All categories

3 years ago

Suppose the reserve requirement is 10%.

Business

1 answer:

mestny [16]3 years ago

3 0

Answer:

B. more reserves, thus increasing the money multiplier and increasing the money supply.

In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.

If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.

A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.

The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).

Explanation:

You might be interested in

Sage Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the

valina [46]

Question:

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31. Riverbed Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes.

Answer:

The total avoidable interest is $743,040.00

Explanation:

Here we have

Date Expenditure Period Portion

Mar-01 $5,400,000.00 10/12 $4,500,000.00

Jun-01 $3,600,000 7/12 $2,100,000

Dec-31 $9,000,000 0/12 $0

Total $6,600,000.00

The weighted average expenditure is $6,600,000.00

The weighted average rate using the notes payable loan is found by the following calculation

Type of loan Amount Interest rate Interest incurred

Loan $6,000,000 10% $600,000.0

Loan $10,500,000 11% $1,155,000.00

Total $16,500,000 $1,755,000.0

Weighted average rate = Total interest incurred / Total loans

Weighted average = 1755000/16500000 = 0.10636 = 10.64%

The general interest is found by subtracting the specific loan from the weighted average expenditure

General = Weighted average expenditure - Specific loan

General = $6,600,000.00 - $3,000,000 = $3,600,000.00

The avoidable interest is found by summing the specific interest to the weighted average interest as follows

Type of loan Amount Interest rate Interest incurred

Specific $3,000,000 12% $360,000.00

General $3,600,000 10.64% $383,040.0000

Total $743,040.00

The total avoidable interest = $743,040.00

5 0

3 years ago

A ____ is a gift to a retailer who purchases a specified quantity of merchandise

Setler79 [48]

Dealer loader is correct

4 0

4 years ago

Macmillan Toys Inc. is located in the nation of Ruffino near the nation of East Fenwick. Macmillan Toys is considering expanding

Lilit [14]

Answer: Political Distance

Explanation:

Political distance refers to a difference in opinion and policies as well as relations that countries have amongst themselves. In this scenario, this is the most likely bone of contention that would prevent Macmillan Toys from expanding into Rusalka.

This is because land disputes fall under political distance and can get very serious. So serious in fact that nations have gone to war over such disputes with the latest being Azerbaijan and Armenia. Macmillan Toys may therefore find it difficult to expand into the country due to this land dispute.

4 0

3 years ago

(Will mark BRAINLIEST) Can someone explain what exactly this question is asking?:

Mekhanik [1.2K]

The question asks to describes any two methods of searching a job when you actually need for a new job. Also to search jobs you can prefer,

Use Online Job Portal,

Use Employee Referral Programs, etc...

<u>Explanation:</u>

Before you start chasing for a new position you've set aside some effort to clean your resume, take a stab at scanning for openings online by visiting the "Professions" page on different organizations' website pages, perusing different quest for new employment destinations, or experiencing the activity board facilitated by your college. Online occupation sites are regularly called work banks.

They are a decent method to secure current position declarations that meet your criteria. Secure position advertisements on the web, in work banks, on organization sites, at work fairs, and the sky is the limit from there. At that point follow the tips to react to those openings. Address bosses to extend your system and find out about conceivable employment opportunities.

7 0

3 years ago

The use of simulation to create an aggregate plan:

12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

Simulation is the technique used to create an artificial environment that is similar to the real-life situation to study various problems and how to tackle them. However, it is not the full proof plan which means it is based on certain probability and chances that a certain situation might arise. Many times situations are not as planned and here we cannot solely depend on the solution that we have learned during the simulation process. Therefore, the simulation will provide us with a plan that may or may not be the best plan.

6 0

3 years ago