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Airida [17]
3 years ago
9

What would be the amount of deposits D, given that the monetary base MB $750 billion, the required reserve rate (r) -0.1, the ex

cess reserve rate (ERID) 0.005, and non-bank currency to deposits (CID) equaled 1.2?
Business
1 answer:
Thepotemich [5.8K]3 years ago
4 0

Answer:

$574.71 billion.

Explanation:

The formula for calculating amount of deposits is as follows:

D= \frac{1}{(C/D)+rr+(ER/D)}\times MB

where,

D = Deposits

rr = required reserve rate

ER/D = excess reserve rate

C/D = non-bank currency to deposits

D= \frac{1}{(1.2)+0.1+(0.005)}\times 750

D = 574.712644

D = 574.71

Therefore,  the amount of deposits is $574.71 billion.

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If the government and Central Bank don't use economic policy, what could happen?
Bumek [7]

Answer: D. All of the above

Explanation:

Economic policies are the policies athat are out in place by the government in order to control economic activities.

These policies are used to reduce inflation, provide employment opportunities, increase standard of living, encourage economic growth etc.

If the government and Central Bank don't use economic policy, that s cs lead to inflation, increase in unemployment and fall in the GDP.

Therefore, the answer is option D

4 0
3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $13.00
aleksandr82 [10.1K]

Answer:

Cost difference= $64,808 cost decrease

Explanation:

Giving the following information:

Purchasing price= $13

Make in-house:

Variable cost per unit= $11

Fixed cost per unit= $9

Production in units= 32,404

<u>To determine whether it is more convenient to make the part in-house or buy it, we need to take into account only the variable cost per unit. We leave out of the decision the fixed costs because they remain constant in both options.</u>

Buy= 32,404*13= $421,252

Make= 32,404*11= $356,444

Cost difference= $64,808 decrease

3 0
3 years ago
What is financial accounting??<br><br>Any one help me ​
AfilCa [17]

Answer:

Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time. ... Work opportunities for a financial accountant can be found in both the public and private sectors.

5 0
3 years ago
Read 2 more answers
ABO purchased a truck at the beginning of 2018 for
valentina_108 [34]

Answer:

B. Debit Loss $5,000.

Explanation:

depreciation per year under straigh-line method:

\frac{cost- salvage}{useful \: life}

\frac{140,000 - 20,000}{6}

depreciation per year: 20,000

book value at 2019 year-end:

140,000 - 20,000 x 2 = 100,000

disposal value:                95,000

loss for                               5,000

loss at diposal:                      5,000  debit

cash                                      95,000 debit

accumulated depreciation  40,000 debit

                truck                                       140,000 credit

3 0
4 years ago
Garcia company has 10,000 units of its product that were produced last year at a total cost of $150,000. the units were damaged
timurjin [86]

Answer and Explanation:

The computation of the incremental net income is shown below:

<u>Particulars    Sell          Process Further      Incremental Net income </u>

Sales        $20,000.00    $50,000.00        $30,000.00

          (10,000 units × $2)  (10,000 × $5)

Less:

Additional

Processing cost                 $18,000.00          $18,000.00

Total        $20,000.00      $32,000.00          $12,000.00

4 0
3 years ago
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