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WINSTONCH [101]
1 year ago
15

If the reserve requirement of a bank is 33%, then $100 of MO will lead to how much of M1?

Business
1 answer:
lesantik [10]1 year ago
5 0

If the reserve requirement of a bank is 33%, then $100 of MO will lead to  $300 of M1. Thus, option (a) is correct.

What is bank?

The term bank refers to the financial institution offering the services related to the term money. The bank is manage financial system to handling accounts and manage the cash.

The bank is 33%

Money Multiplier= \frac{1}{Reserve Requirement}

Money Multiplier= 1/33%

Money Multiplier = 3.03

Money Multiplier = 3 (Approximately)

M1= Money Multiplier×M0

M1= 3×100

M1 = $300

$100 of M0 will lead to $300 of M1.

As a result, the MO of the bank can lead to the $300. Therefore, option (a) is correct.

Learn more about on bank, here:

brainly.com/question/14042269

#SPJ1

Your question is incomplete, but most probably the full question was

O $300

O $33

O $1000

O $330

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Answer:

C. Processing loan payments

Explanation:

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4 0
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Answer:

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Freya wants to use her debit card to purchase a $135 tablet computer. What must Freya consider before using her debit card? Chec
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3 0
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Which candidate will most likely get the job?
FromTheMoon [43]

A design firm wants to hire a senior manager to oversee its  architecture division.The design firm will hire -Hayley has been a manager for a decade  designed many buildings as an Architect  has supervised projects for clients

Explanation:

The design firm will hire Hayley for the position of senior manager in its architecture division because Haley has already hold the managerial position as well he has supervised many Architectural projects and has also designed many buildings ,so Hayley has the right  job experience that is required for the  senior manager position.

Considering other applicants we see that Samuel has experience only in designing the building not experience related to supervision and have not even held a managerial position.Rhonda is a mechanical engineer and have experience in designing building but does not have a prior experience in in holding any managerial or supervisory position.The same holds true with Enrique also.

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Answer:

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4 0
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