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lesya692 [45]
3 years ago
7

Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking

deposits and that banks hold no excess reserves and households hold no currency. Calculate the money multiplier and money supply for this banking system.
Business
1 answer:
ivolga24 [154]3 years ago
5 0

Answer:

The money multiplier and money supply for this banking system is 10 and $1,000 billion respectively

Explanation:

The computation of the money multiplier and the money supply is shown below:

As we know that

Money multiplier is

= 1 ÷ required reserve ratio

= 1 ÷ 0.10

= 10

So, the money supply is

= Total Reserves × Money Multiplier

= $100 billion × 10

= $1,000 billion

hence, the money multiplier and money supply for this banking system is 10 and $1,000 billion respectively

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E) profit will fall by $4.00 if she harvests the 501" bushel.

Explanation:

Please see attachment

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4 years ago
A basic CRM premise is that customers form relationships with companies as opposed to companies conducting individual transactio
Romashka-Z-Leto [24]

Answer:

True.

Explanation:

In Business management, customer relationship management (CRM) can be defined as the basic combination of strategies, technologies, techniques and practices for the management and evaluation of customer interactions and informations with the company's past, current and potential customers, for the purpose of increasing sales, growth and improving customer satisfaction.

A basic customer relationship management (CRM) premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers. In order to build a mutual and strong customer relationships, it is very important and essential to create a communication medium. Companies shouldn't just engage in a one-sided business transactions with their customers, it is important and essential that they try to find out what the wants or basic needs of their customers is. Consequently, they would then be able to proffer a solution or inform them that they have a solution to meet the customer's wants or requirements.

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4 0
3 years ago
lena owns a cookie bakery in a small city. there are six other bakeries that offer cookies in the city. which of the following i
sammy [17]

The following which is not an example of the threat of entry that Lena faces in her local baked goods market is one of the six bakeries that offer cookies in the city may decide to cease cookie production in order to focus on cakes which is therefore denoted as option B.

<h3>What is Production?</h3>

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For a new company there are different factors which affects its entry into the new market and examples include the number of competitors who produce the same type of goods and services.

One of the six bakeries that offer cookies in the city deciding to cease cookie production in order to focus on cakes is not a threat of the entry because the competitor has reduced which will make it easier to enter the market.

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7 0
1 year ago
Suppose the real rate is 2.1 percent and the inflation rate is 3.4 percent. What rate would you expect to see on a Treasury bill
8090 [49]

Answer:

5.57%

Explanation:

The real rate is 2.1 percent

The inflation rate is 3.4 percent

To find the rate which is to be expected on a treasury bill we have to apply the fishers equation

1+R= (1+r)(1+h)

Therefore, the rate on the treasury bill can be calculated as follows

1+R= (1+r)(1+h)

r= 2.1%

= 2.1/100

= 0.021

h= 3.4%

= 3.4/100

= 0.034

R= (1+r)(1+h)-1

= (1+0.021)(1+0.034)-1

= (1.021×1.034)-1

= 1.0557-1

= 0.0557×100

= 5.57%

Hence the rate expected on the treasury bill is 5.57%

8 0
3 years ago
The expense recognition (matching) principle requires that expenses get recorded in the same accounting period as the revenues t
BabaBlast [244]

Answer:

True

Explanation:

The above statement true considering the revenue recognition rule, since the revenue recognition rule requires that incomes be earned, there are no unmerited incomes in collection bookkeeping. The coordinating standard requires that costs get recorded in a similar bookkeeping period as the incomes that are earned because of the costs, not when money is paid.

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4 years ago
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