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mylen [45]
3 years ago
14

Assume that the required reserve ratio for the commercial banks is 25 percent. If the Federal Reserve Banks buy $3 billion in go

vernment securities from the non-bank securities dealers, then as a result of this transaction, the lending ability of the commercial banking system will increase by:
A. $4.5 billion B. $9 billion C. $12 billion D. $15 billion
Business
1 answer:
erastova [34]3 years ago
8 0

Answer: $12 billion

Explanation:

Given that,

Required reserve ratio (rr) =  25 percent

Fed purchases government securities = $3 billion

Money multiplier = \frac{1}{rr}

                            = \frac{1}{0.25}

                            = 4

Lending ability of the commercial banking system will increase by:

= Money multiplier × Increase in Fed purchases

= 4 × $3 billion

= $12 billion

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Spencer Co.'s common stock is expected to have a dividend of $3 per share for each of the next 9 years, and it is estimated that
sweet-ann [11.9K]

Answer:

the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is $86.27

Explanation:

The computation of the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is shown below:

Expected dividend is

= $3 × 6.2469

= $18.7407

Now the market value is

= $135 × 0.5002

= $67.527

So, the maximum price is

= $18.7407 + $67.527

= $86.27

hence, the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is $86.27

5 0
3 years ago
Topsider Inc. is evaluating whether to replace an existing leather-cutting machine with a new machine that has a five-year life.
pogonyaev

Answer:

$9,520

Explanation:

Terminal cash flow = After tax salvage value of new machine + Recovery of net working capital

Terminal cash flow = $6,000 + $3,520

Terminal cash flow = $9,520

So, the new machine's terminal cash is $9,520.

5 0
3 years ago
If i am medically retired from the military do i still receive va disability pay
yaroslaw [1]
If you have a VA service-connected disability rating of 10% or higher, you are eligible to receive a monthly compensation check from the VA. The monthly compensation payments vary by your disability rating—and if your rating is 30% or higher—the rates are increased, depending number of dependents you have filed on your claim.
6 0
3 years ago
Taxes on goods with ___________ demand curves will tend to raise more tax revenue for the government than taxes on goods with __
Brrunno [24]

Answer:

The answer is A

Explanation:

Taxes on goods with INELASTIC demand curves will tend to raise more tax revenue for the government than taxes on goods with ELASTIC.

Goods with inelastic demand are insensitive to price. An increase price of the goods for example from an increase in tax on the goods will have no significant effect in the quantity demanded. Consumers will still buy it with an higher. So taxing this goods is a good source of revenue for the government.

Whereas goods with elastic demand are very sensitive to rice. Any slight increase in price will result in a significant decrease in quantity demanded. So government increasing tax on this good will be bad for its tax revenue because consumers won't be it

4 0
3 years ago
The labor-supply curve is affected by the trade-off between labor and leisure.
NikAS [45]

TRUE.

The labor-supply curve is affected by the trade-off between labor and leisure.

The  opportunity cost of leisure depends on the wage rate, it increases and people supply more labor. Main factors determining the labor supply curve how desirable the work appears to its employees relative to the alternatives available in the market.

Other factors that encourages are government policies and procedures that are labor and trade effective or not. The quantity of workers trained for a particular job specifications. The number of workers in economy and the education required further.

To learn more about labor supply here,

brainly.com/question/23876084

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4 0
2 years ago
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