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shepuryov [24]
3 years ago
7

Assume that the required reserve ratio is set at 0.125 . What is the value of the money (deposit) multiplier

Business
1 answer:
qwelly [4]3 years ago
5 0

Answer:

8

Explanation:

the money multiplier = 1 / required reserve ratio = 1 / 0.125 = 8

The money multiplier refers to the capacity of the banking system to "create" money, e.g. John deposits $1,000 dollars in bank A. Then bank A lends $875 to Frank which buys a bike from Sarah. Then Sarah deposits the $875 in bank B, which in turn borrows $765.63 to Anne. Anne pays her rent to Adam, who deposits the money in bank C and then bank C lends $669.92 to Joe, and ...

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The company stops the disputed behavior but does not admit that it broke the law
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The appropriate response is Consent Order. Once the request is fixed it must be changed by shared assent of the now ex and spouse or if another judge chooses it can be changed after an application is made to the court, one individual can't change the terms of the request, it must be by common assent. For most by far of individuals, assent orders are last.
6 0
3 years ago
Axle Corporation acquires​ 100% of Drexel​ Corporation's stock from​ Drexel's shareholders for​ $500,000 cash. Drexel Corporatio
kolbaska11 [484]

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$500,000 Axle​ Corporation's basis in the Drexel Corporation stock.

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3 years ago
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The yield to maturity on a discount bond is: equal to both the coupon rate and the current yield. equal to the current yield but
dlinn [17]

Answer:

greater than both the current yield and the coupon rate.

Explanation:

A discount bond is a bond that at the point of issuance, it's less than its face or par value.

When a bond is trading for less than its face value in the market, it's known as a discount bond.

The yield to maturity on a discount bond is greater than both the current yield and the coupon rate. This simply means that the coupon rate is usually lower than the yield to maturity of the discount bond.

Additionally, the yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

For instance, when a bond is issued at a par or face value of $5,000, at maturity the investor would be paid $5,000. But because bonds are being sold before its maturity, it would trade below its face value.

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8 0
3 years ago
Burnett Corp. pays a constant $8.25 dividend on its stock. The company will maintain this dividend for the next 13 years and wil
Valentin [98]

Answer:

$55.134

Explanation:

Given

dividend paid on its stock = $8.25

Duration is next 13 years

P0 = dividend on its stock × (PVIFA of return on this stock,years)

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Therefore

P0 = $8.25 × (PVIFA11.2%,13)

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6 0
3 years ago
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inn [45]

Answer: 200 units

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Beginning inventory                                      80 units.

Company Purchases                                     <u>480 units</u>

Total                                                                560 units

Sales                                                               <u>(360 units)</u>

Ending Inventory                                            200 units

200 units remain in Ending inventory.

7 0
2 years ago
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