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
mote1985 [20]
3 years ago
10

n the money creation process, the simple money multiplier assumes that banks hold no excess reserves. What is the consequence of

a bank holding excess reserves
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer: The simple money multiplier becomes smaller as less money is loaned out

Explanation:

In the money creation process, the simple money multiplier assumes that thee are no excess reserves that are held by the banks and that there are no currency being held by the public.

The consequence of a bank holding excess reserves will be that the simple money multiplier will become smaller when less money is being loaned out. There will be less money in circulation when excess reserves are held by the banks. This will result in the money multiplier to be smaller.

You might be interested in
What is the maximum age a taxpayer with no qualifying children may be at the end of the year and still qualify for the earned in
MatroZZZ [7]

Answer:

The correct answer is: 65 years old.

Explanation:

The Earned Income Tax Credit (<em>EITC</em>) is provided to people with low income. The amount of that income and the number of people within their household will determine the amount of the tax credit. People with no children can also be eligible for the credit until they are 65 years old by the end of the tax period.

8 0
3 years ago
Which would be the most likely target market for a new brand of high-end athletic shoes?
qwelly [4]

Answer:

Dedicated athletes, like a marathon runners

Explanation:

6 0
3 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
sertanlavr [38]

Answer:

$9.687

Explanation:

Given:

Year 3 dividend = $1.00

Year4&5 growth rate = 17%

Constant rate = 7%

Required return rate = 16%

Year 4 dividend wil be:

D4 = 1.00 * 1+growth rate

= 1.00 * (1+0.17)

= $1.17

Year 5 dividend=

D5 = $1.17 * (1+0.17)

= $1.3689

Value of stock after year 5 will be given as:

\frac{D5 * (1+growth rate)}{required return - growth rate}

= \frac{1.3689*(1+0.07)}{0.16-0.07}

= $16.2747

For the current value of stock, we have:

Cv= Fd* Pv of discounting factor

Where Cv = current value of stock

Fd = future dividend

Pv = Present value of discounting factor

Therefore,

C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}

=$9.6871382455

≈ $9.687

The value of stock today =

$9.687

8 0
3 years ago
A twenty-acre park was created to give residents a place to hike, bike, and enjoy other recreational activities. Kathy was hired
TiliK225 [7]

Answer:

b

Explanation:

8 0
2 years ago
Read 2 more answers
How does market research give direction to advertising?
abruzzese [7]

Answer:

it will help you to know what the producer wants

Explanation:

you understand that if you will talk about the product in the market or you will research on what is in the market so you are able to know the idea or you will know what they want in the market,so advertising also give direction to business

8 0
2 years ago
Other questions:
  • As the role of coach, the supervisor is expected to:
    14·1 answer
  • Akeel, a salesperson at sensations inc., attended a regional sales meeting, where he was more of a listener than a participant.
    11·1 answer
  • Annual demand for a product is 40,000 units. The product is used at a constant rate over the 365 days the company is open every
    9·1 answer
  • A business may explore the advantages of​ licensing, franchising, management​ contracts, and turnkey projects. After businesses
    13·1 answer
  • Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of tran
    9·1 answer
  • You find a way to lower your production costs. now your marginal cost of making a cookie is only 25 cents. at the market price o
    14·1 answer
  • Why do you think the feudal system disappeared over the course of time? Best answer will be mark braniest
    12·1 answer
  • A company that makes fireplace mantles uses computer modeling in order to ensure that the process used makes the most efficient
    15·1 answer
  • e Department of Traffic Security of a city is considering the purchase of a new drone for aerial surveillance of traffic on its
    5·1 answer
  • Consider the following: Farmer Smith bought seed and fertilizer for $100. He grew wheat that he sold to the Wander Bread Company
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!