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baherus [9]
3 years ago
11

18. Open Market Operations and the Money Multiplier Suppose that the reserve requirement for checking deposits is 10 percent and

that banks do not hold any excess reserves. If the Fed sells $1 million of government bonds, the economy’s reserves increase by $100 million, and the money supply will increase by $9 million. Now suppose the Fed lowers the reserve requirement to 5 percent, but banks choose to hold another 5 percent of deposits as excess reserves. This will the money multiplier, and it will the money supply.

Business
1 answer:
Arlecino [84]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following image.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Examples of barriers to entry include Group of answer choices Price taking. Patents. None of the Answers are Correct. Standardiz
Genrish500 [490]

Examples of barriers to entry include Patents.

<h3>What Are Barriers to Entry? </h3>

A term used in economics and business to describe variables that can deter or make it difficult for newcomers to enter a market or industry sector and so limit competition is "barriers to entry." These might include prohibitive startup fees, bureaucratic roadblocks, or other barriers that make it difficult for new rivals to enter a market. Existing businesses win from entrance barriers because they preserve their market share and capacity to make money.

There are four main types of barriers to entry:

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Most people think of patents as temporary entry barriers put in place by the government. Patent protection, however, typically restricts access rather than blocking it. A business may enter a market that is protected as long as its product complies with a minimum standard of novelty and does not violate any active patents.

To know more about barriers to entry refer to:  brainly.com/question/12589254

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2 years ago
In the context of employee engagement, it is observed that the highly engaged employees feel a deep connection to their company.
Tju [1.3M]
Its A hope this helpsss
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3 years ago
Robert Solomon and Fernando Flores argue that trust is a choice to believe the trusted person is telling the truth, without inde
Anarel [89]

Answer:

Yes.

Explanation:

Yes, the Solomon and Flores form of trust exist in business if bluffing is an accepted rule of business negotiation because bluffing is acceptable in the business. If bluffing is an accepted rule of business negotiation then there is no trust formed between Solomon and Flores and the reason for this is that bluffing is a bad act which makes relationship worse between the partners but in this case trust exist in business due to the rule of bluffing.

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3 years ago
Buying a share of Lotus’s stock at $55 per share while simultaneously writing (selling) a call option with an exercise price of$
Vedmedyk [2.9K]

Answer and Explanation:

A. Similarities

Both covered call positions and selling put options strategies are not good reason been that they both are banking on the stock price to go up.

Differences

In a covered call, loss is unlimited on the downside and when you write a put option, the loss will be limited to the difference that exist between the exercise price and the lowest stock price ($0) and the Premiums paid are different which will in turn can tend to vary from one seller to another seller.

B. The prices of puts and calls appear to be consistent with the relationship and for the same strike price, the level of profit and loss for calls and puts seems to be unequal.

8 0
3 years ago
A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If an investor's simple annual required r
Ludmilka [50]

Answer:

Bond Price​= $1,115.58

Explanation:

Giving the following information:

Par value= $1,000

Cupon= $35

Time= 10*4= 40 quarters

Rate= 0.12/4= 0.03

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 35*{[1 - (1.03^-40)] / 0.03} + [1,000/(1.03^40)[

Bond Price​= 809.02 + 306.56

Bond Price​= $1,115.58

6 0
3 years ago
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