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Vesna [10]
3 years ago
9

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individ

ual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result? a. It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio. b. It would decrease by $500,000 multiplied by the reciprocal of the required reserve ratio. c. There would be no change to the money supply. d. It would increase by $500,000. e. It would decrease by $500,000.
Business
1 answer:
Neporo4naja [7]3 years ago
5 0

Answer:

It would decrease by $500,000 multiplied by the reciprocal of the required reserve ratio

Explanation:

The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). ... To increase the money supply, the Fed will purchase bonds from banks to inject money into the banking system.

Conversely, the money supply decreases when the Fed sells a security

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Answer:

Correct option are (1) and (3).

Tax revenues are often diverted to those in power instead of going into legitimate productive investment, and the same is sometimes true of foreign aid money from abroad.

Knowing that payments of graft must be made prevents many people from undertaking actions that might lead to growth.

Explanation:

In a corrupt economy, government incomes from charge and outside guide frequently are occupied to politically influential individuals as opposed to being contributed for gainful purposes. Since individuals realize that defilement cash needs to paid to concerned authorities, they don't attempt such profitable venture either. Both these variables identified with defilement limits speculation and development.

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3 years ago
Which type of inflation occurs when prices are high, then drop due to lower demand, and then are restored to a previous high lev
natta225 [31]

Answer:

Reflation

Explanation:

8 0
3 years ago
If the demand for product x is inelastic, a 4 percent decrease in the price of x will.
NeTakaya

A 4 percent decrease in the price will lead to an increase in the quantity demanded by less than 4 percent.

<h3>What is demand?</h3>

Demand simply means the amount of goods and services that a buyer wants to buy at a particular price and time.

When the demand for product x is inelastic, a 4 percent decrease in the price of x will lead to an increase in the quantity demanded by less than 4 percent.

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3 0
2 years ago
Documents in a voucher system
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Answer: 1 E, 2 C, 3 A, 4 F, 5 D, 6 B

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Receiving report - A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of the goods.

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3 years ago
Turnover Pulse hypothesis states that ____ eaters faced high rates of extinction during the ice ages
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The turnover Pulse hypothesis states that generalist eaters confronted excessive charges of extinction during the ice a long time.

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Phylogenetic turnover quantifies the evolutionary distance among species assemblages and is principal to expertise the main drivers shaping biodiversity. its miles affected each by means of the geographic and environmental distance between websites.

The theory is that the savannah became increasing because of increasingly more arid situations, which then drove the hominin version.

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