The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.
<h3>What is the reserve ratio?</h3>
The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.
<h3>How is reserve ratio determined?</h3>
- The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
- The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>
The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.
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Answer:
The begining cash balance = $4100
Explanation:
Given:
Cash receipts = $7900, Cash disbursements = $ 9400, Ending cash balance = $2600.
<u>To find out the cash balance at the begining of the month, the following is to be used </u>
Begining Cash balance = Ending cash balance + cash disbursements - cash receipts
Putting the given figures in this we get,
Begining Cash balance = $2600 + $9400 - $7900
= $4100
Answer: A company maintains a website that provides information about its products and that provides an address or number that a customer can contact to obtain an order form to purchase products directly from the company.
Explanation:
With different states having varying laws but yet still sharing a lot of business interests, it is important that the states know when they can have jurisdiction over a person.
Minimum contacts is the solution and is used to determine whether an entity has sufficient contacts in a state to warrant jurisdiction over them.
Simply having a website that can be accessed by people in a state does not fall under the provisions required for minimum contact to be met so the courts in this state cannot have personal jurisdiction over this company.
Answer: $298,800
Explanation:
Cost of goods purchased = Gross merchandise cost + Transportation-in (Carriage inwards) - Purchase discount - Purchase returns
= 304,000 + 6,700 - 3,500 - 8,400
= $298,800
