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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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Answer:

Direct Cost.

Explanation:

As Newtech Inc. has hired John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be direct cost. Direct costs are the costs which can be tied directly to the manufacturing of products and services and they can be traced very easily as well. Labor cost, commissions, manufacturing supplies, direct material are the direct costs which can traced back to the manufacturing products quite easily.

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Cheryl was balancing the Trial Balance of the company. She found that the debit balance totaled $73,000 and the credit balance w
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3 years ago
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If these are the only four sellers in the market, then when the price decreases from $4 to $2, the market quantity supplied
inn [45]

Answer:

Decreases by 50 percent

Explanation:

The law of supply asserts that other things remaining constant, the quantity of goods and services supplied increases as price rises. Therefore, the price and quantity supplied are directly related. Should the price fall, the quantity supplied will also decrease. Producers will prefer to supply more when the price is high to make more revenue.

The supply curve is upward sloping indicating how quantity supplied changes at different price levels. In the case, the price has decreased from $4 to $2, which represents a 50 percent drop. The quantities supplied will decrease as per the law of supply.  A 50 percent decrease may result in a similar decrease in quantity supplied as the supply curve is upward sloping.

4 0
3 years ago
Craig, one of the senior managers at Clayton Inc., insisted that company supervisors handle employee relations as part of their
Alekssandra [29.7K]

Answer:

The supervisors represent the company on a day-to-day basis.

Explanation:

Craig said that the supervisors take employee relations as part of their jobs.

The option that buttresses this is that supervisors represent the company on a day-to-day basis. Meaning the supervisors as owners of the company, and as if they have a stake. Supervisors taking ownership presupposes they perform tasks like handling employee relations to ensure the business and the employee work harmoniously.

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To promote economic growth countries would most likely act so that inflation
kipiarov [429]
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High inflation could potentially rise the average prices of the products within the country. In order to grow, people have to able to sustain a strong financial condition, so a condition where average prices is low is far more favourable.

hope this helps
4 0
3 years ago
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