1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lera25 [3.4K]
3 years ago
7

Suppose the reserve requirement is 15​%. What is the effect on total checkable deposits in the economy if bank reserves increase

by ​$50 ​billion?
Business
1 answer:
Alekssandra [29.7K]3 years ago
6 0

Answer:

Total Check-able deposits to increase by $333.5 billion

Explanation:

If the bank reserves increase by $50 billion, the total check-able deposits will increase by 50 * the credit multiplier.

Credit multiplier is the measure by which an increase in total money supply can be measured relative to an increase in banks' excess reserves.

Credit Multiplier = 1 / reserve ratio

Credit Multiplier = 1 / 0.15 = 6.67

So an increase in excess reserves of 50 billion will have a net effect of 50 * 6.67 = $333.5 billion. This will be the net increase in total check-able deposits or the money supply.

Hope that helps.

You might be interested in
On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may
anygoal [31]

Answer:

b. excludable and rival in consumption

Explanation:

For categorizing the goods as private or public, the two terms we need to understand i.e.  rivalry and excludability

The rivalry refers only one person could consume it no other has the right to consume the same thing

While on the other hand, the excludable arise when you stop someone from using a particular thing

So here in the given case, the option b is most appropriate as it is fit to the scenario

8 0
3 years ago
In designing health promotion efforts, it is important to set clear goals and measure how successful you are compared to the mon
Advocard [28]

Answer:

c. Accountability

Explanation:

This is known as accountability. In other words its making sure that you are holding yourself accountable for doing what you need to do and making sure that your efforts are not for nothing. This is done by staying on top of your choices and adjusting your decisions so that the money and time you invest are paying off with and pushing you towards the goals that you have set forth.

7 0
2 years ago
Elise is beginning to learn how to write. she can hold a pencil in one hand and steady the paper with her other hand. this new a
Mars2501 [29]
The answer to the question above is "the growth of her corpus callosum" which is the reason of Elise's ability to learn which is shown in the question above. The corpus callosum is the part of the brain which related to the intellectual ability of a human. Elise's ability to learn is related to her intellectual ability, thus, the growth of her corpus callosum is the best answer.
7 0
3 years ago
Anna has worked for the Nutty Boys Nut Butter Company for several years now and was recently recognized as one of the company's
sammy [17]
A


Social media


Social media is so fun you can talk to who ever one to talk to
7 0
3 years ago
____ is the consumer right that is protected by a federal fraud law.
Fed [463]

Answer:

The Federal Trade Commission Act

Explanation:

6 0
1 year ago
Other questions:
  • All else equal, when investors consider a firm's return on equity (ROE) they consider less risky a firm that earns proportionate
    10·1 answer
  • When short-term investments appear in the balance sheet at their current market values, it is an exception to the ______ princip
    5·2 answers
  • If all monopolistically competitive firms had identical cost curves:_________.a. the industry would remain monopolistically comp
    9·1 answer
  • Anette used 136.12 inches of lace equally on 12 dresses. How much lace did she use on each dress?
    11·1 answer
  • Why is it more likely that employee referral programs are effective and successful?
    9·1 answer
  • You purchase a $500 bond that pays 2% coupon yield ($10), and the bond is currently trading for $400. What is the current yield?
    5·1 answer
  • Is United States currency officially "backed" today?
    6·1 answer
  • 1- your FICO credit score based on which of these (there can be more than one right than one right answer )
    15·1 answer
  • Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates th
    15·1 answer
  • On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!