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rosijanka [135]
3 years ago
5

Suppose that the required reserve ratio is 20 percent for commercial banks and there are currently no excess reserves. Then, one

bank in the bank system receives a cash deposit of $250,000 for a checking account. What is the maximum amount of money that will be created in the banking system as a result of that that deposit?
Business
1 answer:
zysi [14]3 years ago
4 0

Answer:

The amount of money created will be $1,250,000

Explanation:

In order to find the maximum amount of money that will be created in the banking system as a result of a deposit, we need to find the money multiplier.

Multiplier = 1/reserve ration = 1/0.2 = 5

The amount of money created = Multiplier *Initial deposit

Amount of money created = 5* 250,000

= 1,250,000

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kow [346]

Portfolio analysis is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity.

<h3><u>Explanation:</u></h3>

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4 0
3 years ago
Kahle Company has two support departments: Purchasing and Payroll. The Purchasing Department expense is $500,000 to process 50,0
allsm [11]

Answer: $15600

Explanation:

To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:

First we need to calculate the allocation rate which will be:

= $300,000/25,000

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Then, the departmental cost will be:

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= 1,300 × $12

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Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.

3 0
2 years ago
What are the characteristics of a mixed economy?
Oxana [17]
A characteristics of a mixed economy is a mix of both private and government control.
7 0
2 years ago
The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product
denis-greek [22]

Answer:

The correct answer is (A)

Explanation:

The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.

5 0
3 years ago
What is the difference between earned income, passive income, and investment income?
Rudiy27

Explanation:

Earned income consists of income you earn while you are working a full-time job or running a business.

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4 0
2 years ago
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