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OlgaM077 [116]
3 years ago
9

Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reser

ves. A customer deposits $6,000 in her checkable deposit. As a result of the deposit, required reserves will increase by:
Business
1 answer:
Mice21 [21]3 years ago
7 0

Answer:

the required reserves will increase by 1,200 dollars

Explanation:

the required reserve ratio is 20%

for each dollar the bank receive in deposit it can loan up to 80% and must keep 20%

the multiplier will be: 1 / 0.2 = 5

each dollar of deposit will increase the money supply by 5

and each dollar withdraw will decrease money supply by 5

Therefore, for this deposit of 6,000 dollars the bank will kept:

$6,000 x 20% = $1,200

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An U.S. company buys a new industrial sewing machine from a company located in France. This would cause: Group of answer choices
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Consider the market in which clothing producers operate. Suppose productivity decreases in the factory producing jeans. Explain
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Consider the market in which clothing producers operate. Suppose productivity decreases in the factory producing jeans. Explain how this event will change the quantity of jeans supplied and the supply of jeans today.

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Ace Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outs
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