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vredina [299]
3 years ago
9

An increase in the reserve requirement _____. rev: 06_20_2018 Multiple Choice increases the money supply by decreasing excess re

serves and decreasing the monetary multiplier increases the money supply by increasing excess reserves and increasing the monetary multiplier decreases the money supply by decreasing excess reserves and decreasing the monetary multiplier decreases the money supply by increasing excess reserves and decreasing the monetary multiplier
Business
1 answer:
Jlenok [28]3 years ago
4 0

Answer:

decreases the money supply by decreasing excess reserves and decreasing the monetary multiplier

Explanation:

If there is increased in the reserve requirement so there is also increase the credit cost but it would lead to a decrease in money supply through the decrease in excess reserves that result into reduction in money multiplier also there is the reduction of loan activity  

Therefore the third option is correct

You might be interested in
The standardization strategy uses __ marketing activities across national boundaries whereas the adaptation strategy uses a ____
nadezda [96]

Answer:

The correct answer is letter "C": similar; differentiated strategy.

Explanation:

The advertisement of a product can be shaped according to the region where the good or service will be offered whereas, in some other cases, changes in marketing can be minimal or null. In such scenarios, the standardization approach uses the same marketing method for every country where the company has a presence. This will only work if consumers worldwide have similar needs and preferences.

The differentiated strategy, instead, links customers' expectations, patterns, and cultures with the marketing processes of the firm. This approach aims to give a tailored good or service to different consumers and is mostly used.

8 0
3 years ago
During January, Luxury Cruise Lines incurs employee salaries of $2.4 million. Withholdings in January are $183,600 for the emplo
garri49 [273]

Answer and Explanation:

The journal entry to record the  employee salary expense, withholdings, and salaries payable is shown below:

Salaries expense Dr $2,400,000

     To Income tax payable  ($360,000 + $150,000) $510,000

     To FICA tax payable $183,600

     To Account payable $24,000

     To Salaries payable $1,682,400

(being employee salary expense, withholdings, and salaries payable is recorded)

Here the expenses are debited and payable are credited as it increased the expenses and liabilities

6 0
3 years ago
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The fini
saveliy_v [14]

Answer:

Production for 2nd Quarter = 15,000  units

Explanation:

given data

ending inventory of finished goods = 25 %

finished goods inventory at year start =  4,000 units

so we consider here Quarter sales in unit  

1 = 12,000

2 = 14,000

3 = 18,000

4 = 16,000

solution

we get here Production for 2nd Quarter  that is

Production for 2nd Quarter = Quarter 2 sale + Desired Q2 ending inventory - Beginning Q2 inventory  ...................1

so it will be as

Production for 2nd Quarter = Quarter 2 sale + (25% of Q3 Sale) - (25% of Q2 sale)

put here value

Production for 2nd Quarter = 14000 + (18000 × 25%) - (14000 × 25%)

Production for 2nd Quarter = 14000 + 4500 - 3500

Production for 2nd Quarter = 15,000  units

3 0
3 years ago
Respond to the following comments:
MakcuM [25]

Answer:

Comment for statement A -  The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the   appropriate discount rate must still be specified.

Comment for statement B - There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

Explanation:

a)

“I like the IRR rule. I can use it to rank projects without having to specify a discount rate”

The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the   appropriate discount rate must still be specified.

b.

“I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk”

There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

5 0
3 years ago
2. What are the advantages of utilizing a targeted marketing strategy?
aleksklad [387]

Answer:

Explanation:

Target marketing is a way of focusing your advert on specific people, location, age group, interest, in order to have a maximum yield.when utilizing target marketing strategy, there are a lot of advantages that are attached to it as discussed below;

  1. Precise advertisement ; when you have a target market you are aiming at you will not waste your energy in running numerous advertisements to the target area you only advertise what they need. e.g if a certain area in London demands for ladies bags so often and you make both female bags and male bags, your advert will definitely be on the bags that are demanded more often.
  2. It saves cost ; cost of running advert for so many goods and services will be reduced because you already know your target customers you only advertise what they needed with little money and more result.
  3. Loyalty; when you channel your strength in an area of target you become more reliable and trustworthy and you start to gain loyalty from your existing customers and referrals from them.
  4. Increased customer base your customer base will increase because your customer base has friends and family so they introduce you to them and from there your customer base increases.
8 0
3 years ago
Read 2 more answers
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