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rosijanka [135]
4 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]4 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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Which of the following is an example of crowding out? Question 13 options: A decrease in the rate of growth of the money supply
Dmitriy789 [7]

Answer:

A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

Explanation:

In domain of economics, crowding out

can be regarded as a phenomenon which take place as a result of increased in involvement of government in market economy sector which substantially has effect on remainder of the market, this effect could be on the supply side, it could be on demand side of the market. An example of crowding out is A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

7 0
3 years ago
Which country increased their medal count the most from 2010-2018
Vika [28.1K]
 Korea has been steadily increasing their number of participants with every event.
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4 years ago
A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the
dimaraw [331]

Answer:

The minimum deposit will be of 3,081 and after 40 year it will get 1,000,000 dollars

Explanation:

We have to solve for the C of an annuity growing

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

g 0.05

r 0.06

C 3,081

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C \frac{1-(1+0.05)^{40}\times (1+0.06)^{40} }{0.06-0.05} = 1,000,000

C \times 324.57 = 1,000,000

C = 1,000,000/ 324.57 = 3,081

8 0
4 years ago
Sally Smith decided to start a sea shell business. Her initial investment in the business consisted of $10,000 in cash. Record t
tensa zangetsu [6.8K]

Based on the transaction that Sally engaged in, recording it will involve:

  • Debiting cash for $10,000.
  • Crediting equity for $10,000.

<h3>Recording Sally's transaction. </h3>
  • The cash transaction is an investment which will be recorded in the Shareholder's Equity account.
  • The investment came in cash so will go to the cash account.

When cash is increased as was the case here, it should be debited. When equity increases as was the case here once more, it is to be credited.

Find out more on shareholder's equity at brainly.com/question/26384373.

8 0
3 years ago
____ management encourages managers to make facts and logic the foundation of their approach to decision-making.
Gemiola [76]

Evidence based management encourages managers to make facts and logic the foundation of their approach to decision-making.

<h3>What is meant by evidence based management?</h3>

This s the term that has to do with the type of management that is more likely involved with the ability of a person to engage in critical thinking. It is the type of management that lays aside feelings and relies instead on the ability of people to think and come up with facts.

Hence we can ay that Evidence based management encourages managers to make facts and logic the foundation of their approach to decision-making.

Read more on evidence based management here; brainly.com/question/24847839

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7 0
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