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ki77a [65]
2 years ago
9

Suppose the banking system does NOT hold excess reserves and the reserve ratio is 25%. If Melanie deposits $1,000 of cash into h

er checking account, the banking system can increase the money supply by:__________
Business
1 answer:
Leviafan [203]2 years ago
3 0

Answer:

$3,000

Explanation:

Calculation for the increase the money supply

Using this formula

Increase in money supply=(Cash/Reserve ratio)-Cash

Increase in money supply=($1,000/0.25)-$1,000

Increase in money supply=$4,000-$1,000

Increase in money supply=$3,000

Therefore based on the information given the banking system can increase the money supply by $3,000

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Okay. So the warehouse bought the digital way Che's for $92.99 and they're gonna sell it to people for 25% more. So what we do is 92.99 * 125% or 1.25 in decimal form. When we multiply the numbers together, the product is 116.2375 or 116.24 when rounded to the nearest hundredth. The selling price of the digital watches is $116.24.
4 0
3 years ago
To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southw
larisa86 [58]

Answer:

See Explanation section

Explanation:

We know,

Profit = Sales - Expenses

To find the total seminar profit, we have to determine the number of newly opened accounts. As it is binomial distribution, we have to make an equation to reach out the seminar profit -

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3 years ago
The company enters a lease agreement requiring lease payments with a present value of $14 million. will this lease agreement aff
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5 0
2 years ago
Castelda company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $999.38 and then pay no annual
professor190 [17]

Answer:

16.59%

Explanation:

We are given the present value of the bonds, their future value and the time, we need to calculate the rate:

FV = PV (1 + rate)ⁿ

  • FV = 100,000
  • PV = 999.38
  • n = 30

100,000 = 999.38 (1 + rate)³⁰

(1 + rate)³⁰ = 100,000 / 999.38 = 100.062

1 + rate = ³⁰√100.062 = 1.1659

rate = 1.1659 - 1 = 0.1659 or 16.59%

8 0
2 years ago
According to the principles of supply and demand, why is it that as the price of a product increases, the amount supplied will a
Nezavi [6.7K]

According to the principles of supply and demand,  the price of a product increases, the amount supplied will also increase because there is positive relationship between price and quantity supplied.

<h3>Why when price increases supply also increases?</h3>

Economists States that there is a positive relationship between price and quantity supplied—that means a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied.

Principle of supply states that at a higher price, a producer is willing to produce more of a good.

Principle of demand states that at a higher price, a consumer is less willing to purchase a good.

Learn more about the principles of supply and demand here:-

brainly.com/question/1967319

#SPJ1

6 0
2 years ago
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