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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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You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 29%. The T-bill rate is 8%. Your

Anastasy [175]

Answer:

13.85% and 18.9%

Explanation:

As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:

$E(r)=r_{1}*w_{1} +r_{2}*w_{2} +....+r_{n}*w_{n}$

where E(r) is the expected return, $r_{i}$ is the return of the i asset and $w_{i}$ is the investment in i asset, so applying to this particular case we have:

$E(r)=17\%*65\%+8\%*35\%$

$E(r)=13.85\%$

the calculation of standar deviation follows the same logic of the previous formula:

$Sigma(r)=29\%*65\%+0\%*35\%$

$Sigma(r)=18.9\%$

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4 years ago

Year

Sophie [7]

Consumer sentiment suddenly crashes below early-pandemic levels in the US #accelerationism

5 0

3 years ago

Governments use monetary tools to manage economies such as

Juliette [100K]

The Federal Reserve uses monetary policy to manage economic growth, unemployment, and inflation. It does this to influence production, prices, demand, and employment. Expansionary monetary policy increases the growth of the economy, while contractionary policy slows economic growth.

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3 years ago

Gershwin Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of $180,000 on April 1, 2014. The franchis

ikadub [295]

Answer:

Explanation:

The journal entry is shown below:

On April 1

Franchise A/c Dr $180,000

To Cash A/c $18,0000

(Being the purchase of a franchise is recorded)

On December 31

Franchise Amortization Fee A/c Dr $13,500

To Franchise A/c $13,500

(Being the franchise amortization fee is recorded)

The computation is shown below:

= $180,000 ÷ 10 years × 9 months ÷ 12 months

= $13,500

8 0

4 years ago

On November 21, 2021, a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge est

GuDViN [60]

Answer:

$142,800

Explanation:

Calculation for the estimated loss on the inventory from the fire, using the gross profit method.

First step is to find the Cost of Goods available for sale

Cost of Goods available for sale = $180,000+$156,000

Cost of Goods available for sale= $336,000

Second step is to find the cost of Goods Sold

Cost of Goods Sold = $236,000 - 30%

Cost of Goods Sold = $165,200

Third step is to find the Cost of Goods Sold

Cost of ending inventory = $336,000 - $165,200

Cost of Goods Sold = $170,800

Last step is to calculate the Estimated loss from fire using this formula

Estimated loss from fire= Cost of Goods Sold - Estimated usable damaged goods

Let plug in the formula

Estimated loss from fire= $170,800 - $28,000

Estimated loss from fire= $142,800

Therefore the estimated loss on the inventory from the fire, using the gross profit method will be $142,800

6 0

3 years ago