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FromTheMoon [43]
3 years ago
15

Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve Banks buy $3 billion in government s

ecurities, the lending ability of the commercial banking system will increase by _____.
Business
1 answer:
faltersainse [42]3 years ago
5 0

Answer:

The lending ability will increase by $2.25 billion.

Explanation:

The reserve requirement is given at 25%.

If federal reserve bank buys $3 billion in government securities, the total reserve will increase by $3 billion.

The excess reserve will be

=Increase in total reserve-required reserve

=$3 billion-25% of $3

=$(3 billion- .25*3) billion

=$(3-0.75) billion

=$2.25 billion

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In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.
kupik [55]

Explanation:

A. When microchip used in smartphones become less costly to produce, the supply of smartphones are going to increase, causing a fall in equilibrium price and a rise in equilibrium quantity.

since one of the resources used to make smartphones has become cheaper, more smartphones would be produced, raising its supply, increased supply causes fall in price and rise in equilibrium quantity.

B. since the ALS bucket challenge went viral, supply and demand for research would increase, causing equilibrium price or opportunity cost to either rise or remain unchanged. the equilibrium quantity will then rise, fall or remain unchanged

7 0
3 years ago
List any 5 important of wetland​
antiseptic1488 [7]

Answer:

Wetlands are highly productive and biologically diverse systems that enhance water quality, control erosion, maintain stream flows, sequester carbon, and provide a home to at least one third of all threatened and endangered species. ... improve water quality. provide wildlife habitat. maintain ecosystem productivity.

8 0
3 years ago
A(n) ________ may occur if a major shareholder desires to sell a large number of shares but the market for the shares is not suf
Naddika [18.5K]

Answer:

Targeted Repurchase

Explanation:

According to my research on the Stock Market, I can say that based on the information provided within the question this situation can cause a Targeted Repurchase to occur. This is when the target firm purchases back its own stock from a hostile bidder, usually at a much higher price than what is currently offered as market value.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
When conducting a swot analysis, budgets, ratios, and sales reports can be used to identify:?
Amanda [17]
The answer to this question is <span>Company strengths and weaknesses.
In this context, company strength refers to all the factors that make the company stand out among other competitors in the market (such as good products, fame, good researchers, etc)
The weakness, on the other hand, refers to something that needed to be taken care of if the company want to win the competition in the market. (such as huge debt ratio, scandals, etc)

</span>
5 0
3 years ago
The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound of butter they sup
Tamiku [17]

Answer:

a) he equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) 0 or no surplus.

Explanation:

The question is in three parts

a) a. In the butter market, the monthly equilibrium quantity is million pounds and the equilibrium price is $ per pound

The equilibrum price and quantity refers to that point in sales where the quantity demanded = the quantity supplied.

Looking at the schedule, the equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?

First, what is the price floor fixed by the government = $1.00 per pound and at this rate, the demanded quantity is 101 million and the quantity supplied is 79 million pounds.

Hence, the monthly surplus = 79 million pounds - 101 million pounds = -22 million pounds

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7 0
3 years ago
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