All categories

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

brainly.com/question/24249291

#SPJ4

You might be interested in

What is photo synthesis?

Vlad1618 [11]

Answer:

photo synthesis is the process in which green plants use water and carbon dioxide to create their food.

8 0

3 years ago

Investors are willing to purchase stocks having high P/E ratios because:

skelet666 [1.2K]

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

4 0

3 years ago

Only people who own property need insurance<br><br><br>true or false

MAVERICK [17]

Answer:

false

Explanation:

pretty sure that is false as one can have life insurance without property.

Still double check...

5 0

3 years ago

What is the policy that allows business to operate with little or no government interference?

Feliz [49]

The answer is most like a Market Economy

7 0

3 years ago

A trial balance consists of:Multiple ChoiceA two-column financial statement intended for distribution to interested parties outs

icang [17]

Answer:

A two-column schedule listing names and balances of all ledger accounts.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.

There are four (4) main types of financial statements and these are;

1. Balance sheet: it contains financial information about assets, liability, and equity.

2. Cash flow statement: it contains financial information about operating, financial and investing activities.

3. Income statement: it contains financial information about the income and expenses of an organization.

4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.

A trial balance consists of a two-column schedule listing names and balances of all ledger accounts.

5 0

3 years ago