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slega [8]
1 year ago
15

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e

xcess reserves total $0.8 billion, then the m1 money multiplier is:________
Business
1 answer:
Ksju [112]1 year ago
3 0

The required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8

If the required reserve is 10%, the currency reserve multiplier is 10 and the currency supply should be 10 times the reserve. A reserve requirement ratio of 10% also means that banks can lend out 90% of their deposits.

The reserve ratio can be calculated by simply dividing the amount a bank must hold in reserves by the amount the bank has on deposit. For example, if he has $10 million in bank deposits and needs to hold $500,000 in reserves, the required reserve ratio is 1/20, or 5%.

The ratio of required reserves to deposits. A reserve ratio of 10% means that banks must hold 10% of their deposits as a reserve.

Learn more about reserve ratio at

brainly.com/question/13758092

#SPJ4

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Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.
Lana71 [14]

Answer:

Money multiplier, MM = (1 + Currency-deposit ratio) / (Currency-deposit ratio + Excess reserve ratio + Required Reserve ratio)

(a) Initially,

MM = (1 + 0.25) / (0.25 + 0.05 + 0.10) = 1.25 / 0.4 = 3.125

(b) Currency-deposit ratio = 0.3

MM = (1 + 0.3) / (0.3 + 0.05 + 0.1) = 1.3 / 0.45 = 2.89

(c) Excess reserve ratio rises to which number? MM cannot be computed unless exact number is provided.

7 0
3 years ago
Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the mon
denis23 [38]

Answer:

The answer is: $4,522

Explanation:

Since Stanford doesn't operate in the restaurant business and doesn't buy the restaurant, he cannot deduct any amount for investigation costs relating to the restaurant.

Stanford doesn't operate in the bakery business but he bought the bakery, so he can deduct up to $5,000 (before amortization) for investigation costs related to the bakery. But those $5,000 are reduced by every dollar he spent over $50,000, so he can only deduct $4,000 [= $5,000 - ($51,000 - $50,000)].

The remaining $47,000 (= $51,000 - $4,000) can be amortized over 180 months, which equals $261 per month (= $47,000 / 180 months).

Since he bought the restaurant in November, he can deduct two months: $261 per month x 2 months = $522

So his total deduction for investigation expenses is = $4,000 + $522 = $4,522

3 0
3 years ago
12. What is OSHA's purpose?
asambeis [7]

Answer:

ansure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education and assistance.

Explanation:

4 0
3 years ago
tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000, and Daisy'
olasank [31]

Answer:

Cost of goods sold to be reported in  consolidated financial statement = $1,000,000

Explanation:

Whenever there is 100% or more than 50% holding in a company, then equity method is followed under which all of the items are to be consolidated, but in case where there are inter transfers that is transfer from holding to subsidiary or vice-versa then such transactions, profit not realized is to be eliminated.

In case where inventory is transferred to subsidiary after adding profit by holding company, then in case if that inventory is sold to third party by year end then entire profit is recognized even the profit added by holding to cost of goods sold to subsidiary.

Where in case such inventory is not sold further by subsidiary to third party and is still held in the stock then such profit added on sale by holding to subsidiary is eliminated.

In our case the entire inventory is sold to third party by the year end.

Therefore, entire profit will be recognized and cost of goods sold to be shown in consolidated financial statements = $600,000 + $400,000 = $1,000,000.

8 0
3 years ago
Read 2 more answers
A technician is talking to end users about the specifications for an upgraded application server. The users of the application r
grigory [225]

Answer: RAID 10

Explanation: RAID is a data storage technology that joins various physical disk drives into 1 or more logical units. The aim of this is to improve performance, reduce data redundancy, or to incorporate both of these aspects.

RAID 1+0 or RAID 10, makes use of a minimum of 4 disks, to stripe data across these disks in pairs. This action combines disk striping with disk mirroring to protect data. Data is retrieved so long as 1 disk in the mirrored pair is operational. These functions can improve the system that the technician is trying to fix.

6 0
3 years ago
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