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SVETLANKA909090 [29]
3 years ago
12

For a variety of reasons, a bank sometimes will hold more reserves than is legally required. These reserves are known as excess

reserves. How does holding excess reserves affect the money supply? Choose one:
(A) The money supply will increase as banks loan out more money.
(B) The money supply will increase as banks hold more vault cash.
(C) The money supply will increase as a bank’s vault cash falls.
(D) The money supply will decrease as banks loan out less money.
(E) There is no impact. The level of deposits and loans will be unaffected.
Business
1 answer:
sweet-ann [11.9K]3 years ago
8 0

Option D , The money supply will decrease as banks loan out less money.

Explanation:

Banks are lending their deposits and increasing the economic supply of money. Nevertheless, if the bank holds more money and invests less then the supply of money into the economy rises.

Conversely, the ratio increased, boosted, lowered the cash multiplier, and decreased the supply of money. Expansionary fiscal policy is the decrease in the necessary reserve ratio; contraction monetary policy is the rise in the reserve ratio.

When attempting to control the monetary supply, the Fed has two challenges. Firstly, the Federal does not regulate the amount of cash families want to keep in their accounts as deposits.  The second problem seems to be that the banks ' capital is not verified by the Fed. If the banks opt for more excess reserves and deposits, the sum of money will be lower.

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An important marketing metric used to evaluate how well firms perform on the five service quality dimensions is the __________,
Pavlova-9 [17]

Answer:

<u>Zone of tolerance</u>

Explanation:

Zone of tolerance with respect to a service refers to, the acceptable range to a customer, that lies between the perceived desired level of service expected and the minimum level of service acceptable.

The service which the customer anticipates or expects to be delivered by a firm is referred to as predicted service.

Customer expectations do not depict a single level of expectation, rather they follows a range of expectations. This range is represented as zone of tolerance.

If the service received lies in the zone of tolerance, the customer would be satisfied. If it is higher than the desired level, the customer would consider it exceptional.

In case the service received falls below the minimum level of acceptance, the customer would be disappointed and feel deceived or tricked.

4 0
3 years ago
Martinez Corporation commenced operations in early 2020. The corporation incurred $48,500 of costs such as fees to underwriters,
igomit [66]

Answer:

See below.

Explanation:

Since the expenses are related to the formation of the business, we first capitalize these expenses and record them in our balance sheet as,

Debit Intangible Assets (Formation) by $48,500

Credit Cash/Bank by $48,500

This records an asset for the year of operation.

We amortize or depreciate these type of capitalized costs over a defined period of time. Assuming that we write off the entire cost by the end of first year we will record amortization as,

Debit Amortization expense/Income statement by $48,500

Credit Intangible Assets (Formation) by $48,500

Hope that helps.

7 0
3 years ago
1. Identify and briefly discuss three factors which influence the choice of crops produced by commercial farmers?[ 2. What is th
wolverine [178]

Answer:

1. a) Location,

    b) earnings

    c) Whether the crop can be produced by its resources or not

Explanation:

Farmer traders consider location as an important element for their crops, the location depends on the quality of the land and the taxes it will pay, and the location of their crop is important for the transport of their products to ensure they arrive in the best condition to the market.

Likewise, the farmer considers as an influential factor how much profit he will obtain with the harvested product, choosing to cultivate the one that produces the greatest benefits, also he must consider having all the labor and resources that are necessary to carry out his harvest and be able to transport it to market it.      

2. Dairy producers need to consider the proximity of farms to the distribution market because the product has a limited time to go expire .

Explanation:

Dairy products are the most delicate and difficult to transport since they have a short time to expire, this is one of the reasons that commercial farmers should take into account that the location of their farm is at a considerable distance from the market, in this way being able to transport their product more safely and distribute it without fear that it expires and lose all their profits.

3. A commercial farmer is concerned with two costs, one of which is the cost of transportation and the other cost is whether there will be a benefit to his crop.

Explanation:  

Commercial farmers at the time of cultivation consider two very important costs for them, one of them the cost of transporting their products to the place of distribution, so they must ensure that it is not very high since it is also important for them the benefit they will get, for this reason, farmers take care that the investment is less so they can enjoy good profits.

   

4. Von Thunen's theory mentions that the distance to the market is a critical point for farmers. Von Thunen explains that a farmer's earnings may decrease the further from the market where he sells his products.

Explanation:

5.  1. One of Von Thunen's assumptions is that there is only one market available and it is self-sufficient without outside influence.

    2. Another assumption is the physical environment is uniform; without rivers, mountains, etc.

    3. And one last assumption is that all farmers act to maximize profits.

Explanation:

1. In Von Thunen's first assumption, he considers there is only one market available and it does not need external influences, but this assumption may not be so correct since there cannot be a single market due to the consumer demand that exists and because there are other farmers from different cities that will bring their products, also cities need an external influence for change, and changes are necessary for the growth of the city.

2. In his theory, Von Thunen mentions the physical environment of the places for agricultural production is uniform, which is difficult due to the landforms that create modifications in the terrain, this uniformity that Thunen mentions could only be achieved if the grounds were modified by men.

3. Thunen's last assumption mentions a very successful situation where farmers carry out actions to obtain the greatest profits, they will continue working to continue obtaining the best benefits.

6. 1. In the middle ring is the market. The market is central because it is the most important part of the city and is easily accessible from the surrounding areas.

   2. The next ring consists of intensive farming and dairy. These products are closer because they are in higher demand and other products can expire.

  3. The next ring is the forest. Wood was also in high demand due to the fact that it was used for heating and cooking. And it had this location because the wood was very heavy and difficult to transport.

  4. The penultimate ring was used for extensive cultivation as bread grains. These are lighter, which makes them easier to transport and cost less money.

  5. And finally, the final outer ring is used for livestock. Animals can be born and raised further from the market because they transport themselves, which means there is no need for fuel, saving the farmer money.

Explanation:  

Von Thunen in his theory mentioned the importance of geographical distribution in agriculture, in which merchant farmers could take advantage of the conditions of the land. For Thunen the distribution and location of the land in an appropriate way would generate the best benefits, for it must organize from the most essential and difficult to transport to the easiest to transport, in this way, for Von Thunen the rings in the markets should be formed.

   

<em>I hope this information can help you.</em>

5 0
3 years ago
Bitstar global inc. is a soft-drink manufacturing company. kelly, the production manager, works with a human resource consultant
Ludmilka [50]
<span>machine. She uses a simulative approach to increase the effectiveness and efficiency. If Kelly is at the output stage of the process, then she is identifying the inputs utilized in the process for measuring the productivity.</span>
6 0
3 years ago
How do you delete awnsers that people post
Natali [406]

You have to be a moderator. That's all I know.

5 0
3 years ago
Read 2 more answers
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