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kow [346]
2 years ago
12

The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of deposits.

Business
1 answer:
Flauer [41]2 years ago
4 0

Answer:

Quantity of money changes by $50,000,000

Explanation:

Desired reserve ratio = 10% = 0.1

Currency drain ratio = 1% = 0.01

Money multiplier = (1+0.1) / (0.1+0.01) = 1.1/ 0.11 = 10

Value of securities purchased = $5 million

Change in quantity of money :

$5 million * 10 = $50 million

Currency created : currency drain ratio * change in quantity of money

0.01 * $50,000,000 = $500,000

Amount of bank deposit = quantity change - currency created

= $50,000,000 - $500,000 = $4,500,000

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Explanation:

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Advertising on Spanish radio would ensure that Hispanics hear the advertisements because they are the main ethnicity that speaks Spanish. This will give them an edge in learning about job openings and enable Paul to hire more Hispanics.

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3 years ago
Assume that Linda deposits in her checking account the $1,000 cash she was keeping at home for an emergency. If the required res
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6 0
3 years ago
QUESTION 1 Low rates of inflation are generally associated with a. low rates of productivity growth. b. small or nonexistent gov
Varvara68 [4.7K]

Answer:

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Explanation:

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In a bureaucratic organization:
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The answer is B. Employees follow strict rules and regulations.

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