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Lerok [7]
3 years ago
6

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve rat

io = 0.20, excess reserves prior to the currency deposit = $0. The $40 billion deposit of currency into checking accounts will initially create __________.
Social Studies
1 answer:
serg [7]3 years ago
6 0

Answer: The $40 billion deposit of currency into checking accounts will create "$40 billion of new checkable deposits."

Checkable deposits are also known as demand deposit which means that the owner can withdraw without any prior notice.

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Suppose the real rate is 1.9%, and the inflation rate is 3.1%. what nominal rate would you expect to see on a treasury bill?
olga nikolaevna [1]

Using the Fisher equation, which shows the exact relationship between nominal interest rates, real interest rates, and inflation is:

The solution would be:

(1 +R) = (1 +r)(1 +h)


R= (1 + .031)(1 + .019) – 1


= (1.031)(1.019) – 1


= 1.050589 – 1


=0.050589 or 5.059%

6 0
3 years ago
Who may regulate a natural monopoly?
Scilla [17]

The correct answer is C.

A natural monopoly is a market situation in which a single firm serves the whole market, therefore it is the only producer of a certain good or service, due to the fact that there exist some natural conditions which establish huge barriers for new competitors entering in the market, in the sense of extremely large fixed costs.

In such a case there is no market competition, therefore the monopoly can decide on the quantity supplied and on the price of the products (usually establishing a much higher one that if there was competition). Such a situation is harmful for consumers. They purchase products at a higher price and with lower quality because, as there is no competition, producers are not forced to continuously develop and improve their products. This is why goverment intervenes, trying to soften the situation by decreasing the profits of the monopolists and increasing the welfare of consumers, and the social welfare.

3 0
4 years ago
A researcher wants to test the effect of alcohol on driving performance. Participants first drive through an obstacle course bef
malfutka [58]

Answer:

testing effect

Explanation:

Testing effect: The term testing effect refers to the process of a person's memory and learning being facilitated or stimulated through the incorporation of the rehearsal or practice test in the person's learning regime. It talks about the process of retrieval that has a great implication on the memory or learning of a person.

Testing effect has a great impact on the end result of an individual's test being taken many times.

Example: A multiple attempts to any competitive exam leads a person to get better results than before as it can increase the score.

In the question above, the change in performance may best account for the testing effect.

5 0
3 years ago
Describe how construction of the Erie canal changed america ?
VMariaS [17]
I would say C. good luck
4 0
3 years ago
What are a few good things Francisco Pizarro did?
Sophie [7]
-Colonize the Incan Empire
-Bring Spanish culture to South America
-Help speed up the colonization process in South America
-created the first viceroy in South America, the viceroy of New Castile

That is if you consider this good of course
3 0
3 years ago
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