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
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.

You might be interested in
Foxburg Company has the following information: Work-in-Process Finished Goods Materials Beginning inventory$1,250 $1,350 $1,450
klasskru [66]

Answer:

$22,200

Explanation:

Particulars                                        Amount

Cost of Goods Sold                          $19,400

Ending inventory Finished Goods   <u>$2,800</u>

Cost of goods available for sale    <u>$22,200</u>

6 0
3 years ago
Can a server be too attentive to their patrons? Explain.
Vedmedyk [2.9K]
Yes, hovering over customers can make them feel uncomfortable in, for example, having a conversation because of another set of ears listening and constantly being interrupted
3 0
3 years ago
A new ad for the shampoo brand Better Not Younger focuses on how its products make aging hair feel softer, which is the ________
Anvisha [2.4K]

Answer: product benefit

Explanation:

When advertising a particular product, the product benefit simply means the benefits that the consumers will enjoy when they bunch such products.

In this case, Better Not Younger focuses on how its products make aging hair feel softer, therefore thus is the product benefit as this is what the consumers will enjoy when they purchase it.

7 0
3 years ago
1. Select the correct statement regarding relevant costs and revenues.
Gala2k [10]

Complete Question:

1. Select the correct statement regarding relevant costs and revenues.

A. Sunk costs are not relevant for decision-making purposes.

B. Relevant costs are frequently called unavoidable costs.

C. Direct labor is an example of a unit-level cost.

D. Only variable costs are relevant for decision making.

Answer:

1. A

2. D

3. B

Explanation:

1. The correct statement regarding relevant costs and revenues is that sunk costs are not relevant for decision-making purposes. Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

2. Expected future revenues that differ among the alternatives under consideration are often referred to as differential revenues. It is the difference in revenues among two (2) alternatives, which would influence decision making.

3. The benefits sacrificed when one alternative is chosen over another are referred to as opportunity costs. It is also referred to as alternative forgone.

<em>For example, Tony gives up going to see a new movie at the cinema in order to prepare for an examination, so as to get a good grade</em>.

8 0
4 years ago
Anne, a beautician by profession, owns a salon in the small town of franklin, new jersey. every weekend, she makes it a point to
madam [21]
Anne is conducting market research by doing a competitive analysis.

Hope this helps! :)
6 0
4 years ago
Other questions:
  • Assuming a FICA tax rate of 7.65% on the first $127,200 in wages, 1.45% on amounts in excess of $127,200, and a federal income t
    14·1 answer
  • Lebron james, stephen curry, and other athletes are paid huge sums of money by companies for celebrity endorsements. if endorsem
    6·1 answer
  • Business partnerships must involve partners who are willing to do which of the following
    5·1 answer
  • Flannigan Company manufactures and sells a single product that sells for $620 per unit; variable costs are $372. Annual fixed co
    9·1 answer
  • Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in
    15·1 answer
  • Use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance
    10·1 answer
  • Charles heads the human resource department at technology development company Schultz Inc. There, he monitors trends of the labo
    7·1 answer
  • Which transaction would cause one asset to increase and another asset to decrease?
    5·1 answer
  • Avent, Inc. is a real estate investment company located in Boston, Massachusetts. Avent was approached by a property owner in No
    10·1 answer
  • A 65-year old individual has just retired after working for the same employer for 20 years. He will collect an annual pension be
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!