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
alexdok [17]
4 years ago
8

Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the c

urrency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:A.$100 million increase in the money supply.B.$100 million decrease in the money supply.C.$200 million increase in the money supply.D.$500 million increase in the money supply.
Business
1 answer:
VikaD [51]4 years ago
7 0

Answer:

The correct answer is option D.

Explanation:

The reserve requirement is 20 percent.

The Fed purchases $100 million of U.S. securities from security dealers.

The excess reserves with banks are zero.  

When fed purchased securities, this open market operation increased the reserves with banks by $100 million.  

The increase in money supply  

= \frac{1}{RR}\times Change\ in\ reserves

= \frac{1}{0.2}\times 100

= 500

You might be interested in
Bay area peeps zoom anyone? ...bored lol
Leni [432]

Answer:

Haha no

Explanation:

6 0
3 years ago
Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one
Semmy [17]

Answer:Lack of Feasibility studies

Explanation:

He might experience obstacle if he choose not to understand the area and its demand by the people around the selected area.

Secondly is lack of capital to start up the business.

7 0
3 years ago
Read 2 more answers
Salim files a case agaisnt nina for nonpayments of dues.before the trial. nina is examined under oath in the presense of salim's
aleksley [76]

Answer:

A) deposition

Explanation:

A witness or a party's deposition takes place before the actual trial starts, during discovery (or the investigation stage). During the deposition, the party or witness must answer the questions of the other party's attorney. Those questions are answered under oath, which means that lying is considered perjury and the party or the witness can be prosecuted for it.

3 0
3 years ago
Nature's way, a health food store, has just opened in a popular neighborhood shopping center next to silver's gym, a physical fi
Afina-wow [57]
The nature's way is relying on a location principle called retail compatibility. It is where they place their location in a more suitable environment that will fit the category of their business. It could be seen above as because their business is about promoting healthy foods, they are placed near the gym where people in the gym would be attracted to their business.
6 0
3 years ago
An employee has an average wage of $60,000 and has worked for the firm for 28 years. The defined benefit pension plan pays retir
riadik2000 [5.3K]

Answer:

An employee has an average wage of $60,000 and has worked for the firm for 28 years. The defined benefit pension plan pays retirees 2.3% of the average wage times the years of service. The employee can expect to receive __$1,380_____ per year upon retirement.

Explanation:

a) Data and Calculations:

Average wage = $60,000

Number of years worked in the firm = 28 years

Defined benefit pension plan rate = 2.3%

Annual defined benefit pension plan = $1,380 ($60,000 * 2.3%)

Total benefit to be received = $38,640 ($1,380*28) or ($60,000 *28 * 2.3%).

b) This employee is expected to receive the total benefit of $38,640 for serving the firm for 28 long years under the defined pension plan, given the plan rate of 2.3% of the average wage.

8 0
3 years ago
Other questions:
  • Easy Appliances Inc. is considering a new inventory system that will cost $100,000. The system is expected to generate positive
    11·1 answer
  • N industry consists of three firms with sales of $360,000, $650,000, and $265,000.
    11·1 answer
  • Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiann
    8·1 answer
  • Rodriquez Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Rodriquez's policy is to ha
    6·1 answer
  • The manager of Gloria's Boutique has approved Carla's application for 24 months of credit with maximum monthly payments of $70.I
    6·1 answer
  • Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price
    12·1 answer
  • For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
    12·1 answer
  • PLEASE HURRY!!! I WILL GIVE BRAINLIEST!!!
    14·1 answer
  • Mark the example as ethical behavior, unethical behavior, or conflicts of interest:
    14·2 answers
  • Which financing is also known as “risk capital”?
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!