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bearhunter [10]
3 years ago
9

In a fractional-reserve banking system with no excess reserves and no currency holdings, if the central bank buys $100 million w

orth of bonds, a. both reserves and the money supply increase by more than $100 million. b. reserves increase by $100 million and the money supply increases by $100 million. c. reserves increase by $100 million and the money supply increases by more than $100 million. d. reserves and the money supply increase by less than $100 million.
Business
1 answer:
NARA [144]3 years ago
4 0

Answer:

c. reserves increase by $100 million and the money supply increases by more than $100 million

Explanation:

Based on the information given in a situation where a FRACTIONAL-RESERVE BANKING SYSTEM has no availability of EXCESS RESERVES and no CURRENCY HOLDINGS, which means that if the central bank buys BONDS that worth $100 million, the RESERVES will tend to INCREASE by the amount of $100 million while the MONEY SUPPLY on the other hand will INCREASES by more than $100 million.

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He vertical hierarchy is also known as _____.
wolverine [178]
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3 0
4 years ago
Accounts that are increased with a debit include A : revenue. B : assets. C : equity. D : liability.
Akimi4 [234]

Answer:

B : assets.

Explanation:

As we know that

The debit side records the expenses, assets, and losses plus there is always a debit balance. If there is an increase in these above accounts than it also contains a debit balance

While the credit side records the revenues, gains, liabilities, and the stockholder equity. If there is an increase in these above accounts than it also contains a credit balance

3 0
3 years ago
Haulsee Inc. pays no dividend currently but is expected to start paying a small dividend next year. The 5-year-old firm has a be
wlad13 [49]

Answer:

17.10%

Explanation:

The computation of the cost of equity is shown below:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

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= 6.10% + 1.25 × 8.8%

= 6.10% + 11%

= 17.10%

The  (Market rate of return - Risk-free rate of return)  is also known as market risk premium and the same is applied.

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
Neko [114]
The current or checking account typically has very high liquidity, low or no interest, and low minimum balance. The current or checking account usually used for the daily transaction and they have a similar trait like the e-cash<span>. The current or checking account is one of three types of the bank deposit account.</span>
8 0
3 years ago
The senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the
Degger [83]

Answer:

A. Downward Communication

Explanation:

Downward communication is a communication process whereby information is passed from the top of the organizational structure to the bottom of the organizational structure. It is a situation whereby information flows down the hierarchy chain from the top of the hierarchy to the bottom.

This is the method used in which information is passed from the bosses of the organization at the top to the lower management at the bottom of the organizational chart. In this scenario, the information concerning the strategic plans moves from the senior management to the middle management and down to their respective subordinates.

3 0
4 years ago
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