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
LUCKY_DIMON [66]
1 year ago
9

Suppose the required reserve ratio is 8% and the Fed purchases $10 million worth of Treasury bills from Wells Fargo. What's the

maximum possible increase of deposits in the banking system
Business
1 answer:
ahrayia [7]1 year ago
7 0

The answer is $100 million.

The reserve ratio is the percentage of a commercial bank's deposits that it must retain in cash as a reserve in case of large client withdrawals, as determined by the central bank.

The reserve ratio is a significant monetary policy instrument used by the Federal Reserve in the United States to boost or decrease the economy's money supply.

Banks require an RRR of 8% for demand deposits, not for funds received through the selling of treasury bills to the FED, hence Wells Fargo will be free to raise its loans by $100 million.

To know more about reserve ratio click here:

brainly.com/question/13758092

#SPJ4

You might be interested in
What is the difference between patronage and the merit principle?
alexdok [17]
Patronage principle based its hiring and promotion system on political reasons while the merit principle employed the idea that hiring should be based on entrance examination and promotion. One of the major disadvantage of the patronage principle is that, it may end up employing people who are not qualify for the job. Merit principle choose based on qualifications. 
5 0
4 years ago
Some risks can be mitigated
OverLord2011 [107]

Answer:

True

Explanation:

If a natural disaster occurs, house insurance can prevent you from further financial loss, as some compensation would be given.

4 0
3 years ago
Esmeralda promises to pay fiorello $400 because ""he does not have as much money as other people. "" esmeralda’s promise is not
snow_tiger [21]

7. Option b. Consideration is mutual i.e. both parties get something in the return for the performance of the contract. However, Esmeralda has not given consideration in exchange.

Esmeralda was given the chance to audition for the Performing Arts High School which she succeeded in. She then moved to New York and attended School, studying drama and dance.

Esmeralda Santiago wrote her autobiography "When I Was Puerto Rican" which narrates her and her family's life moving from Puerto Rico to America. The book also follows the Puerto Rican girl through the many obstacles that she had to endure and overcome to change her life.

Learn more Esmeralda at

brainly.com/question/24812570

#SPJ1

8 0
2 years ago
Sunshine Blender Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calcula
Alekssandra [29.7K]

Answer:

Total contribution margin= $60,000

Explanation:

Giving the following information:

Units sold= 3,000

Selling price per unit= $45

Unitary variable cost= $25

First, we will calculate the unitary contribution margin:

Unitary contribution margin= 45 - 25= $20

Now, total contribution margin:

Total contribution margin= 3,000*20= $60,000

5 0
3 years ago
(1) The future value of the ordinary annuity is ​$22713.1822713.18. ​(Round to the nearest​ cent.) ​(2) The future value of the
NISA [10]

Answer:

Annuity​ due, because it yields a greater future value.

Explanation:

Given that the future value of the ordinary annuity is ​$22713.1822713.18

Rounded off to the nearest cent we get

22713.18 $ from ordinary equity

The future value of the annuity due is ​$25211.6325211.63.

Rounded off to the nearest cent we get

25211.63 $

Assuming all else are identical , we prefer to select the one which gives more future annuity.

On comparison we find that annuity gives more future value.

So answer is

Annuity​ due, because it yields a greater future value.

7 0
3 years ago
Other questions:
  • Fall protection, confined space entry procedures, controlled noise levels, and protection from chemical hazards are some of the
    10·2 answers
  • Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A
    11·1 answer
  • Using account analysis, what type of cost is the fee the airline company charges for your bags assuming a typical policy is $25
    8·1 answer
  • The Constitution expressly grants which of the following powers to Congress? a. to receive ambassadors b. to appoint judges c. t
    15·1 answer
  • Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to come up with names for
    11·1 answer
  • For a sale, the original retail price of a particular shirt and the original retail price of a particular hat were both reduced
    8·1 answer
  • Sorter Company purchased equipment for $330,000 on January 2, 2019. The equipment has an estimated service life of 8 years and a
    6·1 answer
  • On August 1, 2020, Jose purchased and placed in service a building that cost $1,200,000. An appraisal determined that 25% of the
    15·1 answer
  • What is the journal entry for declaring $9000 dividend to be paid next month
    13·1 answer
  • The size and cut of a diamond allows people looking at a ring to roughly estimate its cost and make a judgment about the wearer'
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!