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
zzz [600]
3 years ago
10

Suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole

system of $25,000. Then the potential deposit creation for the whole system is equal to:
Business
1 answer:
scoundrel [369]3 years ago
8 0

Answer:

$0

Explanation:

Given that,

Deposits = $100,000

Required reserve ratio = 25 percent

Total bank reserves = $25,000

Required reserve ratio refers to the ratio of deposits that are kept with the federal reserve.

Required reserves:

= Deposits × Required reserve ratio

= $100,000 × 0.25

= $25,000

Excess reserves:

= Total reserves - Required reserves

= $25,000 - $25,000

= $0

So, there is no excess reserves in this economy.

Money multiplier:

= 1/Required reserve ratio

= 1/0.25

= 4

Therefore, the total money creation potential of this deposit is zero.

You might be interested in
Assuming an upward-sloping as curve, if an economy is at full employment and consumption spending decreases while all other leve
Yuliya22 [10]

Assuming an upward-sloping as curve, if consumption spending falls while all other levels of expenditure stay the same in an economy that is at full employment, a GDP gap will be visible.

Retail store managers will take activities that result in greater Unemployment when undesirable inventories build up.

<h3>What is GDP?</h3>
  • Gross domestic product (GDP) is a monetary indicator of the total market worth of all the finished products that nations create over a certain time period.
  • This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
  • Consumption, investment, government spending, exports, and imports make up the components of the GDP when it is calculated using the expenditures method.
  • Gross fixed capital formation, changes in inventories, changes in consumption expenditure (by households, NPISHs, and general government),
  • And exports of goods and services are all included in the calculation of gross domestic product (GDP), which is then subtracted from imports of goods and services.

Learn more about GDP here:

brainly.com/question/15682765

#SPJ4

8 0
2 years ago
Javier Computer Services began operations in July 2019. At the end of the month, the company prepares monthly financial statemen
gavmur [86]

Answer:

wages expense   1,300 debit

        wages payable     1,300 credit

--------------------------------

interest expense      200 debit

             interest payable     200 credit

--------------------------------

account receivable      2,400 debit

          service revenue       2,400 credit

----------------------------------

Explanation:

we recognize the wages expense for the current period and the liability that arise from that.

interest: principal x rate x time

time and rate should be in the same metric so we express the time in portion of a year.

From July 1st to July 31th a month has past so 1/12 of a year:

20,000 x 12% x 1/12  = 200

this will be the accrued interest for the period

we must record service revenue. As it is not collected it goes int oaccount receivable

6 0
3 years ago
Real per capita GDP in South Korea in 1957 was about $400, but it doubled to about $800.00 by 1978. a. What was the average annu
miskamm [114]

Answer:

3.33%

Explanation:

Data provided in the question:

Real per capita GDP in South Korea in 1957 = $400

per capita GDP in South Korea in 1978 = $800

Total number of years taken to double the GDP = 21 years

Now,

Using the Rule of 70, which states that

Number of years to double the GDP = 70 ÷ (average annual economic growth rate )

thus,

21 years = 70 ÷ average annual economic growth rate

or

Average annual economic growth rate = 3.33%

3 0
3 years ago
January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T
Anton [14]

Answer:

169,000

Explanation:

Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:

First step is to calculate the amount assumed to be exercised

Exercised amount= 30,000*$7 / $15avg

Exercised amount= 14,000

Second step is to calculate the Net

Net=30,000-14,000

Net= 16,000

Now let calculate The number of shares to be used in computing diluted earnings per share

Using this formula

Number of shares=Outstanding+Net

Let plug in the formula

Number of shares=153,000 +16,000

Number of shares= 169,000

*diluted eps=$28,000 /169,000

Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000

8 0
2 years ago
Suppose real GDP for a country is $1,200 billion. The GDP price index is 114.6. There are 25 million workers who work 36 hours p
8_murik_8 [283]

Answer:

1,333.33

Explanation:

Labor productivity is measures the hourly output of a country's economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor.

total labor hours = 25milion x 36 hours per week

                            = 900 million

labor productivity = GDP ÷ total labor hours

labor productivity = $1,200 billion ÷ 900 million

                                $1,333.33 per hour

4 0
3 years ago
Other questions:
  • Dash of Style, a leather products company in the U.S, imported leather goods worth $ 10,000 from China. When the consignment rea
    5·2 answers
  • ​recently, amazon.com has been accused of​ __________, which is the practice of selling products below cost to harm competitors.
    7·1 answer
  • On a timeline, a goal that will be achieved in __________ years will be to the right of one that will be achieved in __________
    10·2 answers
  • The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-
    10·1 answer
  • After cooking food that must sit for a little while before being consumed, Sherry is aware that the food must remain at a certai
    5·1 answer
  • Global Services is considering a promotional campaign that will increase annual credit sales by $570,000. The company will requi
    15·1 answer
  • Which of the following would normally fall under general education requirements at a college?
    14·1 answer
  • Bryant leased equipment that had a retail cash selling price of $750,000 and a useful life of six years with no residual value.
    9·1 answer
  • When freelancers sell to publisher the right to use a piece only once, and there is no guarantee that it has not been published
    12·1 answer
  • suppose that the economy enters a boom and becomes overheated. if the fed pursues countercyclical monetary policy but overreacts
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!