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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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ne of the most important financial management activities that a firm undertakes is its evaluation and allocation of investment f
natulia [17]

Answer:

This statement is True

3 0
3 years ago
Which of the following terms addresses the problem when introducing a new product line could steal sales away from an existing p
lora16 [44]

Answer:

"A"

Explanation:

Market enhancement is the process of improving the production line of an existing product in order to increase the value, efficiency and effectiveness giving the product a market leading status and an edge over the rivals and  new entrants.

It involves research , review and upgrade of production system

This is used to ensure that an existing product has the features to withstand the competition that a new product might bring

7 0
3 years ago
Malik Boykin is paid $8.20 per hour. and time and a half for any work over 40 hours
Viefleur [7K]

<u>Pay of Malik Boykin:</u>

Step 1:

Adding the total hours for each week:

Week of 3/10 = 5.5+6+9+12+7 = 39.5

Week of 3/17 = 8+8.5+9+13+4.5+4 = 47

Step 2:

Any sum of 40 hours or less gets multiplied by the hourly salary:

Week of 3/10: 39.5\times\$8.20 = \$323.90 - That's the pay for that week

Week of 3/17: 40\times\$8.20 = \$328

Step 3:

For hours worked over 40 the salary is 1.5 times the normal salary:

\Rightarrow\$8.20\times1.5 = \$12.30

Now multiply the hours over 40 for that week by the time and a half:

\Rightarrow\$12.30\times7 = \$86.10

And adding it to the \$328 we get,

\$328+\$86.10=\$414.10

Therefore,  Week of 3/10: \bold{\$323.90}  and  Week of 3/17: \bold{\$414.10}

6 0
3 years ago
Cost of goods sold $500,000 Average inventory 62,500 Determine (a) the inventory turnover and (b) the number of days' sales in i
nadya68 [22]

Answer:

(a) 8 times

(b) 45.6 days

Explanation:

Given that,

Cost of goods sold = $500,000

Average inventory = $62,500

Assume 365 days a year.

(a) Inventory turnover ratio:

= Cost of goods sold ÷ Average inventory

= $500,000 ÷ $62,500

= 8 times

(b) Number of days' sales in inventory days:

= 365 days ÷ Inventory turnover ratio

= 365 days ÷ 8

= 45.6 days

8 0
3 years ago
As you are forming a team, it is important to bear in mind that:_____. group of answer choices
Ede4ka [16]

As you are forming a team, it is important to bear in mind that Each member should have only 1 specialization. Jane serves to monitor & control the team processes.

In order to become more effective, specialization in business entails concentrating on a single product or a small range of products. Specialization can boost productivity and give a company or economy a competitive advantage.

When individuals and organizations focus on creating what they are proficient at, or even better, the best at, specialization occurs. For instance, KFC specializes in fried chicken and chicken hamburgers, whereas Starbucks specializes in serving uniform coffee.

If you specialize, you concentrate on a particular facet of a bigger subject. If you're a nurse, you might focus on giving care to infants and children as your area of specialization in pediatric care.

Learn more about specialization here

brainly.com/question/2246305

#SPJ4

8 0
10 months ago
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