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saw5 [17]
3 years ago
13

The money supply is $6,000,000, currency held by the public is $2,000,000 and the reserve-deposits ratio is 0.25. Find deposits,

bank reserves, the monetary base and the money multiplier. PART 2: In a different economy, vault cash is 1,000,000, deposits by depository institutions at the central bank are 4,000,000 the monetary base is 10,000,000 and bank deposits are 20,000,000. Find bank reserves, the money supply, and the money multplier
Business
1 answer:
Elenna [48]3 years ago
6 0

Answer:

Please find the detailed answer below.

Explanation:

PART 1:.

a. Deposit = money supply - currency held

$6,000,000 - $2,000,000

= $4,000,000

b. Bank reserve is reserve-deposit ratio x deposit

0.25 x $4,000,000

=$1,000,000

c. Monetary base = currency held + bank reserve

$2,000,000 + $1,000,000

=$3,000,000

d. Money multiplier= money supply/monetary base

$6,000,000/$3,000,000

=2

PART 2.

a. Bank reserve

$4,000,000 + $1,000,000

=$5,000,000

b. Money supply= currency held + bank deposit

Currency held= base - reserve

$10,000,000 - $5,000,000

= $5,000,000

Therefore money supply is

$5,000,000 + $20,000,000

=$25,000,000

c. Money multiplier= money supply/monetary base

$25,000,000/$10,000,000

=2.5

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Dmitriy789 [7]

Answer:

groupware

Explanation:

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3 0
4 years ago
The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This
arsen [322]

Answer: A. Stability and change

Explanation:

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

A) stability and change.

B) structure and culture.

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D) stability and metrics

The paralysis that occurs between sticking to existing products and services (stability) and the need for the development of new ones (change) is a direct effect of the innovation paradox which states that the more a firm pays attention to innovation, the less likely it will be to be successful at innovation. In other words, consistency in products and services provokes a tension with the need for new products. While stability enables change in that it supplies security and consistency, reserved knowledge and skills and enables commitment and the provision of resources for a better realization and actualization of change, change enables a firm to set up a new state of stability through variable mechanisms (innovation) This serves to assist an organization in reaching new stable stages with higher efficiency.

8 0
3 years ago
The x games promotes its product to consumers who exhibit an extreme sport lifestyle. this is an example of:
Alexxandr [17]
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4 0
4 years ago
A bookstore expects to sell 120 calculus textbooks during the next year. It costs $1.50 to store one calculus textbook for one y
bonufazy [111]

Answer:

Bookstore A

The lot size that minimizes costs = 19

The number of times per year to place an order = 6 times.

Explanation:

a) Data and Calculations:

Expected sales units during the next year = 120 calculus textbooks

Cost of storing one calculus textbook for one year = $180 ($1.50 * 120)

Reorder cost = $274 ($10 + $2.20 * 120)

Lot size of order = square root of (2 * 120 * $274)/$180

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= square root of 365

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Number of times per year to place order = 6 (120/19)

4 0
3 years ago
Hercules movers pays a constant annual dividend of $1.75 per share on its stock. last year at this time, the market rate of retu
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Capital gain is computed in the formula below:

Capital gain= [(Current price-Original price)/ Original price ]x100
If stocks before
Original price =$1.75 x (1+14.8%)
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Current  price = $1.75 x(1+11.2%)
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Capital gains yield = [($1.956-$2.009)/($2.009)]x100
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Capital loss of 26.4% because the stock value decreased.
8 0
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