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sdas [7]
3 years ago
9

Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the c

urrency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:A. $100 million increase in the money supply.B. $100 million decrease in the money supply.C. $200 million increase in the money supply.D. $500 million increase in the money supply.
Business
1 answer:
Alja [10]3 years ago
7 0

Answer:

Option (D) is correct.

Explanation:

Given that,

Amount of securities purchased = $100,000,000

Reserve requirement ratio = 20 percent

Money multiplier:

= 1 ÷ Reserve requirement ratio

= 1 ÷ 0.20

= 5

Increase in money supply:

= Money multiplier × Amount of securities purchased

= 5 × $100,000,000

= $500 million

Therefore, the total impact on the money supply will be a $500 million increase in the money supply.

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A local art gallery keeps information on its customers regarding their preferences forcertain artists as well as the style of ar
notsponge [240]

Answer:

A - Value co - creation

Explanation:

Value co - creation is a strategy that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. with this strategy,  consumers get exactly what they want and are involved in making it happen. So the Art gallery using such information is clearly using a value - co creation strategy to build loyalty among its customer.

4 0
3 years ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

5 0
3 years ago
The seven main functions of marketing summarize what it takes to _____.
Nutka1998 [239]

Explanation:

The seven functions of marketing are distribution, market research, setting prices, finance, product management, promotional channels and matching products to consumers

I guess this may help

4 0
3 years ago
A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000
Allushta [10]

Answer:

e. $ 282,000

Explanation:

To determine the assets of the company at year end, we need to find the equity at year end, this is calculated as follows:

Opening Equity                                                      $ 145,000

Net Income for the year                                        $ 45,000

Revenues     $ 210,000

Expenses     $ 165,000

Equity at end of year                                            $  190,000

The accounting equation is

Assets = Liabilities + Stockholders' Equity

Assets = $ 92,000 + $ 190,000                           $ 282,000

4 0
3 years ago
Do you believe the government would enact Martial Law? Why or why not?
Mademuasel [1]

Answer and Explanation:

Martial Law is a state in which a territory is occupied by a country's military forces to restore or impose order under certain emergencies. Some rights such as the right to free transit, speech, and protection could be suspended during the time the Martial Law lasts.  

Rumors of Martial Law arose in the U.S. as a result of the COVID-19 Coronavirus spread (2020). Quarantine has been declared worldwide and different countries have imposed Martial Law to control the number people infected by the disease but not particularly in the U.S. In most metropolis it would be necessary since the closest people live the highest the risk of infection but that is not the case of most states in the U.S. Therefore, it is unlikely a Martial Law will be enacted.

6 0
3 years ago
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