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3 years ago

If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will

Business

2 answers:

poizon [28]3 years ago

7 0

Answer:

c) increase by more than $1 million

Explanation:

As the required reverve ratio is les than one the banks will lend a portion of the money whihc is deposits. This makes a multiplication of the amount of money which create through a secondary market (loans) Making possible the increase over a millon,

The reverse ratio goes from zero to one, being one a complete reserve when no loan is possible with the deposits.

zimovet [89]3 years ago

6 0

Answer:

C) increase by more than $1 million

Explanation:

The effect that an increase in the monetary base causes on the money supply is given by: change in monetary base x money multiplier

the money multiplier is calculated by dividing 1 over the reserve ratio, so if the reserve ration is less than 1, e.g. 0.5, then the money multiplier will = 1 / 0.5 = 2

Following the example, a $1 million increase in the monetary base will increase the money supply by: $1 million x money multiplier = $1 million x 2 = $2 million.

Since the reserve ratio is lower than 1, then the money multiplier will always be more than 1 (e.g. reserve ratio = 0.99, money multiplier = 1.01), so any increase in the monetary base will cause a larger increase in the money supply.

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The useful life of a new plant asset _____. is the same as the asset's total productive life. might not exceed one year. might b

gulaghasi [49]

Answer:

The correct answer is letter "C": might be estimated based on the experience of others or on engineering studies and judgment if the company does not have past experience with a similar asset.

Explanation:

A company's assets represent the cash, patents, accounts receivable, equipment, plants, and land, among others, useful for the firm to generate profit. When it comes to plant assets, they are considered fixed assets for cost accounting purposes and are nothing but the land, buildings and machinery useful for manufacturing.

Calculating the useful life of a plant asset can be complicated and may require engineering studies. However, if the expertise of an employee is good enough to determine it the firm must take advantage of this strength but if there is nobody with this capability the institution should look for someone who does moreover when it does not have experience computing the useful life of such assets.

8 0

3 years ago

Tariffs are used to encourage global trade between two countries. a. True b. False

ira [324]

Tariffs are intentional taxes on imports from other countries. They are used to drive taxes up so that goods made in the country are more attractive to consumers. Because of this, other countries retaliate and raise their taxes too.

The answer is B: False

3 0

3 years ago

Read 2 more answers

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction

VLD [36.1K]

Answer: -13.35%

Explanation:

Based on the information given in the question, the annual rate of return on this painting will be calculated thus:

Sales price of painting = $1,080,000

Cost price of painting = $1,660,000

The sales Price formula is given as

= Cost price × (1 +r)³

1080000 = 1660000 × (1+r)³

1,080,000/1,660,000 = (1+r)³

0.65 = (1 + r)³

Annual rate of return r will now be:

= 0.6506^⅓ - 1

= -13.35%

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3 years ago

A concentration ratio:

Masja [62]

Answer: Option (B) is correct.

Explanation:

Concentration ratio reflects the level of competition among the firms in an industry. When a concentration ratio is lower in an industry, it represents that greater the competition among the firms and if this ratio is around 100% then there is no competition among the firms, it is a situation of monopoly.

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3 years ago

Helen recently received a credit card with a nominal interest rate of 21 percent. With the card, she purchased some new clothes

Ludmilka [50]

Answer:

It will take 14.2 months before Helen pays off the card.

Explanation:

PV Ordinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]

C = Cash flow per period

i = interest rate

n = number of payments

250= 20*((1-(1+ 21/1200)^(-n*12))/(21/1200))

n(in years) = 1.19

Months = years*12 = 1.19*12 = 14.2 months

6 0

3 years ago