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beks73 [17]
3 years ago
6

Suppose the Fed decides to increase the money supply. It purchases a government bond worth $2,000 from Antonia, a private citize

n. Antonia deposits the check in her account at First National Bank. Supposed the required reserve ratio is 0.2 (20%).
(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.
(b) How much money will be generated in this banking system?
Business
1 answer:
Ivanshal [37]3 years ago
6 0

Answer:

(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.

Antonia deposits $2,000 in First National Bank.

Then First national Bank lends $1,600 to client X that uses the money to purchase something. The seller of that something deposits the money In Second Federal Bank.

Second Federal Bank then lends $1,280 to client Y that decides to use that money to pay his rent. Client Y's landlord then deposits the money in Third State Bank.

Third State Bank will then lend $1,024 to client Z...

(b) How much money will be generated in this banking system?

total money generated in the banking system = Antonia's deposit x money multiplier

money multiplier = 1 / required reserve rate = 1 / 0.2 = 5

so the total money generated = $2,000 x 5 = $10,000

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DENIUS [597]

Answer:

a.(bees OR flowers) AND dickinson

Explanation:

We defenitevily want Dickinson in our search as it is the writer we are interest on. Thus the statment should be and AND as an OR may leave it off the equation. and the system will look for bees or flowers from pretty much any writer. Dickinson is an exclusive factor.

Then, from the topoc of his poetry we look for bees or flowers at an equal interest. With findings of just one of these two concepts we are satisfied thereofre and OR statement is the way to go.

3 0
3 years ago
According to Dr. Ridel's Levels of Critical Thinking in Chapter 1, what level of critical thinking applies to your current statu
Ne4ueva [31]

Answer:

how to write it inthe morning and evening so much more than happy

8 0
2 years ago
Last year, Candle Corp had $200,000 of assets, $300,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 40%
Arisa [49]

Answer: 342,000

Explanation:

200,000 + 300,000 + 20,000 = 520,000

520,000 * 40% = 208,000

520,000 - 208,000 = 312,000

312,000 + 30,000 = 342,000

Therefor your answer is 342,000

5 0
3 years ago
The property appraisal district for Marin County has just installed new software to track residential market values for property
Mama L [17]

Answer:

Equivalent annual cost = $16,502.89

Explanation:

Equivalent annual cost = Present Value of cost / Annuity factor

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PV of additional cost  =50,000 ×1.05^(-10)=30,695.66

PV of maintenance cost

First four years= 5,000×  (1-1.05^(-4))/0.05=17,729.75

From year 5 to infinity = (8,000/0.05)× 1.05^(-4)=131,632.39

PV of maintenance cost =  17,729.75  + 131,632.396= 149,362.14

PV of costs = 150,000 + 30,695.66 + 149,362.14= 330,057.8112

Annuity factor = 1/r = 1/0.05= 20

Equivalent annual cost = 330,057.8112 /20=$16,502.89

Equivalent annual cost = $16,502.89

4 0
3 years ago
What mechanism will you putin place if your new hire is under performing, e.G, on -line job trainingg
miskamm [114]

Answer:

Job training

Explanation:

Job training is an important procedure for an employee to understand the work and their job profile. Providing job training helps to develop the career profile of an employee and also the prospective growth of the organization.

When some one in the organization performance is lower or if he or she is under performing, then the best way to increase the productivity of the employee is to provide a job training so that the employee learns and practices the work culture and work effectively for the individual growth as well as the organizational growth.

5 0
3 years ago
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