All categories

2 years ago

Reserves change by $12 million, and the money supply changes by $60 million. what does the simple deposit multiplier equal?

1 answer:

8 0

Reserves change by $12 million, and the money supply changes by $60 million. 5 is the simple deposit multiplier equal.

simple deposit multiplier = ΔM/ΔR

= 60/12 = 5

The simple deposit multiplier assumes that banks hold no excess reserves, and households and corporations deposit the complete amount of every test in a monetary institution and no longer take out any as foreign exchange.

The deposit multiplier is also referred to as the deposit enlargement multiplier or the clean deposit multiplier. it is linked to the part of a financial institution's deposits that may be lent to borrowers. This lending hobby injects coins into the kingdom's cash delivery and enables financial hobby.

Learn more about deposit multiplier here: brainly.com/question/15397793

#SPJ4

You might be interested in

Starting an investment portfolio at a young age means:

Zinaida [17]

Answer:

c. There is greater potential for high yield over a longer period

Explanation:

6 0

3 years ago

You lend a friend $, which your friend will repay in equal annual end-of-year payments of $, with the first payment to be r

Vadim26 [7]

Answer: 18%

Explanation:

The payments that your friend will make are an annuity as they are constant. This means that the loan amount of $15,000 is the present value of the annuity.

To find the rate of return, use the factor tables.

Present value of annuity = Annuity * Present value interest factor of annuity, 14 years, ?%

15,000 = 3,000 * Present value interest factor of annuity, 14 years, ?%

Present value interest factor of annuity, 14 years, ?% = 15,000 / 3,000

Present value interest factor of annuity, 14 years, ?% = 5.0

Go to the present value of annuity factor table and find out what interest rate intersects with 14 periods such that the factor is 5.0.

That rate is 18%.

Rate of return is therefore 18%.

6 0

3 years ago

When a firm can _____ its capital equipment over a shorter period, it cuts its taxes _____. appreciate; later appreciate; now de

Andre45 [30]

When a firm can depreciate its capital equipment over a shorter period, it cuts its taxes now.

A capital asset's value dropping is referred to as capital depreciation. To determine the recovery cost incurred on fixed assets over the course of their useful lives, assets are depreciated. When the asset reaches the end of its useful life or you need to sell it, this is used as a sinking fund to replace it. Depreciation lowers the taxable income, which lowers the tax burden. Capital assets are listed as an asset on the balance sheet and are depreciated over the course of their useful lives. Businesses typically have to spread out the costs of capital investments over a number of years in accordance with predetermined depreciation schedules.

More about depreciation brainly.com/question/15178885

#SPJ4

8 0

2 years ago

Which combination of changes would increase the glomerular filtration rate (gfr the most?

denis23 [38]

Increase<span> in systemic blood pressure, what mechanism </span>would increase GFR<span>? </span>

7 0

3 years ago

A budget is usually constructed for a period of

Musya8 [376]

A couple of years: Is usually when a budget is usually constructed.

6 0

3 years ago