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musickatia [10]
3 years ago
8

If the reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency, when the f

ed sells $10 million dollars of bonds to the public, bank reserves increase by $1 million and the money supply eventually increases by $10 million.
Business
1 answer:
tigry1 [53]3 years ago
5 0
<span>1. Suppose Oscar withdraws $100 from his checking account and deposits it into his savings account. This
transaction causes M1 to 
A. Increase by $100 and M2 to remain the same.
B. Decrease by $100 and M2 to remain the same.
C. Decrease by $100 and M2 to increase by $100.
D. Remain the same and M2 to increase by $100</span>B<span>2. Suppose Megan withdraws $75 from her savings account and deposits it into her checking account. This
transaction causes M1 to 
A. Increase by $75 and M2 to remain the same.
B. Decrease by $75 and M2 to remain the same.
C. Increase by $75 and M2 to decrease by $75.
D. Remain the same and M2 to increase by $75.</span>A<span>3. Suppose Jared takes $200 from his savings account and holds it as cash. The immediate result of this
transaction is that M2 
A. Increases by $200 and M1 remains the same.
B. Decreases by $200 and M1 remains the same.
C. And M1 do not change.
D. Remains the same and M1 increases by $200.</span>D<span>4. A single bank with $10,000 of reserves and a reserve ratio of 25 percent could support total transactions
account balances of at most 
A. $10,000.
B. $5,000.
C. $40,000.
D. $25,000.</span>C<span>5. A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions
account balances of at most 
A. $400,000.
B. $1,000.
C. $100,000.
D. $20,000.</span>A<span>6. Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into
the bank, then initially, ceteris paribus, 
A. This bank can increase its loans by $5,000.
B. This bank can increase its loans by $4,000.
C. Total reserves will increase by $4,000.
D. Required reserves will increase by $5,000.</span>B<span>7. Initially a bank has a required reserve ratio of 10 percent and no excess reserves. If $1,000 is deposited into
the bank, then, ceteris paribus, 
A. This bank can increase its loans by $900.
B. This bank can increase its loans by $1,000.
C. Total reserves will increase by $900.
D. Required reserves will increase by $1,000.</span>A<span>8. If total reserves for a bank are $12,000, excess reserves are $2,000, and demand deposits are $100,000, the
money multiplier must be 
A. 20.
B. 15.
C. 10.
D. 5</span>C<span>9. If the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required
reserve ratio of 10 percent, the banking system can increase the volume of loans by a maximum of 
A. $5,000.
B. $50,000.
C. $85,000.
D. $100,000.</span>A<span>10. Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in
response to a $1 billion increase in excess reserves for the whole banking system? 
A. $1 billion.
B. $150 million.
C. $15 billion.
D. $6.67 billion.</span><span>B</span>
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Hommie Delicacies produces two products (Orapine and Banango) from a joint process. The joint cost of production is GH¢80,000. F
SVEN [57.7K]

Answer:

Explanation:

Joint cost = 80,000

Orapine

cost of 5000 at 20 = 100,000

Incremental Cost of further processing =20,000

Incremental revenue = 5000* (25-20)= 25,000

Incremental income                                   5,000

Banango

cost of 10000 at 15 = 150,000

Incremental cost of further processing =  20,000

Incremental revenue = 10,000*(16-15) = 10,000

Incremental income = (10,000) loss

If  Orapine is processed further , there will be an incremental income of 5,000 compared to Banango that will bring an incremental loss of 10,00 if processed further.

Based on this , it is advised that Orapine be processed further while Banango is not

3 0
3 years ago
Tony's marginal income tax rate is 24%, and he pays FICA tax on his entire salary (7.65%). Tony's employer offered him a choice
Vlad [161]

Answer: The fringe benefit is worth $182 more than the additional salary.

Explanation:

The Fringe benefit is valued at $3,600.

The additional salary after taxes is:

= 5,000 - (5,000 * 24%) - (5,000 * 7.65%)

= 5,000 - 1,200 - 382.5

= $3,418

The Fringe benefit is worth more than the salary by:

= 3,600 - 3,418

= $182

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8 0
3 years ago
Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sol
AysviL [449]

Answer:

Charu Khanna

The Net capital loss is:

= $2,000.

Explanation:

a) Stock Transactions and Data during 2019:

Stock                                  Date      Date Sold  Sales Price ($) Cost Basis ($)

                                      Purchased

4,000 shares Green Co. 06/04/07 08/05/19       12,000              3,000

500 shares Gold Co.        02/12/17 09/05/19      54,000            62,000

5,000 shares Blue Co.   02/04/08  10/08/19       18,000            22,000

100 shares Orange Co.     11/15/18   07/12/19       19,000            18,000

Total                                                                   $103,000       $105,000

Net capital loss:

Long-term capital loss = $3,000

Short-term capital gain = $1,000

Net capital loss =            $2,000 ($3,000 - $1,000)

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2 years ago
Marla, the new accountant, impressed the interview committee because she graduated at the top of her class. the department super
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This is the Halo Effect
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How do individuals contribute to the circular flow of economic activity?A) Businesses buy goods and services from individuals.B)
ZanzabumX [31]

Answer:

C

Explanation:

Individuals provide labor for factor markets and buy goods in product markets.

Market Activity is performed as two cycles moving in opposite directions. In one direction, there is a flow of goods and services from individuals to businesses and back again. This concept is simplified in that as laborers, we go to work to make things or provide services that people want.

6 0
3 years ago
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