1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masteriza [31]
3 years ago
12

In a simplified banking system in which all banks are subject to a 20 percent required reserve ratio, a $1,000 open market purch

ase by the Fed would cause the money supply to ________
Business
1 answer:
UNO [17]3 years ago
5 0

Answer:

Increase by $5000

Explanation:

The United States Central Bank or the Federal Reserve (Fed) is responsible for controlling money supply in the United States as well as the activities of the commercial banks. This control can be carried out through a particular activity known as the Open Market Operations (OPO). This activity could be in form of buying or selling securities in the market.

According to the question, the 20% required reserve ratio means the banks are to maintain 20% of their total deposits. This means that a market purchase by the Fed of $1000 will increase the money supply by 5 times the amount bought by the Fed (20% is 1/5 of 100%).

The increase is calculated as $1,000 x 5 = $5,000

You might be interested in
Failure by a promissory notes maker to pay the amount due at maturity is known as_________.
Andreas93 [3]

Failure by a promissory notes maker to pay the amount due at maturity is known as Dishonoring a note.

A dishonored note is a that  promissory note which has not been paid by a debtor in a given  reasonable amount of time.  It causes the creditor to write off the recorded revenue as a  bad debt.

With the help of promissory note, a buyer  can make a short-term commitment to pay any supplier for merchandise within the stated time period and  also at a certain interest rate.

In order to properly record a dishonored note in the financial journal of the organization one must first decide whether he is  expecting to  collect payment eventually or not.

A bill is  always considered as dishonored either by non-acceptance or by non-payment of the bill.

To know more about dishonored note here:

brainly.com/question/9220878

#SPJ4

5 0
2 years ago
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeM
mihalych1998 [28]

Answer and Explanation:

The preparation of the schedule of cash collections from sales for October, November, and December is presented below:

Particulars    October      November           December  

Sales           $58,000      $65,000           $72,000  

Cash sales   $14,500             $16,250                  $18,000

                     ($58,000 × 0.25)   ($65000 × 0.25)         ($72,000 ×.25 )

Credit sale   $43,500              $48,750                    $54,000  

                     ($58,000 - $14,500)                  

September account receivable       $35,000      

current month payment      

October credit sale:       $13,050       $30,450  

                   ($43,500 × 30%)       (43500 ×70%)  

November credit sale                 $14,625                    $34,125

                                                           ($48,750 × 30%)            (48750 × 70% )

December credit sale:                                  $16,200  

                                                                                                 ($54,000 × 30% )

Total cash collected         $62,550  $61,325                    $68,325

($14,500 + $35,000 + $13,050)   ($16,250 + $30,450 + $14,625)        ($18,000 + $34,125 + $16,200)

5 0
3 years ago
A monopolistically competitive markets:
iragen [17]

Answer:

d. may have too many or too few firms, but the government can do little to rectify the situation.

Explanation:

5 0
3 years ago
What are consumer goods and how do they allow a country to become a mdc?
Reika [66]
Consumer goods are those goods that are purchased and used by consumers. Consumer goods are not used by manufacturers to produce other goods. In essence, consumer goods are ready for use since they have been taken through the production and manufacturing. For a country to have consumer goods it must trade with other countries either to acquire raw materials or trade in consumer goods. This trade process contributes greatly towards the development of LDC economies into MDC status.
6 0
3 years ago
Turrubiates Corporation makes a product that uses a material with the following standards:
mafiozo [28]
Letter B I believe sooooo
3 0
2 years ago
Other questions:
  • Packages arrive at a facility at a rate of 30 per hour and are processed continuously at a rate of 25 per hour. The facility is
    8·1 answer
  • We call the 10 / 30 rule
    14·1 answer
  • You want to purchase a new condominium that costs $325,000. Your plan is to pay 20 percent down in cash and finance the balance
    11·1 answer
  • The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance. The follow
    9·1 answer
  • The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
    13·1 answer
  • When you are making a list of careers that interest you, you should always:
    13·2 answers
  • Which of the following results in positive benefits to individuals, the group, or the organization? a. Functional conflict b. Em
    10·2 answers
  • Carla Vista Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,0
    11·1 answer
  • A motivation for scientific management, which uses time and motion studies and work standardizations, is to:
    15·1 answer
  • How a researcher knows what is topical within his or her subject and why it is important to know that
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!