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Vesna [10]
3 years ago
10

Assume that there is a 25 percent reserve ratio and that the Federal Reserve buys $4 billion worth of government securities. If

the securities are purchased from the non-bank public, this action has the potential to increase money supply by a maximum of:
Business
1 answer:
timofeeve [1]3 years ago
8 0

Answer: $16 billion, and also by $16 billion if the securities are purchased directly from commercial banks

Explanation:

Since we are given a 25% reserve ratio, then the money multiplier will therefore be:

= 1/25%

= 1/0.25

= 4.

Therefore, the money supply will be increased to (4 billion × 4) = 16 billion.

Therefore, the answer is "$16 billion, and also by $16 billion if the securities are purchased directly from commercial banks".

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What are some causes of gentrification
ser-zykov [4K]

Answer:

Gentrification can cause low rents, immigration, and increasing population.

Explanation:

7 0
3 years ago
Compare and contrast the product vs. process layouts. What are the advantages & disadvantages? List examples of products tha
Contact [7]

Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

7 0
3 years ago
The aggregate demand curve would shift to the right as a result of A. tax increases. B. a drop in the price level. C. a drop in
UNO [17]

Answer:

. C) a drop in the foreign exchange value of the dollar.

Explanation:

An aggregate demand curve can be regarded as a curve that display total spending that is available

domestic goods/services with respect to their price level. the horizontal axis provide the real GDP while price level is displayed by vertical axis. It should be noted that The aggregate demand curve would shift to the right as a result a drop in the foreign exchange value of the dollar.

6 0
3 years ago
Which component of table setting includes knives?
Keith_Richards [23]

Answer:

Steelware I think

Explanation:

7 0
2 years ago
Three workers each take home two packs of Post-It notes at a cost of $.67 per pack.
Katarina [22]

Answer:

$ 4.02

Explanation:

Take two packs ×3 and it = 6 then take 6 × 67 and you get $4.02

8 0
3 years ago
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