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Delicious77 [7]
3 years ago
9

Assuming the required-reserve ratio is 20%, after a $5 billion purchase of securities (government bonds) from the non-bank publi

c by the Fed, if all banks make loans until excess reserves equal zero and there are no cash leakages, checkable deposits can expand as a result of new lending by a maximum of _____.
Business
1 answer:
9966 [12]3 years ago
8 0

Answer: $25 billion

Explanation:

The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:

= Deposit into banking system * Money multiplier

Money multiplier = 1 / Required reserve ratio

= 1 / 20%

= 5

Checkable deposit increase:

= 5 billion * 5

= $25 billion

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Ty has 2 brothers excluding him
5 0
3 years ago
Read 2 more answers
In Lopez Company, total material costs are $36,400, and total conversion costs are $55,080. Equivalent units of production are m
Elina [12.6K]

Answer:

Material cost per unit = $3.64

Conversion cost per unit = $4.59

Manufacturing cost per unit = $8.23

Explanation:

1. Calculate the unit cost for materials:

Material cost per unit = \frac{36,400}{10,000}

Material cost per unit = $3.64

2. Calculate the unit cost for conversion costs:

Conversion cost per unit = \frac{55,080}{12,000}

Conversion cost per unit = 4.59

3. Calculate the total manufacturing costs:

Manufacturing cost per unit = Material cost per unit + Conversion cost per unit

Manufacturing cost per unit = $3.64 + $4.59

Manufacturing cost per unit = $8.23

3 0
3 years ago
The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has aske
cricket20 [7]

Answer: the correct answer is a. Machine B

Explanation:

Machine A average rate return

40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:

40000       X                     X= 4000000/300000

300000     100%               X= 13.33%

Machine B average rate return

50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:

50000       X                     X= 5000000/250000

250000     100%               X= 20%

Machine C average rate return

$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule

$75,000     X                       X=7500000/500000

$500,000  100%                 X= 15%

The highest average is the one onf Machine B

4 0
4 years ago
Mission Corp. borrowed $50,000 cash on April 1, 2016, and signed a one-year 12%, interest-bearing note payable. The interest and
ikadub [295]

Answer:$4,500---B, ie the 2nd option

Explanation:

From April to December we have 9 months

Interest Expense is given as Loan x Interest Rate x duration

Interest Expense = 50000 x 12% x 9/12 =

50,000x 0.12x9/12= $4,500

8 0
3 years ago
The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's m
xeze [42]

Answer:

The answer is market strategy development stage.

Explanation:

During the market strategy development phase, it is analyzed if your product fits into your business strategic plans. A probable demand, the costs and the margins are estimated. Questions like what is the target market and which market share is expected need to be answered.

8 0
3 years ago
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