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Romashka-Z-Leto [24]
3 years ago
5

Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.

10.
1. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve ratio?

2. Initially, the money multiplier is m = _____.

3. If the currency-to-deposit ratio rises to 0.30, the multiplier falls to m = _____.

4. If, instead, the excess reserve-to-deposit ratio rises, the multiplier will be m = _______.
Business
1 answer:
Lana71 [14]3 years ago
7 0

Answer:

Money multiplier, MM = (1 + Currency-deposit ratio) / (Currency-deposit ratio + Excess reserve ratio + Required Reserve ratio)

(a) Initially,

MM = (1 + 0.25) / (0.25 + 0.05 + 0.10) = 1.25 / 0.4 = 3.125

(b) Currency-deposit ratio = 0.3

MM = (1 + 0.3) / (0.3 + 0.05 + 0.1) = 1.3 / 0.45 = 2.89

(c) Excess reserve ratio rises to which number? MM cannot be computed unless exact number is provided.

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Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate
gayaneshka [121]

Answer:

The correct answer is C

Explanation:

Covered interest arbitrage (CIA), it is an strategy or tool of arbitrage trading, where the investor capitalizes on the rate of interest which is differential among two countries through using the forward contract for eliminate the exposure or cover to exchange the rate risk.

So, because of covered interest arbitrage, the market forces realign the cross exchange rate among two countries grounded on spot exchange rates of two currencies.

8 0
3 years ago
You are a network engineer for a midsized government contractor working on a project for a national government lab. Your network
vaieri [72.5K]

Answer:

In creating a Bill of Material for the infrastructure and tools for the lab, we need to create certain test plans, by having to test applications anf devices that will work in a new environment

Infrastructures devices in the IPv6 lab is needed such as switches, routers, firewalls.

End systems are important with various operating systems and application that is hosted in a fictional network.

At the end of the day, it might be costly, but durability is rest assured on the long period of time.

Explanation:

Solution

By setting up a IPv6 and converting labs from IPv4 to IPv6 is not only tasking, but we need to create or design certain test plans.

We  test how applications and devices will work in a new environment and this set up will be like a real world environment  (scenario)

This IPv6 lab will need infrastructure devices like routers, firewalls, routers, switches.

With the addition of infrastructure devices it also needs end systems with various operating systems. and  applications that are hosted in the operational network

All these things will cost but  the durability is assured on the long period.

Setting up a full lab set up may costly but it provides an environment where we can test application and infrastructure safely.  this type of system testing will give insights to how the system will function when we allocated operationally . this will helps to reduce cost  and if we want test these for multiple labs we can develop a tunnel.

Tunnel Is nothing but a native common thing that connects all the labs that want to initiate an IPv4.

Because of time and cost both will decrease and infrastructure durability increases and performance .

6 0
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algol13
Businesses often engage in a variety of tactics to influence government policy. This includes lobbying, political contributions, and interest group politics.
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Answer:

d.guarantee the company will earn a profit

Explanation:

Internal controls are controls put in place by management to mitigate against identified risk. Risk basically  refers to what could go wring in a process. Controls are put in place to mitigate against the risk of error or fraud and do not necessarily prevent the company from making a loss.

Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc

Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations,  business information is accurate ( no misrepresentation of records due to error) etc.

Hence Internal control does not consist of policies and procedures that guarantee the company will earn a profit.

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