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
vivado [14]
2 years ago
7

Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ra

tio is 5.00%, and the Federal Reserve wants to increase the money supply by $55.00 million, the Fed would need to make an open market purchase of $________ million. (Insert your answer in millions, and round to two decimal places.)
Business
1 answer:
GrogVix [38]2 years ago
3 0

Answer:

2.75 million

Explanation:

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Required reserves = reserve requirement x deposits

Increase in value of money supply as a result of the purchase is determined by the money multiplier

Money multiplier = 1 / reserve requirement

1/0.05 = 20

increase in money supply = amount of open market purchase / reserve requirement

55  / 20 = 2.75 million

You might be interested in
Kingbird Inc. owns equipment that cost $672,000 and has accumulated depreciation of $174,000. The expected future net cash flows
aev [14]

Answer:

Explanation:

In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value - fair value

where,

Book value = Equipment cost - accumulated depreciation

                   = $672,000 - $174,000

                   = $498,000

And, the fair value is $384,000

Now put these values to the above formula  

So, the value would equal to

= $498,000 - $384,00

= $114,000

Now the journal entry would be

Loss on impairment A/c Dr $114,000

      To Accumulated depreciation A/c $114,000

(Being the impairment loss is recorded)

4 0
3 years ago
The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the F
WARRIOR [948]

Answer: decreases

                                                                         

Explanation: The following practice is done by the central bank in the situation of inflation when there is an excess supply of money in the economy.

The central bank tries to decrease the funds by selling the govt bonds to the banks. This results in decrease in funds from banks as they have to buy such bonds from their respective funds.

6 0
3 years ago
People pursue _____________ projects in the market and ____________ projects in government.
Bingel [31]
A. Their own, their own
Is the answer
4 0
3 years ago
Scientific management approach has lost its relevance. How might today's
Setler [38]

Answer:

syntific mamagement loss it relevance its relevs today it will might today it will not lost revalance

6 0
2 years ago
Beth is conducting a risk assessment. She is trying to determine the impact a security incident will have on the reputation of h
ddd [48]

Answer:

c) Qualitative

Explanation:

reputation is affected by loss of confidentiality, loss of integrity, loss of availability and etc.

Therefore, The type of risk assessment is best suited to this type of analysis is Qualitative.

5 0
3 years ago
Other questions:
  • Suppose a company has $200 in fixed costs and $40 per unit in variable costs. The company sold 10 items for a total of $1,000. H
    10·1 answer
  • None of the following would be an advantage of self-administered surveys:
    8·1 answer
  • Mr. Gupta is also considering giving his employees a raise that would increase total salaries by $35,000.00 per year. What effec
    8·1 answer
  • Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exc
    11·1 answer
  • A narrow market focus is to a differentiation-based strategy as a __________________. technological innovation is to a cost-base
    13·1 answer
  • Parton Co. is a car manufacturing company that wants to hire a new product manager. Senior management decides to have the depart
    9·1 answer
  • The loyalty program My Starbucks Rewards, which allows members to pay via their mobile device and earn points toward discounts a
    8·1 answer
  • What are the two most important factors in calculating your credit score?
    14·1 answer
  • How do you redeem a <br> lottery tickets
    6·1 answer
  • discuss with the accounts payable supervisor whether any amounts included on the accounts payable list are due to related partie
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!