Answer:
If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___.
$3,200.
Explanation:
a) Data and Calculations:
Excess reserves = $800
Reserve requirement = 20%
Therefore, M1 money supply = $800/20% = $4,000
The increase in the M1 money supply will be $3,200 ($4,000 - $800)
b) The amount of funds that a bank is required by the central bank to hold in reserve to meet liabilities in case of sudden withdrawals by depositors is called the reserve requirement. It is usually stated as a percentage by the Fed Reserve. The Fed uses reserve requirement as a tool to increase or decrease money supply in the economy and influence interest rates. What the Fed does with the reserve requirement, therefore, depends on the monetary policy that it chooses to respond to the money market.
The network diagram for the activities indicated above is given in the attached image.
<h3>What is a network diagram?</h3>
A network diagram is a graphical depiction of a project that consists of a number of connected arrows and boxes that illustrate the interdependence of the project's operations.
The activity description is represented by boxes or nodes, and the interaction between the activities is represented by arrows.
<h3>What is the use of a network diagram?</h3>
A network diagram enables a project manager to keep track of each component of a project and easily communicate its status to others.
It also provides:
- visual depiction of progress for stakeholders; and
- Creating project workflows.
Learn more about a network diagram:
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Answer:
The closing balance from the excel sheet is $5,000.00
Explanation:
Solution
Given that:
The loan balance required l for each month can be computed as follows:
The loan balance = additional cash needed – cash used to retire debt + loan balance from previous month
Now
By applying the excel formula to perform this task is stated as follows:
D34 = SUM(D31-D33,C34)
The same formula is used to get the values for E34 to I34.
Kindly find an attached copy of the updated excel sheet after applying above formula which is a part of the solution is as follows:
OB is false. Hope that answers your question