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
mr Goodwill [35]
3 years ago
13

In a 100-percent reserve banking system, if people decided to decrease the amount of currency they held by increasing the amount

they held in checkable deposits a M1 would not change. b M1 might rise or fall. c M1 would increase. d M1 would decrease.
Business
1 answer:
MariettaO [177]3 years ago
8 0

Answer:

a M1 would not change.

Explanation:

the checkable deposits are part of M1 as well as the currency and coins. Therefore, a component of M1 decrease (currency) while another of M1 (checkable deposits) increase.

As the banking system works with a 100-percent required reserve there is no multiplier effect from the deposit therefore M1 do not change.

You might be interested in
Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amoun
AlexFokin [52]

Answer:

Please see explanation

Explanation:

The following journal entry shall be recorded in the accounts of Weld-Rite Company  in respect of salaries expense to be accrued as at December 31:

                                                           Debit                Credit

Salaries expense                              $3,600

(6,000/5*3)                                                                

Salaries payable                                                         $3,600

4 0
2 years ago
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar)
timama [110]

Question

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:

Year     cashflow

0           -100

1-10            15

0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project

Answer:

NPV= -$32.58

Explanation:

The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:

Ke= Rf +β(Rm-Rf)  

Ke =? , Rf- 5%,, Rm-15%, β- 1.30

Ke=5% + 1.30× (15-5)=  18%

The NPV = Present value of cash inflow - initial cost

 =  A×(1-(1+r)^(-10)/r  - initial cost

A- 15, r-18%

NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58

NPV = -$32.58

5 0
3 years ago
The demand curve shows that the quantity consumed of a good or service
Zigmanuir [339]

Answer:

increase by price

Explanation:

because, of quantity let me m know if I am correct I am pretty sure I am

8 0
2 years ago
During which period does the fed appear to be most anti-inflation? explain your answer
Tomtit [17]

In most of the 1970 period, the fed appear to be most anti-inflation. The United States has been experiencing a pattern of rising prices since the late 1960s.

Inflation refers to an overall rise in the cost of goods and services throughout a nation. Inflation in United States started gradually increasing from yearly rates that had previously been less than 2 percent for several years.

The Federal Reserve tightened policy in 1973 in response to rising inflation rates. However, the Fed loosened its stance before adequately controlling inflation in response to increased unemployment. In December 1976, the annual inflation rate reached a low of 5% before rising once more.

According to the personal consumption expenditure index, prices had increased 7.7% from the previous year by January 1979, raising concerns that inflation would continue to climb. Concern was also raised regarding the US currency, which had declined 13% in value versus.

To learn more about Inflation, refer

brainly.com/question/28190771

#SPJ4

5 0
1 year ago
Pike Corporation has total stockholders' equity of $8,690,000 as of December 31, 2017. The company has 300,000 shares of $2 par
mrs_skeptik [129]

Answer:

$22

Explanation:

Book value per share of common stock=$8,690,000-(20,000*100)-(20,000*100*8%)/300,000

=$8,690,000-$2,000,000-$160,000/300,000

=$22

6 0
3 years ago
Read 2 more answers
Other questions:
  • ​some of the entrepreneurs' personal factors in small-business success include
    5·1 answer
  • In the T-bill secondary market the ask yield will normally be less than the bid yield. True or False
    12·1 answer
  • How can the price of baseball bats be affected by the demand for paper
    12·1 answer
  • The sense of urgency with respect to entrepreneurship tends to increase in European countries and other places where unemploymen
    8·1 answer
  • For the past 60 years, _____ have been applied to structured tasks such as record keeping, simple clerical operations, and inven
    15·1 answer
  • Sales revenue for a sporting goods store amounted to $ 535 comma 000 for the current period. All sales are on account and are su
    9·1 answer
  • Imagine you live in a society with progressive taxation. Your friend makes half of your salary and pays 20 percent in income tax
    7·2 answers
  • Are social media videos a good way to market yourself to employers
    11·2 answers
  • Nancy's lease deed clearly states that she will have to pay $1,250 as rent per month and $2,000 as a one-time payment to secure
    9·1 answer
  • You are planning a graduation trip to mexico. Other things the same, if the dollar appreciates relative to the peso, then:.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!