1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Chica, a women's clothing store, held a "prize drawing" for a $500 shopping spree on saturday that it had advertised throughout
d1i1m1o1n [39]
I think she did because she know the prize is $500.00.
3 0
3 years ago
Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer
USPshnik [31]

Answer:

9.59%

Explanation:

The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:

<u>Particulars                               Amount           Interest  </u>

9%, 5-year note payable      $2,458,400       $221,256  

10%, 4-year note payable      $3,504,400      $350,440  

Total                                        $5,962,800      $571,696  

So, Weighted-average interest rate is

= $571,696 ÷ $5,962,800

= 9.59%

8 0
3 years ago
Meena Chavan​ Corp.'s computer chip production process yields DRAM chips with an average life of 1 comma 800 hours and sigma ​=
Lena [83]

Answer:

Cp= 1.33

Explanation:

Giving the following information:

Meena Chavan​ Corp.'s computer chip production process yields DRAM chips with an average life of 1,800 hours and sigma ​= 100 hours. The tolerance upper and lower specification limits are 2,400 hours and 1,600 ​hours, respectively.

Cp= (upper specification - lower specification)/6*sigma

Cp= (2400 - 1600)/6*100= 1.33

3 0
3 years ago
Luther Industries has no debt, a total equity capitalization of $20 billion, and a beta of 1.8. Included in Luther's assets are
lakkis [162]

Answer:

2400000000

Explanation:

4 0
3 years ago
Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U.S. bank is 6 p
Marysya12 [62]

Answer:

  • there will be no adverse movement in exchange rates or interest rates.

Explanation:

John's best speculative element is that everything would remain in his favor; especially the exchange rates and there interest rates.

Assuming after his transaction there is a sudden negative or adverse effects on the interest rate from 6 percent to 1 percent for US deposit and a decline in the USD/Japanese Yen exchange rate he <u>would be faced with great loses.</u>

7 0
3 years ago
Read 2 more answers
Other questions:
  • On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of re
    5·1 answer
  • According to your textbook, a 1998 study of price variation found that what percentage of all the goods and services the US econ
    10·1 answer
  • Lido Pizza purchased a new oven that cost $15,000 cash on January 2, 2016. The oven has an expected useful life of five years an
    6·1 answer
  • Please help???/
    15·1 answer
  • A 6 percent, annual coupon bond is currently selling at a premium and matures in 7 years. The bond was originally issued 3 years
    9·2 answers
  • TRUE or FALSE. There are two means for achieving financial goals—you either need to increase your savings or reduce spending.
    9·2 answers
  • What are the differences between the five-stage model of team development and the punctuated equilibrium model?
    14·1 answer
  • Which doctor was the first to read the patient's chart in grey's anatomy
    8·2 answers
  • MCQ: An advantage of 'forced distribution method' is
    8·1 answer
  • In which step of the nursing process does the nurse determine the outcome of medication administration? group of answer choices
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!