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LenKa [72]
3 years ago
6

Suppose the fed sells​ $100 of government securities. if the desired reserve ratio is 20 percent and there is no currency​ drain

, then the quantity of money
Business
1 answer:
Julli [10]3 years ago
5 0

The reserve ratio is the part of a depositor ’s balances that banks must have on hand as cash.

This is a requirement determined by Federal Reserve and this affects the money supply in a country at any given time.

<span>If the desired reserve ratio is 20%, and the FED sold $100 of government and there is no currency drain, then the quantity or supply of money will decrease. </span>

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The aggregate quantity of goods and services demanded changes as the price level rises because
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Answer:

a.

Explanation:

The aggregate quantity of goods and services demanded changes as the price level rises because real wealth falls causing interest rates to rise, and this in term causes the dollar to appreciate since the interest rates are for products and services within the country and not foreign goods or services. Which as the dollar appreciates it means that foreign goods and services will become cheaper or that their relative price will fall.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
g Brief Exercise 5-13 Bridgeport Company reported 2017 net income of $158,800. During 2017, accounts receivable increased by $18
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Answer:

16,000

Explanation:

I had this on my test

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2 years ago
Because manufacturers with jit systems produce merchandise closer to the time of sale, they can
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<span>These companies are able to reduce the inventories required to satisfy the demand of the retailers. With a JIT system, the company does not have to worry as much about waste product or overproducing, since the final item is being manufactured just before the deadline. This allows the company to run on a much tighter production schedule and lessens waste.</span>
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3 years ago
When examining whether a company has underrecorded accounts payable, each of the following ratios is helpful except:
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The answer trot his I d
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3 years ago
The following information pertains to Pernell Company's pension plan. Beginning PBO: $500,000; current service cost $50,000; dis
monitta

Answer:

= $560,000

Explanation:

Given that:

  • -Beginning PBO: 500,000
  • -Current Service Cost: 50,000
  • -Discount Rate: 6%  => interest cost = 500,000*6% = 30,000
  • -Contributions by Pernell: 40,000
  • -Benefits paid to employees 25,000
  • -Loss on PBO: 5,000

As we know that service cost; gains and losses; payments to retired employees; prior service cost; interest cost; payments to employees are factors that change the balance of the PBO

So the ending balance of the PBO will be:

Beginning PBO + Current Service Cost + Interest cost Loss on PBO -Benefits paid to employees

$500,000 + $50,000+ $30,000+$5,000-$25,000

= $560,000

4 0
2 years ago
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