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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.

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When you retire 35 years from now, you want to have $1.25 million. You think you can earn an average of 13.5 percent on your inv
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Answer:

$19,144.61

Explanation:

The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated

The formula for calculating future value:

P = FV / (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$1.25 million /  (1.135)^35 = $14,861.23

Now we find the future value using this formula :

FV = P (1 + r)^n

$14,861.23 x (1.135)^2 = $19,144.61

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Answer:

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Date    Account Name           Debit       Credit

1-Dec   Supplies                   $2,000

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1-Dec    Cash                         $6,000

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1-Dec     Land                          $40,000

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15-Dec    Accounts Payable    $2,000

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Date        Account Name            Debit        Credit

31-Dec     Supplies expense       $1,900

                ($700 + $2,000 - $800)

                       Supplies                                 $1,900

31-Dec     Deferred Revenue        $1,000

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                         Service Revenue                 $1,000

31-Dec      Interest expense           $400

                 ($40,000*12%* 1/12)

                       Interest Payable                      $400

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