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2 years ago

the level of reserves (depositor funds held back from making loans) is very important in determining the money supply.

1 answer:

4 0

It's true that the amount of reserves depositor money withheld from funding loans plays a significant role in influencing the money supply.

All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.

Governments issue coin and paper money through a mix of national treasuries and money supply, central banks. By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.

By regulating interest rates and altering the amount of money flowing through the economy, economists study the money supply and create policies based on it. Because the money supply may have an impact on price levels, inflation, and the business cycle, both the public and private sectors conduct analyses. The most significant determining factor in the money supply in the United States is Federal Reserve policy. The term "money stock" also applies to the money supply.

Learn more about money supply here

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In the DuPont Model, return on equity (ROE) is dependent on the firm's:

Anna35 [415]

Answer:

A. Net margins, debt leverage, and asset turnover.

Explanation:

ROE = (Net income / sales) x (sales / total assets) x (total assets / shareholders equity)

I hope my answer helps you

8 0

3 years ago

The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re

tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

exploratory,
descriptive, or
explanatory.

So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0

3 years ago

On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S

zepelin [54]

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

6 0

3 years ago

A man aged 40 wishes to accumulate a fund for retirement by depositing $1,000 at the beginning of each year for 25 years. Strati

Firdavs [7]

Answer:

The man will made 15 drawins for 31,468 at their retirement age.

Explanation:

We solve for the future value of the annuity-due (deposits at the beginning)

$C \times \frac{(1+r)^{time} -1}{rate}(1+r) = FV\\$

C 1,000.00

time 25

rate 0.04

$1000 \times \frac{(1+0.04)^{-25} -1}{0.04}(1+0.04) = PV\\$

FV $375.1168

Now, we calcualte the amount of the withdrawals considering the new rate:

$PV \div \frac{1-(1+r)^{-time} }{rate}(1+r) = C\\$

$375.116802253964 \div \frac{1-(1+0.035)^{-15} }{0.035}(1+0.035) = C\\$

C $ 31.468

7 0

3 years ago

Once a customer has committed to a partnership, less work is needed to maintain the relationship.

alex41 [277]

The answer to the given statement above is false, it is because even if a person has entered a partnership, it does not mean less work and effort should be done to maintain the relationship because having no effort in maintaining this relationship could only cause the bond to diminish and destroy. It is best to have an equal amount of work done in order to maintain a relationship with the partner.

4 0

3 years ago