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
sammy [17]
3 years ago
9

Assume that the reserve ratio is 20% and banks in the system are loaning out all their excess reserve. If people collectively ca

sh out $10 billion from their checking accounts, then the lending ability of the banking system will be_______________.A. increased by $10 billion.B. decreased by $10 billion.C. decreased by $40 billion.D. decreased by $50 billion.
Business
1 answer:
Alex17521 [72]3 years ago
6 0

Answer:

C. decreased by $40 billion

Explanation:

For computing the lending ability, first we have to determine the money multiplier which is shown below:

We know that

Money multiplier = 1 ÷ reserve ratio

                            = 1 ÷ 20%

                            = 5

So, the total cash would be

= $10 billion × $5

= $50 million

Now the lending ability would be

=$50 billion × (1 - 20%)

= $50 billion × 0.80

= $40 billion

You might be interested in
In the U.S., the iron and steel industry is concentrated in the: A.South B.North C.Midwest D.West
lesya [120]
I think the FIRST answer is North because then it goes to the MidWest.
4 0
3 years ago
Arrange the types of economies from least government involvement to greatest government involvement.1. communist economy2.market
Serhud [2]

Number one has the lowest government involvement and number four has the highest.

1. Market economy - In a market economy, the government has very little to do with the decisions regarding investment, production and distribution. Instead, these ideas come from the supply and demand that consumers create.

2. Mixed economy - A mixed economy companies private and public enterprises which has some government influence.

3. Socialist economy - A socialist economy is control by the government but still allows small ownership of productions and some say from individuals.


4. Communist economy - Controlled by the government with no influence from the public. Not a democratic society at all.

3 0
3 years ago
Read 2 more answers
Possession of an open container of alcohol receives a $500 fine and a jail confinement of answer:_______
gayaneshka [121]

Possession of an open container of alcohol receives a $500 fine and a jail confinement of six day

8 0
3 years ago
Of the 168 hours in aâ week, as a full timeâ student, you should spend how many hours per week on schoolâ work?
ehidna [41]
Personally I spend about 4 hours on schoolwork (assuming there are no projects).

(4 hours because I'm taking 4 APs)

I spend extra 2-3 hours just reviewing/studying.

The remaining time is used to have fun ;)
4 0
3 years ago
Is the symbol that represents the cost of preferred stock in the weighted average cost of capital (wacc) equation?
wel

Yakov Co. has $2.3 million of debt, $3.04 million of preferred stock, and $1.34 million of common equity is the symbol that represents the cost of preferred stock in the weighted average cost of capital (WACC) equation.

The math is easy. Divide the present value of each stock position by the total value of the portfolio and multiply by 100 to convert it to a percentage. These weights indicate how dependent the portfolio's performance is on individual stocks.

The cost of preferred stock represents the rate of return required by preferred shareholders and is calculated by dividing the annual preferred dividend (DPS) paid by the current market price.

WACC equation Part 2 – Borrowing Costs and Preferred Stock

Borrowing cost is the rate of return to maturity on a company's debt; similarly, the cost of preferred stock is the rate of return on a company's preferred stock.

Learn more about the WACC equation at

brainly.com/question/12956302

#SPJ4

4 0
2 years ago
Other questions:
  • Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a p
    5·1 answer
  • Mark each statement if it correctly describes facts about China during the Sui dynasty.
    10·1 answer
  • The findings of a recent company survey at Rader Industries showed that employees are experiencing high levels of work stress. T
    14·1 answer
  • Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the
    8·1 answer
  • A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focu
    9·1 answer
  • Magic Events, Inc. is a global concert promoter that is organizing the world concert tour of the newest boy band. The company ha
    14·1 answer
  • PLEASE HELP VRO
    10·2 answers
  • Marketing analytic approaches can be thought of by considering the level of analytic complexity and the value that is created fr
    10·1 answer
  • Perfectly competitive firms will: increase output up to the point that the marginal revenue of an additional unit of output is e
    8·1 answer
  • Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be a
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!