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shepuryov [24]
2 years ago
10

Given no cash leakage and zero excess reserves held by banks, if reserves increase by $8 billion and the required reserve ratio

is 9 percent, what is the resulting change in the money supply?
Business
1 answer:
Dimas [21]2 years ago
7 0

Answer:

The answer is $88,880,000

Explanation:

Multiplier effect = 1 / required reserve ratio

Required reserve ratio = 9 percent

Multiplier effect is therefore;

1/0.09

=11.11

Change is money supply is increase in reserve multiplied by multiplier effect

Increment in reserve = $8milion

11.11 x 8million

=$88,880,000

So, resulting change in the money supply is $88,880,000

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Vanyuwa [196]

Answer:

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Explanation:

Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.

We will use following formula to calculate the impact

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5% = Real interest rate + 6%

Real interest rate = 5% - 6% = -1%

The deposited amount will be decreased by 1%.

Deposit value = $200,000 x ( 1 - 1% ) = $198,000

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Answer:

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Explanation:

The external environment of an organisation represents the factors outside the environment that is capable  of influencing  the decision of the organisation.  It consists of the outside factors that influences the organisation.  e.g social cultural, political, economic, technological  factors among others.

One of these factors is the Political/ Legal factor:

The political / legal factor focuses on the influence of government on business organisations. It reviews how government laws, policies, and rules affects the operation of business. The rules and regulations or policies put in place by the government has the capacity to influence the business decision.

In the case of ACME global hiring a director of safety, they are doing so in other to comply to the occupational safety and Health Act that is most definitely enacted by the government.

Therefore we can say that  the action of ACME global represent the influence of  Government  in the external environment of an organisation

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2 years ago
Help ASAP Plz i have 3mins left thx!!!
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AleksandrR [38]

Answer:

d)Tier 2

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