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TEA [102]
3 years ago
13

Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 10

%. If the Fed buys $10 million worth of government securities from the public, the change in the money supply will be________$.
Business
1 answer:
malfutka [58]3 years ago
6 0

Answer:

A) -$10 million.

Explanation:

44) Multiplier = 1 / Reserve ratio = 1 / 0.10 = 10

Since Fed is selling securities to the public, money supply shrinks with the multiplier effect. That is, money supply is reduced by (-) 10 times .

Chang in the money supply will be: $10 million x (-10) = -$100 million

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Universal Containers email policy requires that all email traffic remain within its firewall. Currently, the company has 200 sup
allsm [11]

Answer:

Email to case

Explanation:

Email to case is an innovative platform that allows a company keep all emails within their network firewall.

It allows receipt of emails larger than 25mb from customers.

When customer's emails are received, they are turned into cases that can be tracked for easy resolution.

This will be a good solution for Universal Containers as it solves the problem of having emails within its firewall, and provides a way for the 200 support agents resolve customer challenges through cases generated.

8 0
3 years ago
A stockbroker predicts whether a stock will go up or down by tossing a coin and so has a 50% chance of making a correct predicti
kolezko [41]

Answer:

A skilled  broker will be right at  60% of time compared to 50%

Explanation:

Solution

Given that:

Now,

Let X  be represented as = number of correct predictions/outcomes

X foll binomial distribution with n = 3 and p = 0.5 for broker who use a toss coin

Thus,

P(X = 3) = p^3 = 0.5^3 which gives us  = 0.125

So,

For a skilled broker, Y goes with the binomial distribution with n = 3 and p is = 0.6

Then,

P(Y = 3) = 0.6^3 = 0.216

We can therefore conclude who is skilled broker by making large number of observations

Hence, we say that a skilled broker will be correct 60% of time compared to 50% .

8 0
3 years ago
Bravo inc owns 20,000 of the 40,000 outstanding shares of bello, inc. common stock. During 2021, Bello earns 1,200,000 and pays
stealth61 [152]

Answer:

the  ending balance of the investment account is $870,000

Explanation:

The computation of the ending balance of the investment account is shown below:

= Beginning balane + [(earns - dividend) × (owns shares ÷total shares)]

= $750,000 + [($1,200,000 - $960,000) × (20,000 ÷ 40,000)]

= $750,000 + $120,000

= $870,000

Hence, the  ending balance of the investment account is $870,000

4 0
3 years ago
How long would it take for the price level to double if inflation persisted at the following percentages?
Alekssandra [29.7K]

Answer:

inflation rate = 17.5 percent per year  ⇒ it will take 4 years to double

inflation rate =  35 percent per year  ⇒ it will take 2 years to double

inflation rate =  3.5 percent per year ⇒ it will take 20 years to double

Explanation:

we can use the rule of 70 to determine the amount of time it would take the general price level to double.

the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.

70 / 17.5 =  4 years

70 / 35 =  2 years

70 /  3.5 = 20 years  

3 0
4 years ago
Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0
3 years ago
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