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
sdas [7]
3 years ago
7

Suppose that the banking system in Canada has a required reserve ratio of 10 percent while the banking system in the United Stat

es has a required reserve ratio of 20 percent. In which country would $100 of initial excess reserves be able to cause a larger total amount of money creation?
Business
1 answer:
Mariulka [41]3 years ago
6 0
I understand here the "money creation" to mean that the money would enter the circulation. Then the bigger amount of money creation is when less money needs to be retained by the banks!
and if the bank has to keep 10%, this is less than when it needs to keep 20% - so more money would enter the market in Canada!
You might be interested in
Should the United States pass a balanced budget amendment? Explain your answer.
ZanzabumX [31]

Answer:

There is no balanced budget provision in the U.S. Constitution, so the federal government is not required to have a balanced budget and Congress usually does not pass one. Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been enacted.

3 0
2 years ago
Read 2 more answers
How groups function and, ultimately, their effectiveness hinge on group characteristics and processes known collectively as grou
Nikitich [7]
This is too much I can’t even understand it
4 0
3 years ago
The fact that less than half of all equity fund managers beat the market in most years indicate that the stock market is _____.
hoa [83]

Answer: largely efficient

Explanation:

The fact that less than half of all equity fund managers beat the market in most years indicate that the stock market is largely efficient.

According to the strong-form hypothesis of the efficient market, when there is an efficient market, all the private and public information would be reflected in the prices of the stock.

5 0
2 years ago
A study finds that the noise from rock concerts is harmful; hence, the government imposes a $30 tax on the sale of every unit. T
Fed [463]
The correct answer is: decrease; $195; $190; $165.

A study found the noise from rock concerts to be harmful.  
To correct the externality created by the concerts, the government imposes a tax $30 on sale of each unit.  
The price of tickets was initially $190.  
After the imposition of the corrective tax, the price increased to $195.  
This increase in price will cause the demand for tickets to decrease. As a result, the number of concert tickets sold will decrease.  
The socially optimal price of the tickets is $195, as this price eliminates externalities.  
The private market price is the price which was creating externalities, in this case, it is $190.  
We can find the price received by the firms by deducting the tax amount from the new price.  
The price received by the firms is
= $195 - $30
= $165
4 0
3 years ago
In which situation is a country most likely to choose a flexible exchange rate
Yuri [45]

Answer: A.) a country has a reputation for having a strong and stable economy over time

Explanation:

I just took the test on a pex

5 0
3 years ago
Read 2 more answers
Other questions:
  • A "good," according to the UCC is all of the following EXCEPT _____.
    9·1 answer
  • A company borrowed cash from the bank and signed a 6-year note at 7% annual interest. The present value for an annuity (series o
    14·1 answer
  • What is a series of future receipts or payments discounted to their value now assuming compound interest called?
    13·1 answer
  • A yardage chain that joins two rods exactly 10 yards apart is the only type of line-to-gain equipment that shall be used during
    13·1 answer
  • The purpose of having a minimum wage is to _____. a. Educate workers about what they could be making b. Guarantee that workers a
    10·2 answers
  • Think of the products you use on a daily basis and think of the types of utility. What is a product that you use on a daily basi
    6·1 answer
  • Explain how planning involves making decisions today that will have an impact later.
    7·2 answers
  • Just want to say thank you to everyone on this app thanks to you i passed 7th grade and i know i could not of do it with out you
    14·1 answer
  • Creating a Multimedia Presentation
    5·1 answer
  • The job order cost system for a service business includes all of the following except a.materials and supplies inventory. b.cost
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!