary Market and Market for already-existing securities is Secondary Market.

What is Secondary Market?

Investors can acquire and sell securities they already possess on the secondary market. Although stocks are also sold on the main market when they are originally issued, it is what most people refer to as the "stock market."

Therefore,

Market for new issues of securities is Primary Market and Market for already-existing securities is Secondary Market.

To learn more about Secondary Market from the given link:

brainly.com/question/17168396

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3 0
2 years ago
Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue
Serga [27]

Answer:

Explanation:

The four transactions  will be recorded in the general journal as follows:

1) Debit cash                 $12,000

             Credit common stock                       $12,000

(To record the sale of common stock)

2) Debit purchases                 $5,600

            Credit   cash                 $5,600

(To record purchase of inventory in cash)

3) Debit cash                 $5,712

           Credit sales                        $3,360

            Credit gross profit              $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses                   $650

          Credit cash                     $650

(To record the payment of advertising expenses in cash)

5 0
3 years ago
If you could create one product that makes your daily life easier, what would that product be? How would that product work? Wher
Dima020 [189]

Answer:

Explanation:

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6 0
3 years ago
An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
liubo4ka [24]

Answer:

$6,000

Explanation:

The computation of the expected profit from this investment is shown below:

= Strong profit × Strong percentage + Moderate profit × moderate percentage - recession losses × recession percentage

= $60,000 × 20% + $10,000 × 60% - $60,000 × 20%

= $12,000 + $6,000 - $12,000

= $6,000

By adding the three situations we can get the expected profit from this investment

3 0
3 years ago
Two years ago, the de Castellane Manufacturing Company included its employees in a profit-sharing plan in which workers receive
lina2011 [118]

Answer:

The correct answer is operant conditioning.

Explanation:

Operative conditioning is a form of incentive, whereby a group of individuals are more likely to repeat forms of behavior that carry positive consequences and less likely to repeat those that carry negative consequences. In this case, by involving the company's employees in productivity gains, the positive behavior that leads to this happening is rewarded.

Have a nice day!

5 0
3 years ago
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