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Elena L [17]
3 years ago
5

Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reser

ves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of _________ in demand deposits.
Business
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

$7,500,000

Explanation:

Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of $7,500,000 in demand deposits

From the stated assumptions in the question,we will use the money multiplier to calculate the eventual effect of the $1,500,000 injection into the money supply.

Money multiplier can be calculated using this formula 1/r  (r is the required reserve ratio)

Therefore, the resulting change in demand deposits is as follows:

Change in Demand Deposits = Change in Fresh Reserves ×1/r

= $1,500,000×1/0.20

= $7,500,000

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Technological improvements have made it possible to do a restaurant’s food cost percentage in about _____________ of the time it
EleoNora [17]

Answer: One-third

Explanation:

The impact of technology in our everyday life cannot be understated. Technology has made life easier by simplifying our work lives and personal lives. In the restaurant industry, technological terms such as artificial intelligence, mobile apps, smart devices etc are now common in the industry.

Technology helps in making work easier. This can be noticeable in knowing the food cost percentage of a restaurant. Through technology, the food cost percentage of a restaurant can now be known in one third of the time used before technology came into place.

3 0
3 years ago
Read 2 more answers
The cost of overestimating demand is usually harder to determine than the cost of underestimating demand. Group of answer choice
forsale [732]

Answer:

The statement is: False.

Explanation:

In supply chain management, incremental analysis is in charge of determining the cost of ordering one more additional unit of a product over the cost of no requesting that additional unit. The cost of overstimulating demand is the loss of ordering one additional unit and discovering that it cannot be sold. The cost of underestimating demand is the opportunity loss for nor requesting one additional and discovering it could have been sold.

<em>The cost of underestimating demand is more difficult to determine than the cost of overestimating demand because underestimating demand because it involves customer's desires</em> on purchasing a product when not having the resources to do so.

8 0
3 years ago
The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at
nalin [4]

Answer:

4%

Explanation:

The Gordon constant growth dividend model =

Value = dividend / cost of capital - growth rate

Subsisting with the values given in the question gives :

25 = 2.5/0.14 - g

To solve for g,

1. multiply both sides by 0.14 - g

25(0.14 -g) = 2.5

2. divide both sides by 25

0.14 - g = 0.10

g = 0.04 = 4%

6 0
3 years ago
All of the following options are good tips for borrowing money EXCEPT...
Jlenok [28]
I would say B. Quick cash loans. Interest rates are very high & not a good idea in borrowing money. They are designed for people who have poor credit ratings & have no other means to borrow money.
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3 years ago
One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by
Anton [14]

Answer:

Using predetermined totals to control posting routines.

Explanation:

A validation methods to avoid errors is the batch total control, that verificate the transcription errors and transportation errors.

Validations aims to make sure that data is sensible, reasonable, complete and  within acceptable boundaries.

The batch total checks that something is not missing by adding together a number field in different records and checking the total. For example, if an invoice has three items costing 1,2 and 3, the control will look for a batch total of 6.

8 0
3 years ago
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