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SashulF [63]
2 years ago
14

Please explain in detail how would each following events affect the U.S. money supply? a. Banks decide to hold more excess reser

ves. b. People withdraw cash from their bank accounts for Christmas shopping. c. The Federal Reserve sells gold to the public.
Business
1 answer:
nikklg [1K]2 years ago
7 0

Banks decide to hold more excess reserves.

Option - a

<u>Explanation: </u>

The US currency flow is the entire physical cash that circulates throughout the world and the funds in checks and savings.

a. Excess reserves are reserves beyond the legal deposit holding requirements of banks. The rise in the deposit rate of banks decreases financial multipliers which allow the supply of money to decrease.

b. Cash for Christmas shopping is deducted from people's bank accounts::

The expanded currency holding would boost the deposit rate, increasing the liquidity multiplier and decrease the money supply.

c. The Fed is selling gold to public

Gold selling to the public have the same impact as open market bond purchases — it decreases the economic base and thus the money supply fall.

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Kilala moba ako filipino ako panget mo ​
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Answer:

Mas pangít ka

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5 0
3 years ago
Is it 50 hours in a day ?
Orlov [11]

50*7=350 days.

Succesfull!

3 0
3 years ago
Read 2 more answers
The effects of paying a dividend on the basic accounting equation are to a. decrease assets and decrease stockholders' equity. b
Maslowich

Answer:

The corret answer is b. decrease assets and decrease liabilities.

Explanation:

First entry

Earnings Accrued (- Net Equity)

to various creditors (+ Liabilities)

Since the minutes of the assembly must indicate that they are taken from the profits of previous years, the accumulated profits are reduced.

Second entry

Miscellaneous creditors (- Liabilities)

to Banks (- Active)

The first entry represents transfer from one liability to another liability. Although we think that capital accounts are not liabilities, it is not true, given that the value of debt to shareholders of the value of your company, so we can group everything in the same bag.

When decreeing dividends, what is done is to cover a small part of that company value. That is, when dividends are decreed, they become part of a formalized liability.

The second entry is the cancellation of the liability, through one of the ways to extinguish the obligations: payment.

8 0
2 years ago
It is always possible to identify all the causes of a problem completely. please select the best answer from the choices provide
Rasek [7]

It false that the causes of a problem can always possible to identify completely.

<h3>What is problem solving?</h3>

This is defined as the process of finding solution to a task that seems difficult. It is a skill, hence applied after a problem has been identified.

Hence, It false that the causes of a problem can always possible to identify completely.

Learn more about problem solving here : brainly.com/question/23945932

#SPJ4

8 0
1 year ago
Oriole Company purchased equipment for $41600. Sales tax on the purchase was $2496. Other costs incurred were freight charges of
Aleksandr [31]

Answer:

The cost of the equipment is <u>$45,416</u>.

Explanation:

The cost of a newly purchased equipment is the addition of all relevant costs uncured in order to make the equipment ready for use.

The cost of the equipment includes costs such as purchase price, tax paid on the purchase, installation costs, etc.

However, any cost incurred to repair any damage to an equipment during installation is not part of equipment cost. Such repair costs are just ordinary expenses that are charged to the income statement during the period.

Based on the explanation above, the cost of the equipment by Oriole Company can be calculated as follows:

Equipment cost = Purchase price + Sales tax + Freight charges + Installation costs ..................... (1)

Since,

Purchase price = $41,600

Sales tax on the purchase = $2.496.

Freight charges = $624

Installation costs = $696.

Substituting the values into equation (1), we have:

Equipment cost = $41,600 + $2,496 + $624 + $696 = $45,416

Therefore, the cost of the equipment is <u>$45,416</u>.

5 0
3 years ago
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