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Vaselesa [24]
3 years ago
11

Other things being equal, if households decide to increase the amount of currency they hold per dollar of bank deposits, the mon

ey multiplier will tend to do which of the following?
Decrease
Remain unchanged
Increase
Any of the above is possible depending on the starting value of the variables in the money multiplier
Business
1 answer:
Dmitry [639]3 years ago
7 0

Answer:

Option (A) is correct.

Explanation:

Money multiplier refers to the reciprocal of required reserve ratio.

The formula for determining money multiplier is as follows:

= 1 ÷ Reserve requirement ratio

If the households are desired to hold more currency in hand then as result the there will be leakage in the form of households holding cash with themselves.

Hence, this will lead to decrease the money multiplier because of higher reserve requirement ratio for the banks.

You might be interested in
The Fair Credit Reporting Act, or Title VI of the Consumer Credit Protection Act of 1968, requires that lenders do all of the fo
antiseptic1488 [7]

Answer:

Give consumers copies of their credit reports.

Explanation:

In Business, credit can be defined as money or a loan facility agreed upon by a lender and a borrower, who is obligated to repay the lender at a specified date mostly with interest depending on the terms and conditions.

The Fair Credit Reporting Act, or Title VI of the Consumer Credit Protection Act of 1968 is a federal law of the United States of America that was enacted by the 91st US Congress and signed into law by President Richard Nixon on the 26th of October, 1970.

The main purpose of this federal law is to protect consumer reports and information by promoting accuracy, fairness, and privacy collected by consumer reporting agencies.

However, the Fair Credit Reporting Act, or Title VI of the Consumer Credit Protection Act of 1968, do not require that lenders give consumers copies of their credit reports.

7 0
3 years ago
In 1896, the first Green Jacket Golf Championship was held. The winner’s prize money was $160. In 2015, the winner’s check was $
Talja [164]

Answer:

r = 0.080528395 = 8.05%

Winner's Prize at 2044:  $ 15,215,114.02

Explanation:

Principal \: (1+ r)^{time} = Amount

Principal 160

Amount 1,610,000

time: 2015 - 1896 = 119

160 \: (1+ r)^{119} = 1,610,000\\ r = \sqrt[119]{1,610,000 / 160} -1

r = 0.080528395

If the same rate for the winner's prize is being keep by 2044 the winner will get:

Principal \: (1+ r)^{time} = Amount

Principal 1,610,000.00

time 29.00 (2044 - 2015)

rate 0.08053

1610000 \: (1+ 0.0805283946683808)^{29} = Amount

Amount 15,215,114.02

3 0
3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
he income statement columns in the end-of-period spreadsheet show that debits are equal to $26,754 and credits are $68,142. what
neonofarm [45]

The information that the statement columns in the end-of-period spreadsheet mean to the accountant is the accounts have not been updated and a net income of $41,388. The correct option is b and c.

<h3>Who is an accountant?</h3>

An accountant is a person who manages and calculates the accounts or finance of a company, a firm, or a person. He calculates the capital of the person, manage taxes and give advice about the finance of the person.

Given that, debits are $26,754 and credits are $68,142. If we subtract the debit from the credit. We see a net income of $41,388.

Thus, the correct option is b. the accounts have not been updated. c, net income of $41,388.

To learn more about accountants, refer to the link:

brainly.com/question/13341312

#SPJ4

4 0
2 years ago
Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common sto
nikklg [1K]

Answer:

The appropriate solution is "$130,000".

Explanation:

The given values are:

No. of common shares outstanding

= 50,000

Dividend per share

= $1.80

No. of preferred shares outstanding

= 8,000

Dividend per share

= $5

Now,

The total dividend on common shares will be:

=  No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share

On substituting the values, we get

=  50,000\times  1.80

=  90,000 ($)

The total dividend on preferred stock will be:

=  No. \  of \ preferred \ shares \ outstanding\times Divided \ per \ share

On substituting the values, we get

=  8,000\times 5

=  40,000 ($)

Hence,

The total dividend paid by company will be:

=  Total \ dividend \ on \ common \ shares +Total \ dividend  \ on \  preferred \ stock

=  90,000+40,000

=  130,000 ($)

Thus the above is the correct answer.

4 0
3 years ago
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