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stellarik [79]
3 years ago
11

If the Fed supply 20 billion dollars into the commercial banking system, how much more money the commercial banks create and sup

ply?
Business
1 answer:
Sav [38]3 years ago
7 0

Answer:

Depends on the reserve ratio, which in turn determines the money multiplier.

Explanation:

The money multiplier formula = 1 / reserve ratio

For example, if the reserve ratio is 10%, the money multiplier will be 10. If the reserve ratio is 20%, the money multiplier will be 5.

To calculate the total effect of a $20 billion inflow, you must multiply that amount by the money multiplier:

E.g. $20 billion x 10 = $200 billion, or $20 billion x 5 = $100 billion

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In the Republic of Sildavia, a market basket of goods and services cost $130 in 2009, $140 in 2010, and $160 in 2011. Based on t
yarga [219]

Answer:

23.07%

Explanation:

For computing the inflation rate first we have to determine the price index for 2011 which is shown below:

Price index for 2011 is

= (market basket of goods and services cost in year 2011) ÷ (market basket of goods and services cost in year 2009) × 100

= ($160) ÷ ($130) × 100

= 123.07%

Now the inflation rate is

= (Price index for 2011 - price index for 2009) ÷ (price index for 2009) × 100

= (123.07 - 100) ÷ (100) × 100

= 23.07%

And, the price index for 2009 is

= ($130) ÷ ($130) × 100

= 100%

4 0
4 years ago
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 290,000 shares of stock outst
gtnhenbr [62]

Answer:I think it would be 1,4568

Explanation:

Hopefully I am right

7 0
4 years ago
Ginger, Inc., has declared a $5.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
lesantik [10]

Answer: $89.68

Explanation:

The Ex-dividend measures how much a stock price drops as a result of the disbursement of dividends. It is calculated by subtracting the dividend from the current stock price.

In the above question the IRS require that taxes be withheld at the time that the dividend is paid.

This means that taxes have to be accounted for first before ex - dividend is calculated.

After tax dividend = 5.40 * ( 1 - 0.2)

After tax dividend = $4.32

Solving for Ex-dividend gives,

= 94.00 - 4.32

= $89.68

The ex-dividend price will be $89.68

4 0
3 years ago
Your company has sent you an email telling you your department must increase the daily output goal of 120 widgets per hour, to 1
-Dominant- [34]

Answer:

Participative Leadership style.

Explanation:

Participative leadership, also known as democratic leadership, is one in which the leader has the central focus of employee engagement and participation in important company decisions. In this style of leadership, the manager has a crucial role of being the main motivator and advisor of the team, being solicitous to guide, coordinate and assist his subordinates in all their work demands, so that the goals and organizational goals are achieved.

This style of participatory leadership would be more appropriate for this scenario as there are deadlines for completing tasks, which requires a motivated and productive team, which is essential in participatory leadership.

The motivation of employees is achieved due to clear and guiding communication from the leader, which creates the perception of inclusion and appreciation of the employee, who feels an essential and important part of the organization.

5 0
3 years ago
Suppose Acap Corporation will pay a dividend of $2.88 per share at the end of this year and $3.01 per share next year. You expec
ruslelena [56]

Answer:

A.P(0)=$48.89

B.P(1)=$51.56

C.P(0)=$49.35

Explanation:

A. Calculation for what price would you be willing to pay for a share of Acap stock​ today if you planned to hold the stock for two year

Using this formula

P(0)=Dividend per share/Percentage of Equity cost of capital +(Dividend next year+Stock price)/Percentage of Equity cost of capital

Let plug in the formula

P(0) = 2.88/ 1.103 + (3.01+ 53.87) / 1.103^2=

P(0)=2.611+56.88/1.216609

P(0)=59.491/1.216609

P(0)=$48.89

b. Calculation for what price would you expect to be able to sell a share of Acap stock in one​ year

Using this formula

P(1)=(Dividend next year + Stock price)/Percentage of Equity cost of capital

Let plug in the formula

P(1) = (3.01 + 53.87) / 1.103 = $50.00

P(1)=56.88/1.103

P(1)=$51.56

c.Calculation for what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one​ year

Using this formula

P(0)=(Dividend per share + P(1)/Percentage of Equity cost of capital

Let plug in the formula

P(0) = (2.88 + 51.56) / 1.103

P(0)=54.44/1.103

P(0)=$49.35

Therefore compare to the answer in ​(a​)

if you planned to hold the stock for two year you will have $48.89 and if you planned to hold the stock for one​ year you will have $49.35.

5 0
4 years ago
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