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elena55 [62]
3 years ago
11

Assuming a required reserve ratio of​ 10% and the Fed purchased​ $1 million worth of​ mortgage-backed securities, make use of th

e simple deposit multiplier to determine by how much checking deposits would change.
A. decrease by​ $1 million
B. increase by​ $10 million
C. decrease by​ $10 million
D. increase by​ $1 million
Business
1 answer:
Andrew [12]3 years ago
4 0

Answer:

B. Increase by $10 million.

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g An increase in demand is represented by a a. movement downward and to the right along a demand curve. b. movement upward and t
Lana71 [14]

Answer: c. rightward shift of a demand curve.

Explanation:

When there is movement along the demand curve, this is due to a change in the price of the good.

However, an increase in demand is noted by a rightward shift in the Demand curve. This is to signify that the demand has changed even though the price had remained the same. This shift is meant to signify that something else apart from price has caused an increase in demand such as an increase in income. After the shift, the price will have to change to reflect a new Equilibrium which will be the new intersection point with the Supply Curve.

I have attached a graph showing what happens when Quantity Demand increases.

4 0
3 years ago
Please select that whether below statements are correct or not?
Vlad1618 [11]

Answer:

Only the fourth statement is correct

Explanation:

The first statement is wrong as stock price can be worth less than its book or par value depending on the performance of the company from which the stock price derives its value.

The second statement is also not correct as convertibility implies that holders of preference shares or bonds are able to convert their holdings into a known quantity of common stock in the future not the other way round.

Dividend payments are fixed for only preferred stockholders,common stockholders are exposed to variable dividend payments which dependent on the performance of the company and the also the company's need for cash.

Limited liability is a protective provision as it aids corporation in raising funds as the investors are certain that their liability in case of the company in the event of the going bankrupt is limited to the amount invested in the company unlike sole proprietorship that could be made to pay debts from private pockets

4 0
3 years ago
When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the m
Nata [24]

Answer:

A.

Explanation:

Allocative efficiency is when the markets are working in the most economically efficient manner and there are no externalities (no over production or under production of economic goods and services).

Markets are allocative efficiency when the price equals the marginal cost.

Allocative efficiency is at an output which maximizes total consumer welfare.

is reached when no one can be made better off without making someone else worse off.

Occurs when the value that consumers place on a good or service (reflected in the price they are willing and able to paid) equals the cost of the factors resources used up in production.

8 0
3 years ago
A company had inventory on November 1, of 5 units at a cost of $24 each. On November 2, they purchased 14 units at $26 each. On
Serggg [28]

Answer:

e

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

If 11 inventories were sold, the inventory left would consist of 13 units purchased on the 2nd and 5 units the company had on the 1st

Inventory value = (13x 26) + (5 x 24) = 458

8 0
3 years ago
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante
raketka [301]

Answer:

1. $108 million fair value of award

2. December 31, 2021

($ in millions)

Dr Compensation expenses 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expenses54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock 18

Cr Paid-in capital—excess of par (remainder) 90

Explanation:

Allied Paper Products, Inc

1.

$6 fair value per share x 18million shares granted

= $108 million fair value of award

2. Journal entries

December 31, 2021

($ in millions)

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock (18 million shares x $1 par) 18

Cr Paid-in capital—excess of par (remainder) 90

5 0
4 years ago
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