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astra-53 [7]
4 years ago
13

5. Consider the supply chain involved when a customer orders a book from Amazon. Identify the

Business
1 answer:
emmainna [20.7K]4 years ago
6 0

Answer:

1. At pull stage Customers request for books. A pull system by Amazon was made through the use of ingram book group. They support booksellers in supply and demand of book buyers

2. The push strategy is made through the development of several warehouses. Procurement of inventory is done and peoples orders are sent out by utilizing pull strategy.

Processes in pull strategy:

1. Shipping

2. Order fulfilment

Processes in push strategy:

1. Stock replenishment

2. Production

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Answer: Option B.

<u>Explanation:</u>

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Suppose the Federal Reserve sets the reserve requirement at 20%, banks hold no excess reserves, and no additional currency is he
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The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Given,

The Federal Reserve sets the reserve requirement at 20%.

Banks hold no excess reserves, and no additional currency is held.

  • The money multiplier displays the amplitude of the change in the money supply as a result of the addition of new reserves to the banking system.
  • Banks use the money they are not obligated to retain in reserve to make loans, and the borrowed money shows up on other customers' deposit accounts.
  • In macroeconomics, the money multiplier is significant because it controls the money supply, which influences interest rates.
  • Because it affects monetary policy and the stability of the banking industry, it is also significant in the banking industry.

The money multiplier formula can be used to calculate the total amount of new deposits or money created.

Money multiplier = 1/reserve ratio

                            = 1/0.20

                            = 5

change in Total money supply = Money multiplier × change in reserves

                                 = 5 × $400 million

                                 = $2,000 million

Hence, The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Learn more about Federal Reserve Bank:

brainly.com/question/999538

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