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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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serious [3.7K]

Answer:

d) relative to others instead of against performance standards.

Explanation:

Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.

The person's ratings is affected negatively or positively.

A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.

5 0
3 years ago
During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896
STALIN [3.7K]

Answer:

A) March 31 journal entries for wages expense and wages payable

  • Dr Salaries and Wages Expense account 64,000
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B) March 31 journal entries for company's payroll tax expenses

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8 0
3 years ago
the common sotkc of Ubees is currently sold at $26.35 per share, and it just a divident of $1.00 last year. The flotation costs
White raven [17]

Answer:

11.06%

Explanation:

Cost of equity = (D1/Current price) + Growth rate

Cost of equity = [(1.00*1.07)/26.35] + 0.07

Cost of equity = 0.04061 + 0.07

Cost of equity = 0.11061

Cost of equity = 11.06%

So, Ubees's cost of internal common equity is 11.06%.

7 0
3 years ago
The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance,
lubasha [3.4K]

Based on the information given, the results show that A.The annual dividend rate in the utility industry is significantly less than the annual dividend rate in the banking industry.

A dividend rate simply means a financial ratio that is important as it shows how much a company pays out in dividends every year relative to the stock price of the company.

In this case,  the 95% confidence interval shows an interval of 1.28 to 6.28 for the difference. This implies that the annual dividend rate in the utilities industry is significantly less than the annual dividend rate in the banking industry.

Learn more about dividends on:

brainly.com/question/3161471

4 0
2 years ago
Which type of menu would a food service establishment that serves seasonal items most likely to have?
yanalaym [24]

Answer:

A

Explanation:

Seasons cycle, and therefore the menu with it

4 0
3 years ago
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