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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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Answer:

Turbo Tech has been able to offer more perceived value than Best Mobile

Explanation:

Turbo Tech has managed to market itself as a superior brand compared to Best Mobile. Through aggressive marketing, Turbo has convinced the industry that it is better than Best mobile.

Marketing is about creating brand perception. If customers agree with your arguments, the brand gains an advantage in the market. Perception is not reality. These two competitors have the same unit cost and market price. It could mean that their quality is also on the same level.

Turbo Tech has a better martketing strategy than Best Mobile.

7 0
3 years ago
Bill just financed a used car through his credit union. His loan requires payments of $275 a month for five years. Assuming that
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Amortized loan

Explanation:

Hope that helps

5 0
2 years ago
Choose a type of company that would have sales people, and then answer the following questions about it. TIP: Choose a type of c
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<h2>A company cannot run without marketing department. They bring source to the company through which the company gains money / make money.</h2>

Explanation:

  • As stated earlier no company exists without sales team.
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The type of company which I would like to start up myself would be an Training institute.  My dream organization need,

  • Need sales team to pitch and get people and indirectly bring business
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3 years ago
Rivals would find it difficult to challenge atlas door in the short run because of high threat of substitution. low buyer switch
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8 0
4 years ago
Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP. What might policymakers do i
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Based on the situation facing Country Q, they might respond by <u>trying to </u><u>trade </u><u>with other </u><u>nations </u><u>to</u><u> increase production</u><u> and </u><u>create </u><u>new </u><u>jobs</u>

<u />

Trading with other nations:

  • Allows for an economy to develop as it would produce more to export
  • Increases employment as people would work in the new companies created to produce export

It would therefore be in Country Q's best interest to trade as this would increase their employment figures and GDP on account of higher production.

In conclusion, Country Q should trade more.

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3 years ago
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