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
Why is it important to empathize with your user?
fredd [130]

Answer:

Empathy is important because it awakens our senses as designers.

7 0
3 years ago
Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggesti
Brut [27]

Answer:

a) employees can be motivated by open communication.

Explanation:

The answer is that Howie does not realize that employees can be motivated by open communication because by asking employees suggestions as to how jobs could be restructured to improve productivity, John Noble is trying to have a direct communication allowing employees to express their thoughts which will make them feel as part of the company and valued which will result in them feeling motivated to perform well in their job.

The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.

4 0
3 years ago
When the news was dominated by only three networks and a handful of national papers, the news sources tended to be _____________
harkovskaia [24]

More moderate. Now there are more organizations that focus on a far left or far right audience and their coverage is more polarized/biased toward their opinion that in the past.

5 0
3 years ago
Describe the three most downturns in the United States economy since the 1920's
velikii [3]
The Great Depression, the recession, I don't know the other one.
5 0
3 years ago
The assets of a company total $738,000; the liabilities, $219,000. what are the net assets?
ziro4ka [17]
739,000 - 219,000 = 520,000

The net assets are assets minus liabilities, so it is $520,000 in this case.
4 0
3 years ago
Other questions:
  • Money must be very difficult to counterfeit, that is, to: Group of answer choices: A. convert into another form of currency. B.
    11·1 answer
  • Concord Corporationreported the following year-end information: beginning work in process inventory, $250000 cost of goods manuf
    15·1 answer
  • In general, individuals and nations should specialize in producing goods _________ other individuals or nations.
    12·1 answer
  • If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Che
    6·1 answer
  • Higher interest rates result in less borrowing as ________ business projects become viable for a profit.
    7·1 answer
  • A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and
    7·1 answer
  • Jade puts a picture of a collection of rare sports memorabilia up for bids on BuyBay, an Internet auction site. Khalil makes the
    14·1 answer
  • Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the bar
    9·1 answer
  • What are some factors that would influence supply? Explain
    8·1 answer
  • The definition of workplace teams includes the requirement that team members _____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!