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SVETLANKA909090 [29]
4 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]4 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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If the total value of goods exported from a nation is less than the total value of goods imported to the nation, the nation is experiencing a Trade deficit.

The difference between imports and exports is known as the trade deficit or negative balance of trade (BOT). A trade deficit develops when an economy spends more on imports than on exports. It can be computed for various commodities and services as well as for cross-border transactions.

The difference between the monetary value of a country's exports and imports over a specific time period is known as the balance of trade deficit, commercial balance, or net exports. A distinction between a trade balance for products and one for services is occasionally drawn.

Learn more about trade deficit here

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8 0
2 years ago
Question 6
Scilla [17]

Answer:

C)refusing to work until certain demands are met.

Explanation:

The idea behind a strike is to remind the employer or owner of the company that workers are a key part of the production. Strikes are an effective form of protest because they can paralyze a factory or a firm.

Strikes are usually more effective when the workers cannot be easily replaced by the employer.

7 0
3 years ago
a client undergoes personalility changes and has difficulty with voluntary activities. the client is diagnosed with a brain tumo
Shalnov [3]

Answer:

3. Frontal Lobe

Explanation:

Based on the information provided within the question it can be said that in this scenario the client is diagnosed with brain tumor which the nurse indicates as being located in the Frontal Lobe. The nurse knows this immediately due to the fact that the Frontal Lobe is the part of the brain that concerns personality, behavior, emotions, and intellectual function. Since the client has undergone personality changes then it can be deduced that the tumor is located in the Frontal Lobe.

7 0
3 years ago
Unemployment insurance makes workers _____ likely to negotiate for job security when searching for a job and _____ likely to hav
vlada-n [284]

Unemployment insurance makes workers less likely to negotiate for job security when searching for a job and more likely to have a long job search.

Explanation:

Unemployment insurance is a compensation protection where people lost their jobs and follow all eligibility criteria without blame.

Unemployment insurance Workers who are self-employed and willingly fired do not have a career security policy and have to use discretionary funds to cover cases where there is no work available. State governments pay a jobless insurance

Unemployment insurance supports unemployed workers actively seeking work with cash scholarships. The Federal Unemployment Tax Act (FUTA) and state employment programs offer benefits for qualifying unemployed workers. There was a misunderstanding. Most employers pay FUTA tax on federal and state unemployment.

7 0
3 years ago
From past records it is known that 10% of items from a production line are defective. If two items are selected at random, what
nadya68 [22]

Answer:

0.2

Explanation:

The Probability distribution is the function which describes the likelihood of possible values assuming a random variable. The 10% of the items from the production line are assumed to be defective. There is a sample selection of 2 items. The probability that one of the item among the selected sample of two items is found defective is 0.2 (2 items sample *10%)

7 0
3 years ago
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