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rosijanka [135]
3 years ago
12

The balance sheet below reflects Zee Bank after its purchase of $50 million in government securities from the Fed. Assume a requ

ired reserve ratio of 10%, that banks hold no excess reserves, and all currency is deposited into the banking system. Assets Liabilites and net worth Reserves $15 million Liabilities: Checking Deposits $150 million Loans $275 million Net Worth $190 Treasuries $50 million How did the purchase of $50 million in government securities from the Fed affect the money supply
Business
1 answer:
UkoKoshka [18]3 years ago
3 0

Answer:

$500 million

Explanation:

The solution of the money supply and its effect is here below:-

Decrease in money supply = $50 million ÷ reserve ratio

= $50 million ÷ 10%

= $500 million

If $50 million were used to repay loans, that will have raised money supply. Thus, buying $50 million in government securities from the fed reduces the supply of capital.

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spayn [35]

The results are inconclusive; Therefore a generalization cannot be made regarding which option is selected more often.

What is generalization and why is it important?

The ability to carry out a task, engage in an activity, or exhibit behavior in many contexts, with various people, and at various times is known as generalization. We have "generalized" the necessary skills, which explains why we can carry out routine tasks in a range of contexts and settings.

How can generalization be improved?

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Learn more about network size: brainly.com/question/1825455

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6 0
11 months ago
On January 1, 2016, Ott Company sold goods to Fox Company. Fox signed a noninterest-bearing note requiring payment of $60,000 an
inessss [21]

Answer:

D. 321,600.

Explanation:

Present value is the current value of a future amount that is to be received or paid out.

Given:

Present value, P = $60000

Present value of ordinary annuity for the remaining 6 years = 4.36

The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments

Sales revenue = $60000 + (60,000 × 4.36)

= $60000 + $261,600

= $321,600

Thus, sales revenue of $321,600.

3 0
3 years ago
Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected stock sales price of $60, and a require
sineoko [7]

Solution:

The most common tool used to measure the valuation of the stock is the ratio of price to earnings. It's easy to access, and the data is readily accessible. The P / E ratio is determined by measuring the price of the stock by the sum of its 12-month trailing profits.

Given,

Dividend of $0.11

Expected stock sales price of $60

RRR 10%

The current price of the stock would be : 60 * 0.10 * 0.11 = 66

7 0
3 years ago
Simone and Ana are debating the pricing strategy of several airlines. Simone argues, "When airlines restrict discounted tickets
SpyIntel [72]

Answer:

Economists will agree more with Ana

Explanation:

Price discrimination is defined as the selling of the same product to different customers at different prices.

The difference in price charged is usually due to willingness of the customer to buy at different prices.

In the given scenario buyers that are willing to buy in advance and stay over form a category of clients that have a price band unique to them.

Others will buy at a higher price.

This has caused a price discrimination

6 0
2 years ago
Waitstaff at restaurants typically do what?
Aleksandr-060686 [28]
Option A, but even that is not a requirement.
Hope it helps!
7 0
3 years ago
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