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Luba_88 [7]
1 year ago
5

If the reserve requirement is 10 percent and the central bank sells 10,000 in government bonds on the open market, the money sup

ply will:_________
Business
1 answer:
sertanlavr [38]1 year ago
8 0

If the reserve requirement is 10 percent and the central bank sells 10,000 in government bonds on the open market, the money supply will <u>decrease by a maximum of $100,000.</u>

<h3>What is Reserve Requirement?</h3>
  • The amount of money that a bank must have in reserve in order to pay its obligations in the event of unforeseen withdrawals is known as the reserve requirement.
  • The central bank uses reserve requirements as a tool to alter the amount of money in the economy and affect interest rates.
  • Based on a portion of the cash that customers have on hand, banks lend them money.
  • In exchange for this power, the government imposes one obligation on them to maintain a minimum balance of deposits to cover potential withdrawals.
  • The reserve requirement is the amount that banks must hold in reserve and are not permitted to lend above.

To learn more about reserve requirement with the given link

brainly.com/question/17348419

#SPJ4

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The 2017 Form 10-K of Oracle Corporation, for the May 31, 2017 year-end, included the following information relating to their al
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Answer:

B. $129 million

Explanation:

bad debt expense for the year = balance in allowance at the end + write off - balance in allowance at the beggining

= $319 million + $137 million - $327 million

= $129 million

Therefore, Oracle Corporation report as bad debt expense for the year is $129 million.

5 0
3 years ago
What can you do to figure out how much you can afford when buying a car?
GuDViN [60]
You can check your credit and you can us it for the car u want ,

5 0
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The executives of the company need you to present on a new skateboard project which will be manufactured either in-house or in a
Effectus [21]

Explanation:

In this case, we see that the product's life cycle is in the introduction phase.

This is the first phase, where the initial phase of the product's life occurs, it is the phase where a new product will be launched on the market, so in this phase the ideal is to have a market segmentation, which occurs in the identification of a group of people with similar product responses and preferences, in order to find the ideal target audience for the new product to be launched and direct the advertising strategy and product features to that potential audience.

5 0
3 years ago
The following information pertains to a manufacturing company: Beginning finished goods inventory $48,000 Manufacturing overhead
EleoNora [17]

Answer:

COGS= $122,000

Explanation:

Giving the following information:

Beginning finished goods inventory $48,000

Cost of goods manufactured $117,000

Ending finished goods inventory $43,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 48,000 + 117,000 - 43,000

COGS= $122,000

7 0
3 years ago
Ganado and Equity Risk Premiums. Maria​ Gonzalez, Ganado's Chief Financial​ Officer, estimates the​ risk-free rate to be 3.50 %​
Elza [17]

Answer:

WACC (CAPM) 5.2%

WACC (ICAPM) 5.03%

Explanation:

The weighted average cost of capital is

Ke * E/ E+D + Kd * (1 -t) D / E+D

Ke = Rf + (Rm - Rf) * \beta

Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12

Ke (CAPM) = 7.532%

Kd (CAPM) = Kd (1-t)

Kd (CAPM) = 7.60 (1-39%)

Kd (CAPM) = 4.636%

WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%

WACC (CAPM) = 5.2164%

Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86

Ke (ICAPM) = 6.596%

Kd (ICAPM) = Kd (1-t)

Kd (ICAPM) = 7.60 (1-39%)

Kd (ICAPM) = 4.636%

WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%

WACC (CAPM) = 5.03%

7 0
3 years ago
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