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Marina86 [1]
3 years ago
9

Assume the reserve requirement is 10%. First National Bank receives a deposit of $5,400. If there is no slippage, how much could

the money supply expand?
Mathematics
1 answer:
d1i1m1o1n [39]3 years ago
8 0

Given:


Reserve requirement = 10%
Deposit = $5400

Find:

money the supply could expand = ?


Solution:

Money Supply = Monetary Base × Money Multiplier

Before we determine the money supply, the money multiplier must already be determined. Therefore:
$5400 (0.10) = $540

In this case, adding the two will give us the money supply
$5400 + $540 = $5940

 

Nevertheless, not all money is lent out or spent. Kept money reduces the money supply.

The restrain to the growth of the money supply when deposits expand are identified by 2 factors:

1.       The amount above (excess reserves) what they are required to hold are being kept.

2.       Their income rises as the public has the penchant to hold more cash as their income.

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Answer:

x = 23

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PLEASE HELP <br><br> I am confused on these equations
mamaluj [8]

Answer:

See below.

Step-by-step explanation:

I'll show you step by step how to do the synthetic division.

You are dividing polynomial -6x^4 + 22x^3 + 3x^2 + 15x + 20 by x - 4.

From the polynomial, you only need the coefficients in descending order of degree as they are written.

         -6    22    3    15    20

In synthetic division, you divide by x - b. You are dividing by x - 4, so b = 4.

The 4 is written to the left of the coefficients of the polynomial.

      ___________________

4   |       -6    22    3    15    20

      ___________________

This is what the setup looks like. You can see it in the problem you were given.

The first step is to just copy the leftmost coefficient straight down to below the line.

      ___________________

4   |       -6    22    3    15    20

      ___________________

             -6

Now multiply b, which is 4, by -6 and write it above and to the right.

     ___________________

4   |       -6    22    3    15    20

                    -24

      ___________________

            -6

Add 22 and -24 and write it next to -6.

     ___________________

4   |       -6    22    3    15    20

                    -24

      ___________________

             -6     -2

Multiply 4 by -2 and write it above and to the right. Add vertically.

     ___________________

4   |       -6    22     3    15    20

                    -24   -8

      ___________________

             -6     -2    -5

Multiply 4 by -5 and write it above and to the right. Add vertically.

     ___________________

4  |       -6    22     3    15    20

                    -24   -8   -10

      ___________________

             -6     -2    -5   -5

Multiply 4 by -5 and write it above and to the right. Add vertically.

     ___________________

4   |       -6    22     3    15    20

                    -24   -8   -10   -20

      ___________________

             -6     -2    -5   -5      0

The 4 numbers in the second line are the coefficients of the quotient.

The quotient is 1 degree less than the original polynomial.

The quotient is: -24x^3 - 8x^2 - 10x - 20

The last number on the third line is the remainder. Since here the reminder is zero, that means that this division has no remainder. The remainder is 0/(x - 4)

Fill in the boxes with:

-24, -8, -10, -20

-6, -2, -5, -5, 0

-24x^3 - 8x^2 - 10x - 20

0

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