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
Oliga [24]
3 years ago
6

Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the r

eserve requirement is 20 percent and that the banking system had no excess reserves at the beginning of the month. What is the maximum change that can be expected in the money supply as a consequence of these deposits and withdrawals
Business
1 answer:
vladimir1956 [14]3 years ago
8 0

Answer: Money Supply Decrease of $50 million.

Explanation:

$40 million was deposited while $50 million was withdrawn.

The net change in the banking system would therefore be,

= 40 - 50

= -$10 million

($10 million ) means that more money left than came in.

The money supply can be calculated as the net change multiplied by the money multiplier.

The Money Multiplier is denoted as 1/reserve requirement.

Change in Money Supply is,

= -10 million * 1/20%

= -$50 million

Going by the negative number it means that Money Supply reduces by $50 million.

You might be interested in
Three employees in the maintenance department are responsible for repairing the video games at Pinball Wizard, a video arcade. A
DanielleElmas [232]

Answer:

(D) Calling a patient to confirm an appointment.

Explanation:

Which among the following processes of a dentist's office is the most likely a back-office process?

A back office process is a process that supports the front office processes. In the service industry such as this - dental services - a back office process won't require the presence of the client.

THE ANSWER IS (D)

Calling a patient to confirm an appointment doesn't require facing the patient or having them around.

Filing a claim with the patient's dental insurance provider requires the presence of one or both of the client and his insurance officer.

Cleaning a patient's teeth requires his or her presence at the dental clinic.

Same with option C.

8 0
3 years ago
Which of the following can increase your credit card’s APR
poizon [28]

Paying off the full balance.

 As a guidelines, your Credit Card APR will be increased if you are responsible in paying all your credit and show that you are a good user.

3 0
3 years ago
It takes K’s Boutique an average of 53 days to sell its inventory and an average of 16.8 days to collect its accounts receivable
dezoksy [38]

Answer:

The accounts receivable turnover rate is 21.73

Explanation:

The formula for accounts receivable turnover is

365/Average days to collect.

This way we can find how many times a year does the company collect payments for its accounts receivable, so when we divide the total number of days in a year by the average number of days to collect we can calculate how many times we collect payment for accounts receivable.

In the question we are given the average days to collect which is 16.8

We have to put that into a formula

365/16.8=21.73

5 0
3 years ago
An economist makes an assumption that each additional year of education causes future wages to rise by 7 percent. In this​ model
ladessa [460]

Answer:

Wage year 4= $12222.19

Explanation:

Giving the following information:

Each additional year of education causes future wages to rise by 7 percent.

A person with 12 years of education makes ​$21 000 per​ year.

A person with 4 years of education=$?

We will use the present value formula to calculate the wage in year 0. Then with the final value formula calculate the year 4 wage.

PV= FV/[(1+r)^n]

FV=final value at t time

r= rate

n= period of time

PV= 21000/(1,07^12)= $9324. 2511

Final Value= PV*(1+r)^t

Final Value year 4= 9324.2511*(1,07^4)= $12222.19

8 0
3 years ago
1. A creditor's claim to the property of an individual or business is called
skad [1K]

Answer:

c. liabilities.

Explanation:

liabilities are the creditors claims to the assets of the business/property.

7 0
2 years ago
Other questions:
  • It costs Sheffield Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A for
    14·1 answer
  • It costs Rockport Shrimp Fisheries, Inc. $30 to catch, process, freeze, package and ship 5-pound packages of gulf shrimp. Assume
    13·1 answer
  • Which of the following exams helps you get into the US army?
    11·2 answers
  • Relational integrity constraints enforce business rules vital to an organization's success and often require more insight and kn
    9·1 answer
  • JPL Company has two segments - Retail and Commercial. The Retail segment has a contribution margin ratio of 40% and traceable fi
    14·1 answer
  • Ruth Company showed the following balances at the end of its first year.
    6·1 answer
  • Write two or three career goals for yourself. Remember to use the guidelines for writing goals. Also, state how you will review
    11·2 answers
  • If the owner contributes $19,400 and net income is $15,900, how much did the owner withdraw (owner, withdrawals)
    9·1 answer
  • All of the following are reasons why some countries are more efficient than others at using capital and labor, except:
    9·1 answer
  • under the income approach to gdp, the wages, salaries, and benefits paid by businesses and government fall under the category of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!