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4 years ago

What is the relationship between changes in the money supply and changes in the reserve requirement

Business

1 answer:

EastWind [94]4 years ago

3 0

Answer:

Reserve requirements have an indirect relationship with the money supply

Explanation:

Reserve requirements are a portion of customer deposits a bank is supposed to keep in its custody at all times. The federal reserve gives guidance on the proposition of reserve requirement that a bank should hold. Reserve requirement is usually a percentage of the deposits. Banks cannot loan out their reserves.

Reserve requirements have an inverse relationship with the money supply in the economy. If the reserve requirement is high, banks will have a lower proposition of customer deposits to loan out. When reserve requirement is low, banks will have a bigger proposition of deposits to loan out, thereby increasing the money supply in the economy.

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sergeinik [125]

Answer:

The correct answer is "indirect attack or bypass attack"

Explanation:

Bypass Attack or indirect attack is when the market challenger doesn´t attack directly a company leader, but increases its market share by attacking the vulnerable market.

Expanding into the untapped markets and innovating the actual product with technology.

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3 years ago

a systematic and independent examination of project procedures, documentation, spending, statutory compliance, and reporting is

7nadin3 [17]

Answer:

Audit

<h3>What is an audit defined as?</h3>

Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance with requirements.
An audit can apply to an entire organization or might be specific to a function, process, or production step.

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2 years ago

A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free

Thepotemich [5.8K]

Answer:

B) the uneven distribution of gains and losses from free trade.

Explanation:

One of the most important reasons why governments impose trade barriers is to protect domestic jobs (and domestic industries). We are part of a society (country), and society's most important component is people, not money. Generally the economic gains of free trade are larger than the economic losses, but the economic losses hurt the most.

Imagine if no trade barriers actually existed, how many millions of jobs would be lost in the US. Trade barriers are nothing new, the current president didn't invent them. He just incinerated them.

How does a leader tell the people that 10 or 20 million must lose their jobs and probably will not be able to find any similar jobs in the future just because the rest of society will benefit from cheaper products. The lives of 20 million households (50-80 million people) would be destroyed, while 280 million people would benefit.

The amount of harm done to the people that lose their jobs is much greater than any individual benefit.

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3 years ago

If the economy is in a recession, according to Keynesian economists, which fiscal policy is likely help this economic issue?

VashaNatasha [74]

Answer:

expansionary fiscal policy.

Explanation:

expansionary fiscal policy is most appropriate when an economy is in recession and producing below its potential GDP.

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2 years ago

Which type of life insurance policy combines term insurance and investment elements?

Ne4ueva [31]

To answer the question above as to which type of life insurance policy combines term insurance and investment elements is letter C, Universal Life. Universal Life or in other term Permanent life Insurance is a type of insurance to which is flexible low-cost protection and term life insurance as well as the saving elements like the whole life insurance.

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3 years ago

Read 2 more answers