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romanna [79]
2 years ago
10

Assume that the following data describe the condition of the banking system: Total reserves $100 billion Transactions deposits $

800 billion Cash held by public $400 billion Reserve requirement 0.10 Suppose the Fed wanted to stop further lending activity. To do this, what reserve requirement should the Fed impose?
Business
1 answer:
gogolik [260]2 years ago
8 0

Answer:

12.5%

Explanation:

The computation of the reserve requirement is shown below:

We know that

Total reserves = New reserve requirement × transaction deposits

$100 billion = New reserve requirement × $800 billion

So, the New reserve requirement would be

= $100 billion ÷ $800 billion

= 0.125 or 12.5%

All other information which is given is not relevant. Hence, ignored it

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Answer: 45%

Explanation:

Standard deviation for the portfolio will be a weighted average of the standard deviations of the individual assets.

Risky asset has standard deviation of 20%. Assume the weight is x.

Treasury bills have a standard deviation of 0 as they have no risk. Assume their weight is y.

Target Standard deviation is 9%.

Formula would be:

9% = (x * 20%) + (y * 0%)

20%x = 9%

x = 9% / 20%

x = 45%

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Answer:

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Why would a party with numerous issues agree to focus on the single issue of inflation?
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5 0
2 years ago
Which of the following describes the goal that should be pursued when setting transfer prices? Minimize opportunity costs. Maxim
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Match the items below by entering the appropriate code letter in the space provided. Plant assets Book value Salvage value Strai
disa [49]

Answer:

1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES

2. Cost less accumulated depreciation. BOOK VALUE

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Explanation:

7 0
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