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AnnZ [28]
3 years ago
6

If the reserve ratio is 15 percent, and banks do not hold excess reserves, and people hold only deposits and no currency, then w

hen the Fed sells $25.5 million worth of bonds to the public, bank reserves
A. increase by $25.5 million and the money supply eventually increases by $382.5 million.
B. decrease by $25.5 million and the money supply eventually decreases by $170 million.
C. increase by $25.5 million and the money supply eventually increases by $170 million.
D. decrease by $25.5 million and the money supply eventually decreases by $382.5 million.
Business
1 answer:
8090 [49]3 years ago
7 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Required reserve ratio = 15 percent

Bonds sell to public = $25.5 million

Bank reserves decreases by $25.5 million because of the purchasing of bonds from the Fed.

Money multiplier:

= 1/Required reserve ratio

= 1/0.15

= 6.67

Therefore, the money supply decreases by:

= Money multiplier × $25.5 million

= 6.67 × $25.5 million

= $170 million

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At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubt
olasank [31]

Answer and Explanation:

The journal entries are shown below:

a. Account receivable Dr $864,300

          To Sales revenue  $864,300

(Being the sales revenue is recorded)        

Cash Dr $687,610

        To Account receivable $687,610

(Being the collections is recorded)

2. Allowance for doubtful debts $6,804

        To Account receivable $6,804

(Being the written off amount is recorded)

3.  Account receivable Dr $3,219

        To Allowance for doubtful debts $3,219

(Being the previous written off amount is recorded)

Cash Dr $3,219

     To Account receivable $3,219

(Being the recovery is recorded)

4. Bad debt expense $18,075

        To Allowance for doubtful debts $18,075

(Being the bad debt expense is recorded)

The computation is shown below:

= $24,000 - $9,510 + $6,804 - $3,219

= $18,075

Only these entries are recorded

3 0
3 years ago
Mi familia y yo fuimo al cine y noscoperamo papra la entrada que fue $245 si mi hermana dio 1/5 del total mientras yo di 4/10 y
Blizzard [7]

Answer: (55 x 30) + 245 = 1895

Explanation:

translation from spanish to english: My family and I went to the movies and we collected for the entrance that was $ 245 if my sister gave 1/5 of the total while I gave 4/10 and my father gave the rest how much money each one contributed.

Spanish:

la parte superior es la respuesta, espero que esté bien.

english:

the top is the answer, hope it was right.

7 0
2 years ago
What happens when a single seller market develops into a competitive market?
Luden [163]

Answer:

Introduce new or better products to existing markets. Continue development on your existing products, like your bestsellers, in order to renew your commitment to current customers to the best of your abilities. Through product development, you can expect to outperform competitors and keep your customers happy. Explore Partnership Opportunities

6 0
2 years ago
Company X has beta = 1.6, while Company Y's beta = 0.7. The risk-free rate is 7%, and the required rate of return on an average
Kaylis [27]

Answer:

a. 5.40%

Explanation:

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Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%

Re stock Y = 8%  + (0.7 x 6%) = 8% + 4.2% = 12.2%

The difference between the required rate of return = 17.6% - 12.2% = 5.4%

4 0
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Which is a correct statement regarding sandwich prices,<br><br> based on the histogram?
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Which is a correct statement regarding sandwich prices, based on the histogram? The distribution of sandwich prices is skewed left.

i hope this helps<3 :)

4 0
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