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
kondor19780726 [428]
2 years ago
9

You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and

there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 12 %, how much will your deposit increase the total value of checkable bank deposits? $ If the reserve requirement is 4 %, how much will your deposit increase the total value of checkable deposits? $ Increasing the reserve requirement the money supply.
Business
1 answer:
vfiekz [6]2 years ago
8 0

Answer:

a. $33,333

b. $100,000

c. No, it will not.

Explanation:

a. If the reserve requirement is 12 %, how much will your deposit increase the total value of checkable bank deposits?

Money multiplier = 1/r

Where,

r = reserve requirement = 12%, or 0.12

Therefore, we have:

Money multiplier = 1/0.12 = 8.33 times

This means that my deposit will increase the total value of checkable bank deposits 8.33 times. Therefore, we have:

The total value of checkable bank deposits = $4,000 * 8.33 = $33,333  

Therefore, the deposit will increase the total value of checkable bank deposits by $33,333.33.

b. If the reserve requirement is 4 %, how much will your deposit increase the total value of checkable deposits?

r = 4%, or 0.04

We therefore have:

Money multiplier = 1/0.04 = 25 times

This means that my deposit will increase the total value of checkable bank deposits 25 times. Therefore, we have:

The total value of checkable bank deposits = $4,000 * 25 = $100,000

Therefore, the deposit will increase the total value of checkable bank deposits by $100,000.

c. Will increasing the reserve requirement increase the money supply.

No, it will not.

From the above a and b, we can see that the lower the reserve requirement, the higher the money multiplier; while the higher the reserve requirement, the lower the money multiplier.

Therefore, increasing the reserve requirement will not increase the money supply.

You might be interested in
A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in Capital in Excess of Par Value, $
Nitella [24]

Answer:

b. number of shares issued is 80,000

Explanation:

In the question, the common stock par value and the total amount is given. Moreover, paid-in capital is also given.

So, if we compute it, then it gives the number of shares issued because it contains a formula which is shown below:

Number of shares issued = (Common stock ÷ Par value)

= ($80,000 ÷ $1)

= 80,000 shares

So, paid-in capital is not relevant in the computation part, and therefore, the other options are wrong except b. option.

7 0
3 years ago
Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no
kogti [31]

Answer:

The manufacturer should announce a guaranteed mileage of 44528 miles

Explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean \mu and standard deviation \sigma, the zscore of a measure X is given by:

Z = \frac{X - \mu}{\sigma}

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

\mu = 47900, \sigma = 2050

What guaranteed mileage should the manufacturer announce

Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.

Z = \frac{X - \mu}{\sigma}

-1.645 = \frac{X - 47900}{2050}

X - 47900 = -1.645*2050

X = 44528

The manufacturer should announce a guaranteed mileage of 44528 miles

6 0
3 years ago
Read 2 more answers
Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100
tamaranim1 [39]

Answer:

                        Bledsoe Corporation

Schedule of Cost of goods manufactured

Particulars                                      Amount

Direct materials:  

Beginning material inventory        $25,100.00  

Add: Purchases                              <u>$72,100.00</u>

Raw material available for use      $97,200.00  

Less: Ending material inventory    <u>$21,100.00</u>

Raw material used in production   $76,100.00  

Less: Indirect material                     <u>$4,010.00   </u>   $72,090.00

Direct labor                                                             $92,100.00

Manufacturing overhead applied                          <u>$41,100.00</u>

Total manufacturing costs                                      $205,290.00

Add: Beginning WIP                                                <u>$17,100.00</u>

Total cost of work in process                                 $222,390.00

Less: Ending WIP                                                     <u>$10,100.00</u>

Cost of goods manufactured                                 <u>$212,290.00</u>

                Bledsoe Corporation

                 Schedule of COGS

Particulars                                                    Amount

Cost of goods sold:

Beginning finished goods inventory        $48,100.00

Add: Cost of goods manufactured           <u>$212,290.00</u>

Cost of goods available for sale               $260,390.00

Less: Ending finished goods inventory    <u>$56,100.00</u>

Unadjusted cost of goods sold                 $204,290.00

Add: Underapplied overhead                   <u>$1,010.00   </u>($42,110 - $41,100)  

Adjusted cost of goods sold                    <u>$205,300.00</u>

3 0
2 years ago
A man has $34,000 to invest. He invests some of the money at 5% and the balance at 4%. His total annual interest income is $1545
notka56 [123]

Answer:

Amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500

Explanation:

Provided we have the following details,

Total investment = $34,000

Let amount invested @ 5% = x

Then, amount invested at 4% = $34,000 - x

Thus, (x \times 0.05) + (($34,000 - x) \times 0.04) = $1,545

0.05x + $1,360 - 0.04x = $1,545

0.01x = $1,545 - $1,360 = $185

x = $185/0.01 = $18,500

Thus, amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500

7 0
2 years ago
What is the first step to making sure that the product ends up in the correct spot on the shelf?​
Misha Larkins [42]

Answer:

Know where the product belongs

Explanation:

It won't end up in the right spot if you don't know where it goes

4 0
2 years ago
Other questions:
  • During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employ
    12·1 answer
  • The management of Firebolt Industries Inc. manufactures gasolineand diesel engines through two production departments, Fabricati
    11·1 answer
  • Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was
    8·1 answer
  • Describe how price affects decisions that consumers make
    15·1 answer
  • Camino’s cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer fr
    10·1 answer
  • ​_________ includes looking at​ relationships, attempting to attribute causes and​ effects, and basing our conclusions on scient
    11·1 answer
  • Kaelea, Inc., has no debt outstanding and a total market value of $81,000. Earnings before interest and taxes, EBIT, are project
    8·1 answer
  • In a monopolistic competitive industry, a. there are significant barriers to exit. b. there are few sellers. c. there are signif
    6·1 answer
  • Stephanie has been segmenting the market to help her grow her catering business. She is now at final stage in the segmentation p
    8·1 answer
  • hard hat company is in the process of purchasing several large pieces of equipment from machine corporation. several financing a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!