Answer:
b. decreases both the money multiplier and the money supply.
Explanation:
An increase in reserve requirements will decrease the money supply in the economy. This is because, banks and other financial institutions will have lower excess reserves to lend out to the public hence decreasing the overall amount of borrowing . Based on money multiplier, the explanation is based on the following equation;
Money multiplier = 1/ required reserve , if the required reserve increases then the fraction will be smaller. Therefore, the money multiplier will decrease too.
Answer:
<u>D. None of the above.</u>
<u>Explanation:</u>
The more likely acronym that is been referred to here which helps one analyze business communication situations is ACE, which stands for;
A- Analyzing,
C- Composing, and
E- Evaluating.
Thus, since this isn't among the options, the correct answer is option D.
Ignoring it or creating an alternate course.
Answer:
$700 (not given in the options)
Explanation:
When the policy is purchased with a payment made in advance, the entries recorded are
Debit prepaid insurance $8,400
Credit Cash account $8,400
After the first month, the expense incurred is
= 1/12 × $8,400
= $700
Entries then required
Debit Insurance expense $700
Credit Prepaid Insurance $700
<span>Although a profitable surplus of products was maintained, money was as scarce in the colonies as it was in England. Whenever gold or silver was earned from exported products, it had to be sent to England to pay debts or to import needed goods. This produced an environment where money was scarce even despite the decent profit earned from crops.</span>