All categories

3 years ago

Why are there more elements to the money supply than just the money that is actively circulating?

1 answer:

6 0

The money that is actively circulating is specifically identified as CASH. It is a part of the money supply.

Basic money supply are all the cash held by the public either on hand or in their transaction accounts like savings or checking accounts. These are all money because they have the ability to purchase goods and services aside from cash exchanges.

You might be interested in

The Sherman Antitrust Act A. was concerned with self-interest dominated Nash equilibriums in prisoners' dilemma games. B. restri

dolphi86 [110]

Answer:

B. restricted the ability of competitors to engage in cooperative agreements

Explanation:

The Sherman Antitrust Act of 1890 is a US legislation that regulates the level of competition that exists among businesses. It was passed by the Congress when Benjamin Harrison was president. This act is aimed at protecting trade and commerce from illegal restraints and monopolies. It was enacted by the 51st Congress of the United States. This act was introduced by John Sherman in the senate house.

8 0

3 years ago

Read 2 more answers

Mendel studied pea plants for particular traits. When observing the results of his experiments, he created two laws of inheritan

Fudgin [204]

Scientific laws are created when a theory has stood the test of time and cannot be proven wrong. A scientific law is a statement based on repeated experimental observations that describes some aspects of the universe. Hope this answers the question.

6 0

2 years ago

Read 2 more answers

The use of a variety of marketing channels to ensure maximum distribution is best called _______.

Delicious77 [7]

I believe the answer is B

7 0

3 years ago

A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half o

Marysya12 [62]

Answer:

n= 6.11 years

Explanation:

Giving the following information:

Present value= $40,000

Future value= $20,000

Decrease rate= 0.12

<u>To calculate the number of years for the car to reach a value of $20,000; we need to use the following formula:</u>

n= ln(FV/PV) / ln(1+i)

n= ln(20,000/40,000) / ln(1.12)

n= 6.11 years

8 0

2 years ago

A firm wishes to maintain an internal growth rate of 8 percent and a dividend payout ratio of 36 percent. The current profit mar

Anon25 [30]

Answer:

2.16 times

Explanation:

Given that,

Internal growth rate = 8 percent

Dividend payout ratio = 36 percent

Current profit margin = 5.8 percent

Therefore,

Internal Growth Rate = (1 - Dividend Payout Ratio) × ROA

8% = (1 - 36%) × ROA

0.08 = 0.64 × ROA

ROA = 0.08 ÷ 0.64

= 0.125

ROA = Profit Margin × Total Asset Turnover

0.125 = 0.058 × Total Asset Turnover

Total Asset Turnover = 0.125 ÷ 0.058

= 2.16 times

6 0

3 years ago