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cestrela7 [59]
3 years ago
14

After saving money in his piggy bank for three years, Omar decided to deposit $2,500 of the money in the local bank. If the bank

were fully loaned out and the reserve requirement was 20 percent, then the change in the dollar value of the total money supply would be __________.
Business
1 answer:
NeTakaya3 years ago
5 0

Answer:

The money supply will increase by 12,500 dollars

Explanation:

when the money is deposited the loan will make the required reveneus and start loans for the remained over and over

The multiplier effect will be 1/required reserve ratio: 1/0.2 = 5

we multiply 2,500 dollars times the money multiplier of 5

total icnrease inthe money supply: 2,500 x 5 = 12,500

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on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses
MatroZZZ [7]

Answer:

Misrepresentation.

Explanation:

In this scenario, on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses or claims. The company is guilty of misrepresentation.

Misrepresentation can be defined as an untrue or misleading statement of fact made by a party to an individual or group of people to deceitfully lure or induce them to go into a contract. A company stating in its advert that it has funds in its possession but in the true sense or actual fact do not have the funds for payment of losses or claims; such a company is engaging in a fraudulent act and is liable to prosecution in any court of competent jurisdiction.

8 0
3 years ago
Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premi
Tju [1.3M]

The main reason for the success of the Beats Electronics is: <u>B. it created a perception that owning its products was cool.</u>

<u>Explanation</u>:

Beats Electronics was able to outperform in the premium headphone market. They were able to out-stand from their competitive companies like JBL, Bose, Audio-Technica, Skullcandy and Sennheiser.

Beats Electronics made their customers to believe that owning their product is cool. They created a perception to the customers which made them to lead in the market.

Perception refers to the way the information is conveyed to others. Beat Electronics followed this strategy and made their customers to feel that owning their product is cool.

5 0
3 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
tatuchka [14]

Answer and Explanation:

Economy is divided into two main fields: <em>Microeconomics and Macroeconomics</em>. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:

A) <em>The effect of government regulation on a monopolist's production decisions (Macroeconomics). </em>

B) <em>The optimal interest rate for the Federal Reserve to target (Macroeconomics). </em>

C) <em>The government's decision on how much to spend on public projects (Macroeconomics).</em>

4 0
3 years ago
The journal entry for the purchase of inventory on account using the perpetual inventory system is:.
Solnce55 [7]

The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.

<h3>What is a journal entry?</h3>

It should be noted that a journal entry is used to record the financial activities of a company.

In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
The main function of the Federal Reserve System is to:
PolarNik [594]

Answer:

D. Serve as the fiscal agent for the Federal government

Explanation:

The Federal Reserve System (FRS) is the central bank of the United States. FRS regulates the U.S. monetary and financial system.

The functions of Federal Reserve System includes;

1. conducting the nation's monetary policy

2. regulating banking institutions

3. monitoring and protecting the credit rights of consumers

4. maintaining the stability of the financial system

5. providing financial services to the U.S. government.

4 0
3 years ago
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