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Oliga [24]
2 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Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn.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]2 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$40 million was deposited while $50 million was withdrawn.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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2 years ago
On January 1, Noonan Company purchases equipment for $100,000. The equipment is expected to have a useful life of 5 years and wi
PtichkaEL [24]

Answer:

$20,000

Explanation:

Since the cost is allocated equally, the depreciation expense on the purchased equipment will be calculated as:

                                                                 =  <u>Cost of equipment- Scrap value</u>

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                                                                 =  <u>$100,000 - $0</u>

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Based on the above, the depreciation expense for the year that must be recognized by Noonan Company is $20,000.

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3 years ago
Trend analysis is one method of examining changes in a firm's performance over time, which the analysis of only one year's ratio
Anvisha [2.4K]

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Explanation:

The trend analysis can also be used to do a comparative analysis to assess the financial company's performance over a time period. Compared to quantitative statistics, the trend analysis is more efficient, making top management more successful and smart decision-making.

Trends in working capital management and its impact on firms' performance.

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What are the characteristics of products that are most suitable to be carried in finished-goods inventory retail stores?
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Explanation:

i want to delete this post

4 0
3 years ago
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alton Corporation is currently selling 104 units of its product. The company is deciding the price that it should charge for a b
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Answer:

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