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storchak [24]
3 years ago
15

The Fed purchases $200 worth of government bonds from the public. The reserve requirement is 8 percent, people hold no currency,

and the banking system keeps no excess reserves. The U.S. money supply eventually increases by _________.
a. $25.b. between $200 and $300.c. $1,600.d. $2,500.
Business
1 answer:
jolli1 [7]3 years ago
4 0

Answer:

The correct answer is $2,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

Deposits = $200

Reserve requirement ratio = 8%

So, we can calculate the Increase in money supply by suing following formula:

Increase in money supply = Deposit ÷ Reserve requirement ratio

By putting the value, we get

= $200 ÷ 0.08

= $2,500.

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McGraw purchased an antique rocking chair from Tillis by check. The check was dishonored by the bank due to insufficient funds.
LekaFEV [45]

Answer:

Option C is the correct option.

Explanation:

As the rights and obligation of the antique rocking chair are been passed to third party, so the damage caused by the checque been bounced is the monetry consideration agreed between the party to the contract, McGraw and Tellis. So Tellis may recover money damages from McGraw. However there is a special condition that can allow Tellis recover his asset from Rio if the third party knew before purchase of this asset, that the checque paid to Tellis by McGraw was dishonoured but still he contracted with McGraw to acquire the antique rocking chair.

Overall the option C is the correct option with which the case scenario relates.

3 0
3 years ago
If a car company collaborated with a sheet metal supplier, the car company would be the supplier's ______. Multiple choice quest
kotykmax [81]

A car company would be called a <u>supplier's corporate partner</u> if its collaborated with a sheet metal supplier.

<h2>What is corporate partner?</h2>

A corporate partnership means a beneficial relationship between two separate company for specific purpose.

Here, the car company and sheet metal supplier are corporate partners because they have a specific purpose they serve there selves.

In conclusion, the car company would be called a <u>supplier's corporate partner</u> if its collaborated with a sheet metal supplier.

Read more about corporate partnership

<em>brainly.com/question/14034519</em>

8 0
3 years ago
If the managers of HHH Enterprises were to commit to an investment project under consideration, they would obtain 40% of the mon
Mamont248 [21]

Answer:

D. 9.44%

Explanation:

The computation of the weighted average cost of capital is shown below:

Weighted average cost of capital is

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 8% × (1 - 0.30) × 40% + 12% × 60%

= 2.24% + 7.2%

= 9.44%

Hence, the weighted average cost of capital is 9.44%

Therefore the right option is D.

6 0
3 years ago
When you begin working, you will most likely be both a _____ and a _____ in a market economy.
laila [671]
Producer & Consumer should be the correct answer
6 0
4 years ago
Read 2 more answers
2. Explain the strengths of a sole proprietorship and wn
adoni [48]

Explanation:

strengths:

1. He or she enjoys all the profit

2. easy to start up

3. decision making is quick

4.he or she can vary the hours of work

weakness:

1.there is lack of finance

2. lack of specialised staff

3.the owner bears all the risk

4.there is unlimited liability

who might start a sole proprietor business

1. a person that wants to be their own boss.

2.extra income.

3.the entrepreneur might think he will make more money working for his self than others.

6 0
3 years ago
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