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Lera25 [3.4K]
4 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]4 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.

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When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs: Multi
Naddika [18.5K]

Answer:

Option D- The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.

Explanation:

The reason is that the company has batch level costs which are fixed indirect costs that are to be assigned to the product and are fixed amounts say $100. Also assume that there are two type of units, Unit A and B. Suppose that the batch cost any number of units of A produced will remain the same and similarly for product B. This means if the units produced of A are at 20 unit per batch and product B produced are 10 units per batch then Activity Based Costing says that the unit cost of batch cost absorbed in Product A would be $5 ($100 / 20) and that for product B would be $10 ($100 / 10). So this example better explains cost behavior of batch cost which is fixed for different levels of production.

This means the fixed cost per unit which decreases with increase in production will keep decreasing if the number of units produced starts increasing. In other words, the similar class of units if are produced in higher quantity then the cost per unit will be decreased due to decrease in fixed cost per unit and vice versa.

3 0
3 years ago
Flatter organizations today often reassign an employee to a new job at the same level, which is known as a(n)?
eimsori [14]

It is known as lateral transfer.

A transfer is a horizontal or lateral movement of a person from one job, section, department, shift, plant, or position to another in the same or another location with the same wage, status, and responsibilities.

A lateral move is a job movement in which a person transfers from one position to the another with minimal change in compensation, title, or level. However, even if you do not receive a promotion, a lateral transfer does not guarantee that one will not gain the new experiences or develop new abilities.

Therefore, the answer is lateral transfer.

To know more about lateral transfer click here:

brainly.com/question/25469999

#SPJ4

5 0
2 years ago
Why is representative money more useful than commodity money?
love history [14]

<span>Representative money is portable, durable, divisible, and acceptable.</span>

8 0
3 years ago
Read 2 more answers
Information concerning the unexpected resignation of one or more of the registrant's directors would be disclosed on which of th
labwork [276]

Answer: Form 8-K

Explanation:

An 8-K is a report the corporate changes that happens at an organization. The information given in form 8-K is important to the shareholders of the organization and also to the Securities and Exchange Commission.

Events such as bankruptcy, acquisitions, resignation of directors can all be seen in the report.

7 0
3 years ago
Which type of budget indicates more expenses than income?
Fittoniya [83]

Answer:

a deficit budget

Explanation:

A budget is a plan detailing how an individual, a firm, or a government will spend its anticipated revenue. In short, a budget is a plan of expenditure. Budgets are usually prepared at the beginning of a period to guide the use of available resources.

An ideal situation is when the planned expenditure equal to the expected income. Such a plan is called a balanced budget. However, in some circumstances, the planned expenditure exceeds the projected income. That budget is a deficit budget.

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