Answer:
Increase by $5000
Explanation:
The United States Central Bank or the Federal Reserve (Fed) is responsible for controlling money supply in the United States as well as the activities of the commercial banks. This control can be carried out through a particular activity known as the Open Market Operations (OPO). This activity could be in form of buying or selling securities in the market.
According to the question, the 20% required reserve ratio means the banks are to maintain 20% of their total deposits. This means that a market purchase by the Fed of $1000 will increase the money supply by 5 times the amount bought by the Fed (20% is 1/5 of 100%).
The increase is calculated as $1,000 x 5 = $5,000
Answer:
Don't take part in the foolishness that is the stock market and you don't have to worry about the crash.
Explanation:
Investing in the stocks has its upsides but it also has a lot of downsides and in the end you will lose a lot of money dealing with crooks.
Answer:D. A service company's variable costing income statement includes contribution margin
Explanation:
A variable costing income statement is used to arrive at the contribution margin which is the difference between total sales and total variable costs. The fixed cost is deducted from the contribution to arrive at the net profit or loss
I think false because it they dont really have to be
Answer:
Peter's Pans is trying to overcome competitive disadvantage
Explanation:
Competitive advantage is the ability of a company to produce goods in such a way that it captures market share from other companies.
Competitive advantage can be with regard to quality, price, services, and so on.
In this scenario the Peter Pan wants to obtain a similar sized cookware company. This will make his company to be larger in size.
He intends to use the larger size of the company as a way to overcome competitive advantage of Iron Maiden, the industry leader.
