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Misha Larkins [42]
4 years ago
15

Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking

deposits and that banks hold no excess reserves and households hold no currency
a. What is the money multiplier? What is the money supply?
b. If the Fed now raises required reserves to 20 percent of deposits, what are the change in reserves and the change in the money supply?
Business
1 answer:
Zepler [3.9K]4 years ago
5 0

Answer:

a. What is the money multiplier? What is the money supply?

  • the money multiplier = 1 / reserve ratio = 1 / 10% = 10
  • the money supply = $100 billion x 10 = $1,000 billion

b. If the Fed now raises required reserves to 20 percent of deposits, what are the change in reserves and the change in the money supply?

  • the money multiplier = 1 / 20% = 5
  • money supply = $100 billion x 5 = $500 billion
  • the money supply will decrease by = $1,000 billion - $500 billion = $500 billion

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Fiesta28 [93]

Answer: $13.25

Explanation:

From the question, we are informed that an oral auction has bidders willing to pay $4, $6, $9, $12, $13, and $15 for an item.

Based on the above scenario, the winning bidder will pay a little more than $13 or $13.25. This is because the bidder with the highest pay is willing to pay $15 but since the next person is willing to pay $13, that means the next bidder will price it at an amount that is a little bit above $13 which is $13.25.

5 0
4 years ago
RAK Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.7 percent coupon b
Hatshy [7]

Answer:

5.31%

Explanation:

FV = 1000

Coupon rate = 5.7%

No of compound = 2

Interest per period = $28.5

Bond price = $1048

No of years to maturity = 20

No of compounding till maturity = 40

Coupon rate set on new bonds = Rate(Nper, PMT, -PV, FV) * 2

Coupon rate set on new bonds = Rate(40, 28.5, -1048, 1000) * 2

Coupon rate set on new bonds = 0.02655 * 2

Coupon rate set on new bonds = 0.0531

Coupon rate set on new bonds = 5.31%

7 0
3 years ago
You own an e-commerce site that sells skis and related winter sports gear. You gather your team of six employees and ask them to
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The great ideas for improving engagement on the website can be tried, EXCEPT Sponsoring a giveaway for a free pair of skis.

Instead of sponsoring a giveaway for a free pair of skis, your e-commerce site should employ integrated marketing.

<h3>What is integrated marketing?</h3>

Integrated marketing involves aligning all marketing tactics with a unified, customer-focused promotional messaging, enabling a consistent customer experience with your sports gear brand.

The advantages of integrated marketing include increasing:

  • Brand awareness
  • Brand loyalty
  • Sales volume and revenue.

Thus, the great ideas for improving engagement on the website can be tried, EXCEPT Sponsoring a giveaway for a free pair of skis.

Learn more about integrated marketing at brainly.com/question/9696745

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3 years ago
Kana is a single wage earner with no dependents and taxable income of $205,000 in 2018. Her 2017 taxable income was $155,000 and
garri49 [273]

Answer:

$47439.50

Explanation:

For a single tax payer if your taxable income range is $200,000 - $500,000 then your income tax is $45,689.50 + 35% of amount over $200,000 of taxable income.

Income tax liability = $45689.50+{ 205000-200000)×35%}

$45689.50+(5000×35/100)

$45689.50+(5000×0.35)

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= $47439.50

The income tax liability will be $47439.50

5 0
3 years ago
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larisa [96]

Answer:

the use of supply chain partners to provide products or services.

Explanation:

In Business management, outsourcing can be defined as a process which involves an agreement between two companies that allows for the provision of services or job functions by another.

When a company is outsourced, it engages the service of another company (third-party) to perform some of its duties rather than the use of an in-house department or employees to handle them. The outsourcing firm is saddled with the responsibility of physically distributing the goods or services of the outsourced company.

Hence, outsourcing refers to the use of supply chain partners to provide products or services.

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3 years ago
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