1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Orly uses 2 cups of raisins for every 8 cups of trail mix she makes. How many cups of trail mix will she make is she uses 12 cup
allsm [11]
You have a 2:8 ratio, or 1:4.  Since you have 12 cups of raisins, you're going to get the answer 48.
8 0
3 years ago
Read 2 more answers
What must be the value of x?
tangare [24]
Type the question out
7 0
2 years ago
Read 2 more answers
I’m confused on this question, please help me. (Ignore the black coloring, sorry.)
neonofarm [45]
To answer this question you will find out the total number of cupcakes donated and then calculate the amount of each flavor based on the percentage that is stated.

Here are the steps:

1. 12 x 10 x 12 (12 classes each donating 10 dozen) = 1440

2. 0.55 x 1440 (55% are chocolate) = 792 chocolate

3. 1440 - 792 (the remaining number of cupcakes)=648

4. 1/3(33 1/3%) x 648 = 216 red velvet

5. 1440 - 792 (chocolate) - 216 (red velvet) = 432 vanilla cupcakes

Chocolate-792
Red velvet - 216
Vanilla - 432

3 0
3 years ago
Your friend says 8,705 divided by 1000 is equivalent to 8705 times 0.001. Is your friend correct? Explain
irakobra [83]

Answer:

yes

Step-by-step explanation:

8705/1000 = 8705*0.001

8.705 = 8.705

3 0
3 years ago
Due to inflation, a fixed quantity of money can buy 3% less every year. If Pam has enough in her wallet to buy 47 movie tickets
Nitella [24]
3% x 10 years is 30%. 47 - 30% is 14.1 or 14
7 0
2 years ago
Other questions:
  • Which graph represents a function?
    11·1 answer
  • The total third grade class is twice as large as Hillary’s and Jamiz’s classes. How many third graders are there?
    7·1 answer
  • How do I find the % of something like what is 6.2 %of $2768.00
    12·1 answer
  • The following dot plot shows the number of books each student checked out from the library last month. Each dot represents a dif
    11·2 answers
  • How did they get from 273 9/45 to 272 54/45? Thanks.
    10·1 answer
  • Round 40.2 to the next number
    7·1 answer
  • What is the equation of the graph below?
    5·1 answer
  • The domain of F(x) = logo b x is the set of all real numbers. O A. True B. False​
    11·1 answer
  • Please help me with this guys and it select all that apply
    15·1 answer
  • Find the value of x<br> Hurry please
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!