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]
3 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]3 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
Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 28000 Advertising expense 20600 Cash 150
Debora [2.8K]

Answer:

$42,800

Explanation:

The computation of the net income for the year is shown below:

= Service revenue - advertising expense - depreciation expense - insurance expense - rent expense - salaries & wages expense - supplies expense

= $133,000 - $20,600 - $11,900 - $3,100 - $17,300 - $31,400 - $5,900

= $42,800

We simply deduct all the expenses from the service revenue so that the net income for the year could come

8 0
3 years ago
The major advantage of using bloom's taxonomy in developing objectives is that the taxonomy: helps in the formulation of criteri
baherus [9]
The major advantage of using Bloom's taxonomy in developing objectives is that the taxonomy <span>encourages educators to address complex cognitive processes as well as factual knowledge. Bloom's taxonomy is a hierarchy starting with create, evaluate, analyze, apply, understand and ending with remember. </span>
8 0
3 years ago
Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,
Wittaler [7]

Answer: $0.29 per mile

Explanation:

Truck is to be driven for 100,000 miles.

It has a cost of $34,000 and a salvage value of $5,000.

Useful life is 8 years.

Depreciable cost per mile under units-of-activity method = (Cost price - Salvage value) / Miles to be driven

= (34,000 - 5,000) / 100,000

= $0.29 per mile

3 0
3 years ago
Why is it often difficult for a new supervisor or manager to be promoted from within? What specific challenges often accompany t
mina [271]

Answer:

It is difficult for new supervisors and managers to be promoted from within because adequate training are not provided. Most of the good habits that make up a good leader must be learned.

Explanation:

Challenges faced by new managers include:

1) Managing others while still actually working

It is important for managers to know how to differentiate between times they can focus their attention to employee concerns and times they decide not to attend to anyone and whether this is applicable to their team.

A calender will be needed for this type of situation.Schedule regular check-ins with employees, and block off times for you to focus on your own work. Unexpected and urgent situations will always arise, so you will have to add in some flexibility.

Resist the urge to make yourself available to every demand that comes your way.

2. Managing friends and former peers

When you attain the new rank of a manager, it is important to define the boundaries of your relationships with your subordinates as soon as possible.

Explain what you require from your staff and what they can expect from you. For your part, they will expect your trust, communication, and fairness, no matter how your relationship was defined before you were promoted as a manager.

3. Trying to make changes too quickly

First-time managers are always very excited to start making their marks on the organisation, but if you force too many changes at a fast rate, your staff may push back.

Take a collaborative approach on making changes to get the support of your staffs.

4. Giving direct feedback

A lot of new managers sometimes have a hard time delivering important feedback or having difficult conversations.

If you avoid telling an employee their faults and how they need to shape up, you might end up driving away others on your staff including your top performers by letting the problem spread.

It is also important to give positive feedback regularly.

8 0
3 years ago
The balance of the revenue account is transferred to the
miv72 [106K]
Credit side of a the balance of revenue account is transferred
6 0
3 years ago
Other questions:
  • Gerrard, a manager at zincod clothing, organizes a survey to study the quality of the company's products. he instructs the surve
    8·1 answer
  • You chose to work beyond the age of 67. Your benefit increases 8% for every year you wait past the age of 67 but there is no inc
    14·1 answer
  • Which of the following is the best area on a vehicle to place a jack
    9·2 answers
  • Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price
    8·1 answer
  • Tax preparers who obtain written conflict of interest waivers from clients are required to retain the document for at least:____
    6·1 answer
  • If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will
    13·2 answers
  • Which of the following accounts could be found in the PQ partnership's general ledger?I. Due from PII. P, DrawingIII. Loan Payab
    13·1 answer
  • Which one of the following statements is False? a. The depreciation tax shield is the cash tax savings the firm receives from it
    12·1 answer
  • Because stocks rely on dividends as the principal source of cash flow, ascertaining stock prices is an easier and more precise p
    15·1 answer
  • In order to convince an organization to adopt security policies, it is necessary for a manager to have some proficiency in _____
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!