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]
3 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]3 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
The use of anthropological techniques to study businesses and what some people call organizational culture in order to assist th
Alinara [238K]

The use of anthropological techniques to study businesses and what some people call an organizational culture to assist the business is most specifically an example of applied anthropology.

What is applied anthropology and why is it important?

Applied anthropologists use anthropological concepts and methodologies to address issues in the real world. For instance, they might assist in resolving environmental, educational, or health-related issues in local communities. They might also assist with historical interpretation in museums, national parks, or state parks.

How is anthropology used in organizational behavior?

Understanding what works and what doesn't, how individuals use technology and tools in their daily work, and how employees get meaning from their jobs are all made easier by an anthropological perspective on organizational behavior. A possibility to genuinely understand what is happening and why in an organization is provided by business anthropology.

Learn more about applied anthropology: brainly.com/question/27992203

#SPJ4

4 0
1 year ago
Annual Dividends<br><br> Question 4 Attached
WARRIOR [948]

Answer:

no it's was not because we don't add

6 0
2 years ago
'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will i
olchik [2.2K]

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is <u><em> false</em></u> because <em><u>a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes. </u></em>

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.

4 0
3 years ago
Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pay
Vikki [24]

Answer:

The Ariana's accounting profit for the year was $6,000

Explanation:  

Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.

Where,

Total revenues includes sales revenues

And total cost includes monetary cost, etc.

So,

Accounting profit = Total revenues - Total cost

where

Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000

Monetary cost = $9,000

So,

Accounting profit = $15000 - $9000 = $6,000

Hence, the Ariana's accounting profit for the year was $6,000

7 0
3 years ago
What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month? set all to zero ex
zubka84 [21]

What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month set all to zero except $800-$999 medicare $100, internet $50, telephone $50. food $600.The amount paid to an employee in a month before taxes or other deductions is known as gross monthly income.

The amount is specified in both job offer letters and paychecks. Overtime, bonuses, and commissions are all possible sources of additional gross monthly income. Gross pay is related. Your gross income will also help you budget and figure out how much money you'll have to save for retirement.

To learn more about gross income, click here

brainly.com/question/547727

#SPJ4

8 0
1 year ago
Other questions:
  • Roland is facing a criminal trial after being arrested for committing manslaughter. At a certain stage in the pretrial process ,
    9·1 answer
  • Erica, a team manager, was known for heading projects with diligence and conscientiousness. However, she was insensitive and exc
    7·1 answer
  • Which of the following is an example of a functional team? a. A plastic surgeon, a dentist, a nurse, and a health insurance spec
    8·2 answers
  • As discussed in the narrated power point presentation on groups and teams, _____________ is one of the most important advantages
    13·1 answer
  • On October 25, 1989, Mina Loy sent a letter to Carl Van Vechten which said, "I hereby offer to hire you to paint my house for $4
    11·1 answer
  • _______________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell
    6·1 answer
  • Smith Office Equipment​ Company's budgeted manufacturing overhead is $ 4 comma 500 comma 000. Overhead is allocated on the basis
    6·1 answer
  • What is the most important reason for a food handler to understand and apply food safety knowledge
    5·1 answer
  • Which of the following is the best example of a good?
    9·1 answer
  • XYZ Company operates on a remote interstate highway. It provides premium services to truckers en route to remote locations. It h
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!