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
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

You might be interested in
A group of college students start a dog-walking service. At the end of the first month, they meet to discuss their business perf
Daniel [21]

Answer:

B. In considering our costs, we need to include what we could have earned by working at part-time jobs instead.

Explanation:

When the group of college students include, in their analysis of costs, what they could have earned by working at part-time jobs instead, they are including the opportunity cost.

The opportunity cost is what is given up to do something: the cost of not choosing an alternative.

Including opportunity costs in their cost-benefit analysis reveals sound economic thinking.

5 0
3 years ago
4. Tim moves to a different state and buys a house in his new city. His new house is bigger than the apartment he lived in befor
Rufina [12.5K]

Answer:

Property tax is progressive

Sales Tax is regressive

A progressive tax is one that takes a higher proportion of revenue from high-income people than it does from low-income people. A regressive tax is one that takes a higher percentage of low-income people's income than it does from high-income people.

Explanation:

3 0
2 years ago
As an eighth grader, Marliss wins an art competition, and her prize is one thousand dollars. She wants to invest the money for h
diamong [38]
Marliss will want to invest her money in a savings bond to help her save money for college. The correct answer is A. 
8 0
3 years ago
What is the price​ level? The price level is​ ______. A. the average level of prices paid by urban consumers for all goods exclu
8_murik_8 [283]

Answer:

Price Level is B. The average level of prices

Explanation:

Price level is the average of current prices across the entire spectrum of goods and services produced in the economy.

Price level refers to the price or cost of a good, service, or security in the economy.

Reference: Kenton, Will. “Reading Into Price Levels.” Investopedia, Investopedia, 27 Sept. 2019

7 0
2 years ago
Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.
kogti [31]

Answer: Please see the required journals below:

Mar. 17:

Debit Allowance for doubtful accounts $1,000

Credit Accounts receivable $1,000

July 29:

Debit Cash $1,000

Credit Bad debt recovery (income statement) $1,000

Explanation: On March 17, when $275 was received from Shawn and the remaining balance of $1,000 was written off, the allowance for doubtful accounts has to be debited since the company adopts the allowance method of accounting for uncollectible receivables. Note that the allowance account would have the required buffer to take care of this debit. Similarly, when the recovery was made, cash would be debited then the credit would default to income statement.

3 0
3 years ago
Other questions:
  • Coca Cola embarked on a program to replenish all of the water it uses in drinks and made good on its promise five years early th
    9·1 answer
  • The group of accounting educators who perform research to determine the possible effects on financial reporting and the economy,
    5·1 answer
  • Assume that the required reserve ratio is 5 percent. If a commercial bank has $2 million cash in its vault, $1 million in govern
    12·1 answer
  • A for-profit institution that works with large companies and corporations to manage deposits, loans, and investments is known as
    7·1 answer
  • Which of the following students is most likely to receive a merit-based scholarship?
    14·1 answer
  • The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. the terms of trade are still 3 puzzles for
    5·1 answer
  • A project with an initial investment of $449,300 will generate equal annual cash flows over its 10-year life. The project has a
    10·1 answer
  • From this cartoon you can infer that the cartoonist:______. A) believes that England and Japan will soon be at war. B) opposes U
    8·1 answer
  • Suppose you make 30 annual investments in a fund that pays 3% compounded annually. If your first deposit is $6,000 and each succ
    5·2 answers
  • What is CUSTOMER VALUE? How it can be created? Discuss.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!