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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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Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

  • 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
  • 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
  • 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
  • total expected return = 9.2%
6 0
3 years ago
Suppose that in 1969, the U.S. economy was operating close to potential. The budget deficit experienced by the United States in
Nataly [62]

Answer: primarily cyclical deficit

Explanation:

Budget deficit occurs when the government expenditure for a certain year is more than the revenue the government makes.

Since the the United States economy was operating close to potential. The budget deficit experienced by the United States in 1969 was primarily cyclical deficit.

3 0
3 years ago
When you are writing to reject a job​ application, which of these is considered the BEST​ strategy?
Hunter-Best [27]

Answer:

D. Use an indirect approach to soften the blow.

Explanation:

Even though there really is no perfect method or strategy when rejecting a job application, many companies usually agree on using an indirect approach to soften the blow. This saves the receiver of the rejection from the pain that they may otherwise feel from a direct rejection, since a direct approach will make them feel as though the rejection is completely their fault.

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

3 0
3 years ago
Kayleigh is looking over a number of material requisition slips from her employees. She has to sign off on each request after re
dedylja [7]

Answer:

B. No, approval by an individual other than the requestor establishes greater accountability over inventory.

Explanation:

This step is required as it will ensure control over inventory usage.

3 0
3 years ago
A __________ is a written document that details the business idea, the target market and the business's competitive advantage, f
Alina [70]

Answer:

business plan

Explanation:

A<u> business plan</u> is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

7 0
4 years ago
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