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
Anettt [7]
3 years ago
14

Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A

. As a result, Bank A finds itself with $1,000 in excess reserves that it lends out and those funds end up in Bank B. What dollar value goes in banks (A) and (B), respectively?.
Business
1 answer:
notsponge [240]3 years ago
5 0

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

You might be interested in
Assessment
Sunny_sXe [5.5K]

This should NOT be considered when  setting a current budget

Future income

Explanation:

Future income can be anticipated but never factored in.

This is because the economy is not only controlled by economic policy or statistics that anticipate growth but outside influences too.

For example, despite the productive growth in the recent time there will be decrease in incomes throughout the world this year.

This is because of the recent crisis that was not foreseen at all.

Thus policy making must not see the future as anything granted and must only set up goals for the present and only anticipate what would probably come in the future.

4 0
3 years ago
True or false most small business owners enjoy being part of a team
Mandarinka [93]
I believe the answer is false
4 0
3 years ago
People who receive the benefit of a good without contributing to its costs of production are called?
masha68 [24]

Free riders are those who gain from a thing without contributing to its manufacturing expenses.

<h3>When the creation of a thing incurs external expenses, the?</h3>
  • An external cost occurs when the production or use of a goods or service imposes a cost (negative effect) on a third party.
  • If a good has external costs connected with it (negative externalities), the social costs will be larger than the private cost.
  • Market failure may occur in the presence of external expenses. This is because the free market frequently ignores the existence of external expenses.
  • The cost to a third party of consuming/producing one more unit is known as the external marginal cost (XMC).

learn more about external costs refer:

brainly.com/question/14203073

#SPJ4

5 0
1 year ago
For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand, aggregate supply,
Bad White [126]

Answer:

2. (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both

Explanation:

a. $1,000 per person tax reduction  ⇒ focus on aggregate demand (more money for consumers to spend)

b. a 5% reduction in all tax rates  ⇒ focus on both aggregate demand and supply (more money for consumers and suppliers)

c. Pell Grants, which are government subsidies for college education  ⇒ focus on aggregate supply (more money for suppliers of college education)

d. government-sponsored prizes for new scientific discoveries ⇒ focus on aggregate supply (more money for suppliers of new scientific discoveries)

e. an increase in unemployment compensation  ⇒ focus on both aggregate demand and supply (more money for consumers resulting in higher prices and lower output)

4 0
3 years ago
The managerial accountant at Safety, Inc. prepared a Flexible Budget Performance Report. The managerial accountant noticed a $5,
alexandr1967 [171]

Answer:

The managerial accountant found out that the cost of the units previously sold was higher than the selling price per unit.

If the variance is unfavorable, it means that the total budgeted costs were larger than the total budgeted revenue. In this case the variance was $5,600 unfavorable. We are not told how many units were sold but it is obviously a mistake to sell products at a lower price than COGS. So the previous flexible budget was not properly prepared.

7 0
3 years ago
Other questions:
  • How should the davises react to adidas' planned acquisition of reebok? what aspects of new balance's operations strategy should
    7·1 answer
  • Prospect Realty Co. pays weekly salaries of $27,600 on Monday for a six-day workweek ending the preceding Saturday. Journalize t
    7·1 answer
  • At Taylor Activewear, orders have significantly exceeded projections, and Macon, the operations director, has decided to hire fo
    14·1 answer
  • The _____ adds up the market prices of final goods and services. product approach expenditure approach income approach
    12·1 answer
  • EB8.
    15·1 answer
  • The collection of an account that had been previously written off under the allowance method of accounting for uncollectibleA. w
    8·1 answer
  • 23. In an interest rate swap between AAA who wants to convert fixed rate loan to floating-rate loan and BBB who wants to convert
    8·1 answer
  • Concord Inc. took a physical inventory at the end of the year and determined that $783000 of goods were on hand. In addition, Co
    9·1 answer
  • On November 1, 2015, Ybarra Construction Company issued $400,000 of 5-year bonds that pay interest at an annual rate of 5%. The
    7·1 answer
  • Need help ASAP!
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!