Explanation:
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Answer:
$200 million
$30 million
Explanation:
When the requiredreserce ratio is 15 percent or 0.15 , then the money multiplier is (1 / required reserve ratio) or (1/0.15 = 0.67)
Now, change in money supply = money multiplier * open market purchase of government bonds.
Here , the Federal Reserve a $30 million open market purchase Of govemment bonds.
As a result of this;
Money Supply increases by (6.7 * $30 million) = $200 million.
This is the maximum amount the money supply could Increase.
Now, if the bank holds. $30 million as excess reserves, then money supply could increase by as much as $30 million. This is the smallest amount themoney supply could increase.
So, If the required reserve ratio is 15 percent the largest possible increase in the money supply that could result is $200 million- and the smallest possible increase is $30 million.
Option D. The size of the market
This is because they have an idea that with a larger market size the can gain economies of scale and make a larger profit.
Answer:
Account receivable balance = $1,100 - ($1,100* 5%)
Account receivable balance =$1,100 - $55
Account receivable balance = $1,045
Date Account Title Debit Credit
Cash Account $1,045
To Accounts receivable $1,045
