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Kazeer [188]
3 years ago
10

Hypothetical Country has $120 in currency, $280 in reserves, and $900 in deposits. There are no excess reserves. Use this inform

ation to answer the questions. Enter your answers in decimal form rounded to two decimal places. Calculate the money multiplier. money multiplier: Calculate the reserve ratio. reserve ratio: Calculate the currency drain ratio. currency drain ratio:
Business
1 answer:
Colt1911 [192]3 years ago
4 0

Answer:

Reserve ratio = 31.11%

Currency drain ratio = 13.33%.

Explanation:

Reserve ratio = Reserves/Deposits = $280/$900 =  0.3111, or 31.11%

Currency drain ratio = Currency/Deposits = $120/$900 = 0.1333, or 13.33%

Therefore, reserve ratio is 31.11%, and currency drain ratio is 13.33%.

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Can I Plss get some help on this
Verdich [7]

Based on the inflation rate and the fact that it is rising, the right recommendation would be to A. raise the reserve ratio.

<h3 /><h3>How can you decrease inflation?</h3>

Inflation can be reduced when the reserve ratio is raised because it will reduce the amount of money that banks have to loan out.

This means that there will be less money in the economy which will reduce inflation because less money means less demand for goods and services.

Find out more on effects of inflation at brainly.com/question/27889691.

#SPJ1

3 0
1 year ago
the Bailey Brothers want to issue 20-year , zero coupon bonds that yield 9% .what price should it charge for these bonds if the
prohojiy [21]

Answer:

the amount charged is $178.43

Explanation:

The computation of the price charged is  shown below:

As we know that

Future value = Present value × (1 + rate)^number of years

So,

Present value = Future value ÷ (1 + rate)^no of years

= $1,000 ÷ (1 + 0.09)^20

= $1,000 ÷ 1.09^20

= $178.43

Hence, the amount charged is $178.43

6 0
3 years ago
The United States began collecting federal income tax in which year?
Anna35 [415]
The US started collecting federal income tax in 1913
5 0
3 years ago
Read 2 more answers
Copa Cabana Corporation is considering the purchase of a new machine costing $30,000. The machine would generate net cash inflow
olga_2 [115]

Answer:

C. 20.00 percent

Explanation:

The computation of the accounting rate of return is shown below:

The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ initial investment

where,  

Annual net income is

= Net cash flows - depreciation expense

= $12,000 - $6,000

= $6,000

And, the initial investment is $30,000

So, the accounting rate of return on initial investment is

= $6,000 ÷ $30,000

= 20%

The depreciation expense is

= $30,000 ÷ 5 years

= $6,000

6 0
3 years ago
Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrea
bogdanovich [222]

Answer:

b. decrease in the stock of capital due to wear and tear.

Explanation:

Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.

Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. ... Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.

4 0
3 years ago
Read 2 more answers
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