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kenny6666 [7]
3 years ago
11

If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu

ired checkable deposits, then the effective monetary multiplier for the banking system will be:
a. 3
b. 4
c. 5
d. 6
Business
1 answer:
coldgirl [10]3 years ago
8 0

Answer:

B) 4

Explanation:

the monetary multiplier before this newly acquired checkable deposit was 1 / required reserve ratio = 1 / 20% = 5. Since the banks decided to increase the reserve ration to 25%, then the money multiplier will decrease to 1 / 25% = 4.

The monetary multiplier shows the money creating effect of the fractional banking system. E.g. you deposit $1,000 at bank A. Bank A will lend $750 to Bill. Bill then purchases a bike from Tom and Tom deposits the $750 in bank B. Bank B will then lend $562.50 to Sarah. Sarah purchases a TV from Alex, and Alex deposits the money in bank C. Then bank C will lend $421 to Frank, and the cycle goes on.

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Lock Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and January 1. The effect
Arte-miy333 [17]

Answer:

Explanation:

see attached file.

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8 0
3 years ago
The significant increase in consumer demand following World War II marked the beginning of the:
Tom [10]

Answer:

b. marketing concept era.

This era existed from 60's to 90's. And was called the 'baby boomer era'.  This era was focused on satisfy the client and producing goods and services.

And in order to satisfy this they use strategies of marketing in order to attract the customers.

Explanation:

a. production era.

False. This era was from 1860-1920 since this era occurs during the Industrial revolution and  not at the beginning of the second world war.

b. marketing concept era.

Correct. This era existed from 60's to 90's. And was called the 'baby boomer era'.  This era was focused on satisfy the client and producing goods and services.

And in order to satisfy this they use strategies of marketing in order to attract the customers.

c. customer relationship era.

False. This era was from 1990-2010 and was focused in create long-term relationships. So then is not the correct option if we analyze the historical time.

d. selling era.

This era was from 1920 and 1940 and not correspond to the begin of the second world war so this one is not the correct option.

6 0
2 years ago
Read 2 more answers
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sale
IceJOKER [234]

Answer:

$8,870

Explanation:

Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Using this formula

Balance in the allowance for doubtful accounts=

(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance

Let plug in the formula

Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000

Balance in the allowance for doubtful accounts=$6,870+$2,000

Balance in the allowance for doubtful accounts=$8,870

Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870

6 0
2 years ago
When the price level rises, the number of dollars needed to buy a representative basket of goods: A. increases, and so the value
muminat

Answer: B. increases, and so the value of money falls.

Explanation: When the price level rises, the number of dollars needed to buy a representative basket of goods<u><em> increases, and so the value of money falls</em></u>. A representative basket of goods refers to a fixed number of consumer goods and services. The price of these goods and services are valued annually. If one or more of these products increase their value you will need more dollars to buy the basket of goods. So, the value of money falls.

7 0
3 years ago
Hamlet, a calendar year taxpayer, owns 1,000 shares of Vanity Corporation common stock, which he purchased 2 years ago for $4,00
Tasya [4]

Answer:

Hamlet

Hamlet can recognize a loss of $1,500 in 2020.

Explanation:

a) Data and Calculations:

Number of shares in Vanity Corporation = 1,000 common stock

Period of stockholding = 2 years

Cost of investment = $4,000

Sales proceeds from shares = $2,500

Capital loss = $1,500

b) Hamlet can use the capital loss deduction of $1,500 to reduce his other capital gains of the similar term in the first instance.  Note that the capital loss is a long-term capital loss since the investment was held for two years.

4 0
3 years ago
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