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Dvinal [7]
3 years ago
13

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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Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers f
gayaneshka [121]

Answer: The correct answer is "differentiated".

Explanation: This approach is called <u>differentiated</u> marketing since the firm deals with studying each segment, that is, tourism, defense and commerce, and identifying their needs to make individual offers to each segment instead of making general offers for all segments equally.

3 0
3 years ago
Big Canyon Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a p
PSYCHO15rus [73]

Answer:

6.32%

Explanation:

Bonds yield amount = $1,030 × 6.14% = $63.242

Coupon rate = Bond yield amount ÷ Par value of the bond = $63.242 ÷ $1,000 = 0.063242, or 6.32%

Therefore, the coupon rate on the bonds must be 6.32%.

4 0
3 years ago
Match each trade organization or agreement with its description.
Dominik [7]

Answer:

1. World Trade Organization

2. North American Free Trade Agreement

3. The European Union

Explanation:

a. World Trade Organization (WTO): Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries. The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world. It was established officially on the 1st of January, 1995.

b. North American Free Trade Agreement (NAFTA): Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries. It officially became effective on the 1st of January, 1994.

c. The European Union (EU): An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices. It was established officially on the 1st of November, 1993. Some of its member countries are Sweden, Italy, Germany, Portugal, Croatia, Russia, France, Spain, Netherlands etc.

8 0
3 years ago
What is total quality management (TQM)?
stepladder [879]

Answer:

A management systment which is based on the concept that In every aspect of the operation of a company, each employee must ensure the high quality of work. This system enhances the employees efficiency and capability as well. Its main objective is the customer satisfaction and make a value of product through Quality work. In this system employees continuously improve their skills.

6 0
3 years ago
Shamrock Company had net income of $34,000. The weighted-average common shares outstanding were 8,500. The company declared a $3
Leni [432]

Answer:

d) $4.00.

Explanation:

Net Income = $34,000

Common shares outstanding = 8,500 shares

Earning Per share = Net Income for the period / Common shares outstanding

Earning Per share = $34,000 / 8,500 shares

Earning Per share = $4 per share

The company's earnings per share is $4.

Divided declared has nothing to do in the calculation of Earning per share because we just measure the earning against each share which involves net income and number of outstanding shares only.

3 0
3 years ago
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