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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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The industrial organization (I/O) model of above-average returns:
lara [203]

Answer:

The answer is A) Puts emphasis on the external environment, which plays a role in determining a company´s ability to achieve above-average returns.

Explanation:

The I/O Model of Above-Average Returns basically assumes that the industry in which a company decides to compete in has a much larger influence on performance (earnings and profit) than the choices the managers of this company make.

The basic assumptions of this organization model are:

  • The external environment imposes pressures and constraints that determine the strategies of the company and will result in above average returns.
  • It assumes competing companies control similar strategically relevant resources and pursue similar strategies.
  • Resources are highly mobile across companies, so that any differences that might develop between companies will be short-lived.
  • Decision-makers within the company are assumed to be rational and committed to acting in the company´s profit-maximizing behaviors.

8 0
3 years ago
Robert works for a manufacturing company. His job profile requires that he keep track of the amount of raw materials that the bu
Schach [20]

Answer:

B. Inventory control

Explanation:

Inventory is the term used to describe products in the various stages of production. Inventory refers to the raw materials used to make products, goods partially produced( work -in -progress), and the finished goods awaiting sales.

Robert's responsibilities revolve around inventory control. He is part of the supply chain team that coordinates material movement from the source, in the production process, and delivery to the market.

6 0
3 years ago
The part of the subfield of cultural anthropology that debates issues of human nature that relate directly to the decisions of d
boyakko [2]

Answer:

Economic anthropology

Explanation:

  • The Economic anthropology as subfield that explains that the humans economic behavior and anthropology have a complex relation with economics as the field focuses on an the exchange, the production, and consumption.
  • They study the operations of the corporations, banks, and the global financial perspective.
  • <u>With the rise of the globalized economies, the anthropologists are analyzing the cultural situations as the universal applicability of money is being used as a means of revealing the culture by money that market based societies have formed.</u>
6 0
3 years ago
Genting Berhad is a Malaysian conglomerate with holdings in plantations and tourist resorts. The beta estimated for the firm rel
ehidna [41]

Answer:

25.3%

Explanation:

The expected return can be determined using the capital asset pricing model

The expected return = risk free return + (risk premium x beta)

11.5% + (1.15 x 12%) = 25.3%

3 0
3 years ago
A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for chur
soldier1979 [14.2K]

Answer:

a. The cost of the marble will be expensive because of the bargaining power of the supplier.

Explanation:

As the marble her provided is only used for the common public buildings and churches. This is basically the best use of the marble, as the quality is high and used in best architecture in the economy.

Therefore, it clearly states the value of marbles, which is generally expected to be high, and as it is used in public buildings the supplier will not allow the purchaser to bargain. This is because the bargain power of the purchaser will be low, and as there is high demand.

Accordingly price will be high.

7 0
3 years ago
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