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
sukhopar [10]
2 years ago
9

If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of b

anks having more money to lend?
Business
2 answers:
andrey2020 [161]2 years ago
8 0

Answer

If the domino effect occurs due to changes in money supply,bank will immediate have more money to lend causing;

• Interest rates to reduce

• Investments rates to decrease

Explanation

The central banks apply different techniques to increase or reduce the funds in the banking system. This is called monetary policy. The FED influences the supply of money by modifying reserve requirements. They lower the reserve requirements to be able to loan more money which in turn increases overall money supply in the economy of the country. Through rising the bank’s reserves requirement, the Fed is able to lower the size of money supplying in the economy.


Slav-nsk [51]2 years ago
4 0

<u>If the domino effect occurs as a result of changes in the money supply, investment rate and interest rate will decrease as an immediate result of banks having more money to lend. </u>

Further Explanation:

According to the law of supply, an increase in the supply will decrease the price of the product. There is an inverse relationship between the price and supply of the product.

When the banks have more money to lend, their money supply increases. Therefore, they has to decrease cost of lending will decrease so that they can lend more funds to the public. The public would prefer to take a loan at a relative lower price. Therefore, decrease in the interest rate will increase the demand of the product. As the supply of the money has increased in the market, it will affect the investments. The investment rate will decrease because there are already a lot of funds in the market because of the increase in the supply.

<u>Therefore, an increase in the money supply in the market will decrease the interest rate and investment rate. </u>

Learn more:

1. Learn more about the law of demand and supply

<u>brainly.com/question/11045011 </u>

2. Learn more about the effect on demand

<u>brainly.com/question/6123400 </u>

3. Learn more about the demand and supply

<u>brainly.com/question/2195487 </u>

Answer details:

Grade: Senior School

Subject: Economics  

Chapter: Law of supply

Keywords:domino effect, result, changes, money supply, most, likely, happen, immediate, result, banks, money, lend.

You might be interested in
Which statement regarding strategies is true?
Iteru [2.4K]
<span>"C. Strategies facilitate objectives" This is true because there's a series of objectives that must be completed within any strategy, and the other options can be true however not for every strategy.</span>
5 0
3 years ago
Your industrial supply company wants to create a data warehouse where management can obtain a single corporate-wide view of crit
antoniya [11.8K]

Answer:

Industrial supply company scenario:

  • The company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify best-selling products in specific geographic areas, key customers, and sales trends.
  • The sales and product information are stored in both a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe.
  • The desire is to create a single standard format that consolidates these data from both systems.

Business problems:

  • A business problem that can arise from not having these data in a single standard format is that employees will see the data as inconsistent.
  • It is difficult to make business decisions if the data is unreliable, inaccurate, or redundant.
  • The product descriptions are formatted differently so managers and employees might get confused when it is entered into the system.
  • Also, the system identifies the sales by territory in the United States so it would be impossible to identify the sales or even around the world.
  • The corporate sales system also lacks a way to identify the identification of the customer.
  • Both sales system should be consistent with the information in order to prevent redundancies or inaccuracies.  

How easy it would be to create a database with a single standard format:

  • Creating a database with a single standard format would ideally be easy.
  • Data quality audits and data cleansing should be performed when constructing the new database.
  • Data quality audits and data cleansing would correct any redundancies and inaccuracies in the current systems.
  • By using data-cleansing software, the company can combine and integrate the data from all the systems into a single standard format that is uniform throughout the whole company.

Problems that should be addressed:

  • A problem that should be addressed is the product description and sales territory tags.
  • These tags have different formats which could lead to inconsistencies in the data.
  • The names would have to be changed so that they are the same format and are only entered once in the new single standard format database.
  • Another problem that would have to be addressed is keeping both the division and customer id tags in the new database.
  • This would provide more information for each entry and would limit any confusion among the employees.

Database specialists:

  • Database specialists will help solve the problems by performing the data quality audits and data cleansing.
  • They will also help in establishing an information policy and developing the new database.
  • They are also responsible for the specific policies and procedures through which data can be managed as an organizational resource.
  • This involves overseeing logical database design and data dictionary development, planning for data, and monitoring how information systems specialists and end-user groups use data.

General business managers:

  • General business managers would have the final say when managing data resources.
  • They would be responsible for defining and organizing the structure and content of the database and maintaining the database.

Who should have the authority?

  • The general business managers should have the authority because they are responsible for the data.
  • This would mean that even though they allow database specialists to establish an information policy and develop the new database, the managers are the ones who have to approve the final product in order for it to be implemented company-wide.
  • The managers are the ones whose reputations are on the line when a company succeeds or fails, so they should have the final authority.

6 0
3 years ago
If there are two lawyers with similar experience and fees, you should make a decision by _____.
mash [69]

Answer:

If there are two lawyers with similar experience and fees, you should make a decision by asking other lawyers for recommendations.

4 0
3 years ago
Read 2 more answers
Majestic Homes' stock traditionally provides an 7% rate of return. The company just paid a $2 a year dividend which is expected
liberstina [14]

Answer:

$52

Explanation:

Data provided as per the question

Recent dividend = $2

Market rate of return = 8%

Growth Rate = 4%

(Its expected to increase so it will be (1 + 4%) = 1.4%

The computation of price is shown below:-

Price = Recent dividend × (1 + Growth rate ) ÷ (Cost of equity - Growth rate)

= ($2 × 1.04) ÷ (0.08 - 0.04)

= $2.08 ÷ 0.04

= $52

6 0
3 years ago
The graph illustrates a change in the market for bicycles. Which statement could explain the graph?
olchik [2.2K]

Based on the graph that shows the change in the market for bicycles, the statement that explains the graph is The demand for bicycles increased due to news about the health benefits of exercise. The market price & quantity increased.

<h3>Which statement explains the supply and demand graph?</h3>

The question is not complete as the graph is not given. However, an answer can be formulated based on the laws of demand and supply.

The most likely option to be true is that the demand for bicycles increased due to news about its health benefits and then this led to the market price and quantity increasing.

This is because the increased demand for the bicycles would have drove the prices up. This would then have inspired suppliers to produce more bicycles thereby increasing bicycle quantity as well.

Find out more on demand increasing at brainly.com/question/4371942

#SPJ1

7 0
11 months ago
Other questions:
  • The people pane shows social media information available for any people who were included in the header of a message in the ____
    9·1 answer
  • A baseball fan with a Mike Trout baseball card wants to trade it for a Giancarlo Stanton baseball​ card, but everyone the fan kn
    5·1 answer
  • Horizontal channel conflict can arise for a variety of reasons. An example would be a toy manufacturer selling its toys through
    15·2 answers
  • Shares of common stock of the Samson Co. offer an expected total return of 13.00 percent. The dividend is increasing at a consta
    11·1 answer
  • José is the manager of Sandy's Candy, a popular confectioner in Illinois. He is in charge of outlining future organizational goa
    9·1 answer
  • Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment wa
    6·1 answer
  • The impact of corruption and fraud on an individual​
    8·1 answer
  • Every nation faces the need to make three core choices/decisions owing to the fact that resources are
    15·1 answer
  • g The Investment Trust Fund for Watson County had the following transactions and events during the calendar year 2022: 1. The ci
    9·1 answer
  • When a government establishes a marketable permit program to address environmental pollution, it is actually issuing a form of c
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!