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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

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Read the following except from a warranty. What time period is this warranty for? "This warranty is given by XYZ motors. The Zoo
ArbitrLikvidat [17]

Answer:

The warranty period is for three years.

Explanation:

A warranty is a promise a buyer receives from the seller that the latter will repair or replace the product should it develop defects within a stated period. Warranties are granted with specific conditions. The universal condition is that the defects in the product are a result of the manufacturing process and not the buyers' misuse. The defect must occur within a stated period.

In the case of XYZ, the stated period is three years. However, the seller has introduced another condition of "or 30,000 miles whichever comes first." For business reasons, and from market experience, the seller expects that XYZ will use the vehicle at an average rate of 10,000 miles per year. At this rate, the warranty will last for three years. Should the buyer use the vehicle at a faster rate than this, the 30,000 miles will be exhausted earlier, which will bring the warranty to an end. If XYZ uses the vehicle at a slower or the expected rate, the warranty will last for three years.

7 0
3 years ago
As long as a market is contestable, then even if it has only a few sellers, the Group of answer choices threat of new entrants w
Irina18 [472]

Answer: threat of new entrants will prevent the prices from rising above the competitive level.

Explanation:

A contestable market has competition such that sellers cannot unilaterally decide to sell at a certain price. They have to sell at a competitive price that is set by the market to ensure that goods are allocated efficiently.

If the prices attempt to rise above this competitive level, new sellers will enter the market so as to make a profit which would have the effect of driving the price back down to where it was and even lower if even more sellers come in. The price is therefore maintained to ensure that this does not happen.

7 0
3 years ago
If merchandise sold on account is returned to the seller, the seller may inform the customer of the details by issuing a
SIZIF [17.4K]

The seller may inform the customer of the details by issuing a credit memo .

A credit note or credit memo is a commercial document issued by a seller to a buyer. A credit memo serves as the source document for the sales return journal. In other words, the credit is evidence of a decline in sales. A credit is a short form of term credit and is evidence of a reduction in the amount owed by the buyer to the seller on a previous invoice.

A document from the bank to the depositor may also indicate that the depositor's account balance is in a non-deposit event such as B. Collection of the depositor's exchange bill by the bank.

A credit memo lists the products, quantities, and agreed prices for products or services offered by the Seller to the Buyer but not returned or received by the Buyer. May be issued for damaged goods, errors, and repairs.

Learn more about Credit memos here: brainly.com/question/14279491

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4 0
2 years ago
If government cuts taxes. A. after tax income should increase shifting AD to the right to a higher equilibrium level of output B
Vera_Pavlovna [14]

Answer:

A. after tax income should increase shifting AD to the right to a higher equilibrium level of output

Explanation:

If the government reduces tax, the after tax income would increase and so woold demand. Thus, the aggregate demand curve would shift rightward to a higher equilibrium level of output.

If the government cuts taxes, after tax income should decrease shifting AD to the left to a lower equilibrium level of output

I hope my answer helps you

8 0
3 years ago
The product of sports marketing at the university of alabama are seats at the home games.
Lapatulllka [165]
The answer is true because it is true

3 0
3 years ago
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