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sladkih [1.3K]
3 years ago
8

Suppose your grandma sends you $100 for your birthday and you deposit $100 into your checking account at the local bank. The res

erve ratio is 10%. Based upon this deposit, the bank's excess reserves have increased by _____ and, if the bank lends all excess reserves, the money supply could eventually grow by as much as _____.
Business
1 answer:
muminat3 years ago
3 0

Answer:

$90; $900

Explanation:

Given that,

Amount of deposits = $100

Required reserve ratio = 10%

Required reserves:

= Amount of deposits × Required reserve ratio

= $100 × 10%

= $10

Excess reserves = Deposits - Required reserves

                           = $100 - $10

                           = $90

Money multiplier:

= 1/ Required reserve ratio

= 1/ 0.1

= 10

Money Supply:

= Amount of excess reserves used for lending × Money multiplier

= $90 × 10

= $900

The money supply could eventually grow by as much as $900.

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You are given an investment to analyze. the cash flows from this investment are end of year 1. $19,340 2. $2,280 3. $26,600 4. $
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PW = FW×(1+i)^-n

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A research __________ is any material that can be used to locate information about a given topic.
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Read 2 more answers
You just won the grand prize in a national writing contest! As your prize, you will receive $500 a month for 50 months. If you c
max2010maxim [7]

Answer:

<u>Prize is $22,071.39 worth today</u>

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n - no. of periods = 50

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2 years ago
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The name for minimum energy expended to keep a resting, awake body alive is basal metabolic rate. This represents about 60% to 70% of total energy expenditure.

What is basal metabolic rate?

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Learn more about basal metabolic rate (BMR) here: brainly.com/question/27976523

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4 0
1 year ago
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