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FrozenT [24]
3 years ago
7

Say that Fed policy requires all banks to hold 8% of deposits in reserves. If Ventura Bank does not hold any excess reserves and

the Fed increases the reserve requirement to 10%, what will be the result
Business
1 answer:
likoan [24]3 years ago
8 0

Answer:

the money supply decreases

Explanation:

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The higher the ratio, the lower the money supply

For example, assume reserve ratio is initially 8% of deposits. It is later reduced to  10%. 1000 is deposited

Increase in money supply = deposit / reserve ratio

1000 / 0.08 = 12,500

1000 / 0.1  = 10,000

It can be seen the money supply decreased when reserve ratio was increased from 8% to 10%

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Company X has 100 shares outstanding. It earns $1,000 per year and announces that it will use all $1,000 to repurchase its share
Minchanka [31]

Answer:

d) 89.0

Explanation:

The value of the company today is the present value of its cash flows in perpetuity which is the cash flows divided by the required rate of return.

value of the firm=$1000/10%=$10,000

share price=value of the firm/shares outstanding

share price=$10,000/100=$100

number of shares to be repurchased=$1000/$100=10

number of shares after repurchase=100-10=90

note that when 90.91 is rounded to a whole, it turns out to be 92 while 89 is rounded to 90

6 0
3 years ago
In what ways do the increased resources of a partnership help a business?
Neko [114]
A solo owner of a business has his own resources. By adding a partner - the partnership now doubles its resources. If a bank just takes in money and loans money out that bank is using its resources for hopefully a profit. If that bank partners with a credit card company, that bank now reaps the benefots of expanded markets and more profit and income. Partnerships are about doubling, and stacking resources of all kinds, legal - marketing channels, expanded distribution, removal of barrier of entry into new markets in some cases. These are just examples. Another similar examole is Susie has a dog walking business and partners with a dog groomer business, they both will expand resources and potentially become more profitable.
8 0
3 years ago
John, Alyson and Jared all selected identical new cars at the same price. John bought the car with some of his own money and the
tatyana61 [14]
You can wreck it and you wont get in trouble 
6 0
3 years ago
1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported
Serggg [28]

Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost =  20% of $500

                     = $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

                           = 109,500 motorcycles

Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}

=\sqrt{\frac{219,000,000}{100} }

\sqrt{2,190,000}

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

5 0
3 years ago
10. ________________ is the extent to which employees have positive or negative feelings about various aspects of their work.
lozanna [386]

Answer:

A. Job satisfaction

Explanation:

Job satisfaction can be influenced by a number of significant factors. There may be motivation or lack of motivation according to the working conditions, such as job perception, management, organizational culture, reward system, etc.

There needs to be active management to analyze what are the main factors that affect job satisfaction in an organization, so that there is greater motivation, productivity, positive business climate, ethical behaviors, etc.

5 0
3 years ago
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