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vovangra [49]
3 years ago
12

The Federal Reserve buys $38.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is dep

osited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $_______ million.
Business
1 answer:
Mumz [18]3 years ago
6 0

Answer:

$95 million

Explanation:

When the Feds buys securities, it is an expansionary monetary policy

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Required reserves = reserve requirement x deposits

Excess reserves is the extra that it kept by banks

Money supply = deposit / total reserves

total reserves = 30 + 10 = 40%

total increase in money supply = $38 / 0.4 = $95 million

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A stock will have a loss of 13.6 percent in a recession, a return of 12.3 percent in a normal economy, and a return of 27 percen
SpyIntel [72]

Answer:

Standard deviation =21.34

Explanation:

<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .</em>

<em>Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios</em>

Expected return (r) = (13.6% × 0.33 ) +  (12.3% × 0.36)  + (27%× 0.31)=17.3%

Outcome           R       (R- r )^2           P×(R- r )^2

Recession        13.6       13.6                 4.5

Normal         12.3         24.9                  8.9

Boom           27%        94.4              <u>     29.3 </u>

Total                                                <u>   42.7 </u>

Standard deviation = √42.7 = 21.34

Standard deviation =21.34

3 0
3 years ago
A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month.
shtirl [24]

Answer:

True.

Explanation:

A business can choose to pay their employees a salary of 1. Weekly 2. Bi-weekly 3. Bi-monthly 4. Monthly. The longer the time for each paycheck, means that you will get payed more each paycheck but less frequently.

5 0
3 years ago
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation of cocaine into the United Stat
nikklg [1K]

Answer:

The Price of Cocaine would rise drastically

Explanation:

If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:

  • Since more restrictions get imposed, the procurement cost of cocaine alongside the risk associated with it in the form of higher penalties and prosecution, both will rise.
  • The supply of cocaine would shrink in the market.
  • The above two outcomes would result into the procurers and peddlers demanding much greater price for the same quantity of cocaine so as to compensate for the higher risk assumed and higher procurement costs associated.

Thus, price of cocaine will rise drastically as an outcome of such a move.

3 0
3 years ago
Which of the following is true?
shepuryov [24]

Answer:

The correct answer is letter "A": Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

Overhead is an accounting term used for costs that must be paid, even though the company receives no profits. A company would not be able to survive without paying its overhead expenses but the costs are not connected directly to a product or service being generated. Examples of overhead costs are rent, utilities, office supplies, and maintenance.

<em> </em>

<em>Overhead costs are difficult to be traced because they can be assigned to more than one factor.</em>

5 0
3 years ago
Computers makes 5 comma 900 units of a circuit​ board, CB76 at a cost of $ 290 each. Variable cost per unit is $ 220 and fixed c
blondinia [14]

Answer:

There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

Explanation:

Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.

Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.

Incremental savings  

Saving in variable cost   220

saving in fixed cost   25

Total saving                   245

less: Incremental cost (270)

Incremental profit /(loss) on buying from outside supplier (25)

Total loss 25*5900= -147500

Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

4 0
3 years ago
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