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
qwelly [4]
2 years ago
9

1. Suppose banks keep no excess reserves and no individuals or firms decide to hold more cash during the deposit expansion proce

ss. If someone suddenly discovers $50 million in buried treasure, explain what would happen to the money supply if the required reserve ratio is 10 percent. How would your answer change in the required reserve ratio was 20 percent?
Business
1 answer:
anygoal [31]2 years ago
6 0

Answer:

Increase by $500 m

Increase by $250 m  instead of $500 m

Explanation:

Since all the deposits over and above the reserve requirements are loaned out by the banks,

We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.

Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times

So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.

For a 20% reserve ratio, Credit multiplier changes a,

Credit Multiplier = 1 / 0.2 = 5 times

This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.

Hope that helps.

You might be interested in
When using straight-line depreciation to compute depreciation for a partial​ year:
PtichkaEL [24]

Answer:

B.

compute depreciation for a full year under straight minusline depreciation and multiply it by the fraction of the year that you held the asset.

Explanation:

Under straight-line depreciation, the asset value is spread equally throughout its useful life.

To get the depreciation of a partial year, you need to calculate the depreciation a full year first.

Divide the asset value by the number of its useful years to get depreciation value for one year.  To compute partial depreciation, you need to establish the fraction of the year to be depreciated. Divide the number of months by twelve to get the fraction.

To get actual depreciation, multiply this fraction by a full year depreciation.

8 0
3 years ago
Foreign companies that are listed on the New York Stock Exchange (NYSE) and following their domestic GAAP must report their inco
Arlecino [84]
The generally accepted accounting principles of the United States
7 0
2 years ago
Dwight, the general manager of a hotel, knows that one of his housekeeping employees has a serious substance-abuse issue. Dwight
Oksana_A [137]

Answer: relaxed change

                                                                               

Explanation: In simple words, it refers to a situation when a manager knows that he or she is stuck in an unavoidable issue but rather than facing it he or she chooses the second best alternative that involves low risk.

  In the given case, Dwight knew that substance abuse with an employee is a serious issue but rather than facing it on his won he decided to put it into his subordinate.

Thus, the given case is an example of relaxed change.

3 0
2 years ago
At Rolce Technologies, the core design team of 10 employees has daily "stand-up" meetings. All the core design team members gath
4vir4ik [10]

Answer: rituals

Explanation: Rites and rituals, which also include habits and ceremonies, together shape the culture of an organization. A ritual is a series of activities that involve actions, words and things, performed in a locked away position and executed in a fixed sequence.

For example, an employee can eat lunch in the shared lunchroom rather than their desk as a form of habit, or spend five minutes after each meeting debriefing the team about what they learned.

Hence from the above we can conclude that the correct option is D.

8 0
3 years ago
plaintiff was injured when the vehicle which he was operating was rear-ended by an 18-wheeler operated by driver and owned by ow
Anton [14]
  • A declinatory exception of unsuitable venue must be filed by the defendants.
  • The exception needs to be brought up before or in the answer, before or concurrently with any pleading that requests relief other than ministerial ones, like the appointment or removal of counsel of record or an extension of time to plead, and in any case, before the confirmation of a default judgment.
  • Any additional declinatory or dilatory exceptions must be argued concurrently if they are to be considered.
<h3>What is mean by plaintiff ?</h3>

A plaintiff is the person or entity who files a lawsuit with the court. The plaintiff is looking for a legal remedy by doing this. If the search is successful, the judge will rule in the plaintiff's favor and issue the necessary orders.

Learn more about plaintiff here:

brainly.com/question/7315287

#SPJ4

7 0
1 year ago
Other questions:
  • Brooke Company grants James Decorating additional time to pay its past-due account. James makes a written promise to pay Brooke
    6·2 answers
  • In b2c sales the salesperson does not spend a great deal of their time:
    12·1 answer
  • Corinne believed in solving issues between managers and employees by talking and finding solutions together, so when a group of
    15·1 answer
  • List one tip someone should follow before investing their money and explain.
    15·1 answer
  • Is CNC a type of machine?
    5·1 answer
  • A formal written accusation submitted to a court by a prosecutor alleging that a specific person has committed a specified offen
    12·1 answer
  • Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs
    13·1 answer
  • Using your knowledge of SMART goals, select the best goal.
    8·1 answer
  • Write the importance of a business operating plan​
    6·2 answers
  • Tarazzz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Di
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!