The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.
Given,
The Federal Reserve sets the reserve requirement at 20%.
Banks hold no excess reserves, and no additional currency is held.
- The money multiplier displays the amplitude of the change in the money supply as a result of the addition of new reserves to the banking system.
- Banks use the money they are not obligated to retain in reserve to make loans, and the borrowed money shows up on other customers' deposit accounts.
- In macroeconomics, the money multiplier is significant because it controls the money supply, which influences interest rates.
- Because it affects monetary policy and the stability of the banking industry, it is also significant in the banking industry.
The money multiplier formula can be used to calculate the total amount of new deposits or money created.
Money multiplier = 1/reserve ratio
= 1/0.20
= 5
change in Total money supply = Money multiplier × change in reserves
= 5 × $400 million
= $2,000 million
Hence, The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.
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Improvement Planning is part of the A.) PROJECT MANAGEMENT process.
Project management process includes initiating, planning, executing, controlling, and closing the work of the team to achieve specific goals based on a specific criteria.
Improvement planning is in the latter part of the project management process wherein it is done after feedback from initial execution is given.
Answer:
Market value of common stocks = 12,100 x $55 = $665,500
Market value of preferred stock = 310 x $91 = $28,210
Market value of bonds = 370 x $2,230 = $825,100
Market value of the company $1,518,810
Capital structure weight of preferred stocks
= $28,210/$1,518,810
= 0.0186
The correct answer is A
Explanation:
In this question, we need to calculate the market value of the company, which is the aggregate of market value of equity, market value of preferred stocks and market value of bond. The capital structure weight of preferred stock is the ratio of market value of preferred stock to market value of the company.
Answer:
How llong does each section have to be
Explanation:
