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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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klemol [59]

Answer:

Company, Customers, Competitors, Collaborators, and Climate.

Explanation:

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he following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.0 hours S
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Answer:

Direct labor rate variance= $2,430 favorable.

Explanation:

Giving the following information:

Standard labor rate $ 15.10 per hour

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To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

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3 years ago
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Stels [109]

Answer:

Cash account reconciliation

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3 years ago
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 20%, the q
aalyn [17]

Answer:

Penguin patties and kipples should be advertise together.

Explanation:

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3 years ago
Who, along with her daughter caroline and others, stitched the original stars and stripes that inspired the words, that were put
Damm [24]
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2 years ago
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