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Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn.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$40 million was deposited while $50 million was withdrawn.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

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Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,
hoa [83]

Answer:

The annualized rate of return to the Swiss investor is -7.93%.

Explanation:

This is an instance of foreign currency bond.

Using the exchange rate of $1 = 1.420, purchase price of the bond is calculated as $9,708.74 x 1.420 = 13,786.4108 Swiss Francs

Using the exchange rate of $1 = 1.324, maturity value is $10,000 x 1.324 = 13,240 Swiss Francs

Holding period is 6 months.

So, annualized rate of return is: (Maturity amount - Purchase price)/Purchase price x 12 / No of months

Annualized rate of return is: (13,240 - 13,786.4108)/13,786.4108 x 12/6 = -0.079268028.

Annualized rate of return is -7.93% approximately.

3 0
3 years ago
Bubbles Inc. produces gummy bears. The company purchases raw materials, stores them in warehouse, and then runs them through two
rusak2 [61]

Answer:

D. $65,000

Explanation:

Data provided

Direct labor = $56,500

Manufacturing overhead = $8,500

The computation of Conversion costs is shown below:-

Conversion costs = Direct labor + Manufacturing overhead

= $56,500 + $8,500

= $65,000

Therefore for computing the conversion cost we simply add the direct labor with manufacturing overhead.

8 0
3 years ago
_____________ is a deliverable-oriented grouping of the work involved in a project that defines its total scope.
Alex_Xolod [135]

Answer:

A work breakdown structure

3 0
2 years ago
Timmons corporation purchases office supplies for $350 cash. how would this transaction be recorded?
andrezito [222]

Timmons Corporation purchases office supplies for $350 cash. Debit Supplies $350, credit Cash $350.

A legal entity is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now allow the formation of new companies through registration.

A corporation is a business entity owned by shareholders who elect a board of directors to oversee the activities of the organization. A company is responsible for its actions and finances, but its shareholders are not.

Learn more about Corporation here:brainly.com/question/13551671
#SPJ4

5 0
1 year ago
Entrepreneurs work well under pressure because:
Darya [45]

Answer:

Letter d is correct. <u>They have a lot of energy.</u>

Explanation:

Entrepreneurs need to be high-energy people because they are naturally leaders in an organization and motivate employees.

The attitude that an entrepreneur adopts will usually be copied and transmitted in the organizational culture, but the ideal is that entrepreneurs prove to be high performance and energetic people, prepared to deal with the challenges and uncertainty that may occur in the organizational process, people who follow the line. the set of organizational ethics and policies.

The business posture is essential to cope with the daily pressures of running work systems.

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