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
Sidana [21]
3 years ago
8

Suppose that the reserve requirement for checking deposits is 12.5 percent and that banks do not hold any excess reserves.

Business
1 answer:
andriy [413]3 years ago
5 0

Answer:

1) If the Fed sells $2 million of government bonds, the economy’s reserves Decrease by $2 million, and the money supply will Decrease by $16 million.

2) The money multiplier will remain unchanged. True

3) As a result, the overall change in the money supply will remain unchanged. True

Explanation:

1.) We have the reserve requirement for checking deposits as 12.5% with banks not holding any excess reserves.

To calculate Money Multiplier:

Money Multiplier = \frac{1}{required reserved ratio} = \frac{1}{0.125} = 8

If the Fed sells $2 million of bonds, reserves will decrease by $2 million and the money supply will decrease by 8 x $2 million = $16 million.

2) and 3) Now the Fed lowers the reserve requirement to 10 percent, but banks choose to hold another 2.5 percent of deposits as excess reserves.

To calculate Money Multiplier:

Money Multiplier = \frac{1}{required reserved ratio} = \frac{1}{0.1+0.025} = 8

Money multiplier is 8 same as in 1) Therefore the statements: "The money multiplier will remain unchanged" and "As a result, the overall change in the money supply will remain unchanged" are both True.

You might be interested in
Jessica is a U.S. Army Reservist and in 2019 traveled 130 miles each way to serve duty at a local military installation. She was
faust18 [17]

Answer:

Jessica's for AGI deduction for these costs is:

b. $14.00.

Explanation:

The aggregate gross income (AGI) can be defined as the total amount of income that an individual earns and is used in calculating the amount of income tax that an individual is liable to pay. The AGI can be expressed as follows;

AGI=T×N×W

where;

AGI=aggregate gross income

T=toll amount per way

N=number of times she reported

W=number of way

In our case;

AGI=unknown, to be determined

T=$1.75

N=4

W=2

Replacing;

AGI=(1.75×4×2)=$14.00

Jessica's for AGI deduction for these costs is:

b. $14.00.

4 0
3 years ago
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17%, while stock B has a standard
Goryan [66]

Answer:

.793

Explanation:

Formula

.032=.7^2*.17^2+.3^2*.23^2+2(.7)(.3)(.17)(.23)p

.032=.0142+.0048+.0164p

.032-.0142-.0048=.0164p

.0164p=.013

p=.013/.0164

p=.793

3 0
3 years ago
Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as
sweet-ann [11.9K]

Answer:

d, all states, as no state requires at least two members to create an LLC

Explanation:

The requisite of two members to create an LLC was removed from all states in the USA. Now, all states allow a single-member LLC. Massachussets was the last one to eliminate that requisite in 2003.

Maybe this change in laws was because owners cheated on that requisite by placing as the two members (owners) a man and his wife, or a woman and her husband, or some other person (in direct relation with the owner) which was just placing the name but the company actually belonged to only one member.

4 0
2 years ago
Question 6 of 10 When making an ad, avoid using:
Alexeev081 [22]

Answer:

Its A

Explanation:

Because people dont like wierd ads and sketchy things

3 0
3 years ago
Read 2 more answers
The time value of a call option is I) the difference between the option's price and the value it would have if it were expiring
Nat2105 [25]

Answer:

I) The difference between the option's price and the value it would have if it were expiring immediately

Explanation:

Time value in options trading simply refers to the part of an option's premium (cost or price) which is attributed to the amount of the time remaining until expiration.

An addition of the option's time value and intrinsic value equals the total premium of an option.

Therefore, we can mathematically state that:

Time Value = Option Premuim(Price) - Intrinsic Value.

The Option Premuim is an amount of money known as the price or cost.

In an exchange for the right granted by the option, an option buyer pays for the premium to an option seller.

Generally, it is seen that the more time that remains until the expiration, the greater the time value of the option. This happens as a result of investors willing to pay a higher premium for more time since the longer time taken to execute contract will be profitable due to a favorable move in the underlying asset.

Also, the lesser time remaining on an option will result in lesser willingness of investors to pay because the probability for profitability is slim.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Brandy enterprises discarded a computer that was fully depreciated and had no residual value. as a result of this​ transaction,
    10·1 answer
  • How does the executive branch interact with the other two branches?<br>​
    10·1 answer
  • The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current
    7·1 answer
  • 1.) What are are the advantages and disadvantages of teams?<br> Discussion Question( Managing Teams)
    13·2 answers
  • On July 31, 2017, Keeds Company had a cash balance per books of $6,140.00. The statement from Dakota State Bank on that date sho
    8·1 answer
  • Why do you think it’s important to find a career that matches your personality? Come up with an example (real or made-up) of a p
    5·1 answer
  • Select the correct answer.
    8·2 answers
  • Juan invests a total of $350000 in two accounts. The first account earned a rate of return of 3% (after a year). However, the se
    12·1 answer
  • The value of which of these expressions is closest to e?
    8·1 answer
  • Explain the initial entry strategy of passive vs. active. give an example for each.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!