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
rosijanka [135]
3 years ago
15

Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent. If this bank sells a bond

for $1,000 to a Federal Reserve Bank, it can expand its loans by a maximum of:_________
A. $1,000.
B. $2,000.
C. $800.
D. $5,000.
Business
1 answer:
artcher [175]3 years ago
4 0

Answer:

D) $5,000.

Explanation:

The money multiplier will determine the bank's capacity to "create" money.

The money multiplier = 1 / reserve ratio = 1 / 20% = 5

If the bank sells a $1,000 bond, it will expand its total loans by the increase in the reserves x the money multiplier = $1,000 x 5 = $5,000

You might be interested in
Unique corp. had 50,000 shares of $5 preferred stock, $100 par, and 100,000 shares of $1 par common stock outstanding throughout
goldenfox [79]
50,000 x 5 = $250,000 Preferred Dividends 
(780,000 - 250,000) / 100,000 = 
b.$5.30 
5 0
3 years ago
Details of invoices for purchases of merchandise are as follows: Merchandise Freight Terms Returns and Allowances(a) $2,800 $45
Lostsunrise [7]

Answer:

A.$2,619

B.$6,800

C.$839

D.$495

Explanation:

Calculation to Determine the amount to be paid in full settlement of each of the invoices,

a) (2,800-200)*99%+45

=2,600*99%+45

=2,574+45

= $2,619

b) (7,600-800)

= $6,800

c)$1,400 – $600 – $16 + $55

=$784+$55

= $839

d)$500 –$5 = $495

6 0
3 years ago
Assume a consumer can buy two goods, A and B, and that the prices are Pa and Pb respectively. The marginal utility of A is MUa a
Veseljchak [2.6K]

Answer:

(c) MUa/Pa = MUb/Pb

Explanation:

The Utility Maximization Rule is

MUa/Pa = MUb/Pb, where MUa represents the marginal utility derived from good a, Pa represents the price of good a, MUb represents the marginal utility of good b and Pb represents the price of good b.

7 0
4 years ago
Chapter 44 discusses the "executive" and the "independent" administrative agencies. The primary distinction between the two type
MrMuchimi

Answers:

It won't be advisable to transform this executive agencies to independent agencies, because it will reduce the power of the president, and therefore reducing the ability of the president to carry on it's agenda.

ADVANTAGE OF THE TRANSFORMATION:

1) Their will discharge their duties without any political influence.

2) The president will not longer have strong influence on their decision.

3) Each head of the agency will have a specific time and duration for it plans to be achieved before the end of it's tenure.

DISADVANTAGE OF THE TRANSACTION:

1) It will develop fight for power and control in the decisions of the agency, between the president and the head of the agency.

2) it will take away harmony been seen between the president office and the agency.

3) it will reduce the power been invested in the president in carrying on a better administration.

Executive heads owe allegiance to the president, because their are appointed by the president, and can only be removed by the president. During appointment, the president usually appoints it's loyalist that is qualified to head the agency. This is why some of their heads resign, when their can no longer cope with the will of the president.

8 0
3 years ago
The _____ key combination will enter a new slide in a presentation. Ctrl+N Function+S Ctrl+M Insert+N
maria [59]
Ctrl+M is the answer

If you press Ctrl+N it opens a new window while in a web browser
7 0
3 years ago
Other questions:
  • Drag the tiles to the correct boxes to complete the pairs.
    14·1 answer
  • Explain how money (increased commerce) spent by tourists in the Macro Islands moves through the economy's circular flow diagram.
    10·1 answer
  • Very recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can
    12·1 answer
  • Gaining knowledge and skills is an
    14·1 answer
  • The​ risk-free rate is 3.4​% and you believe that the​ S&P 500's excess return will be 11.9​% over the next year. If you inv
    5·1 answer
  • If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000, then:a. this is impos
    13·1 answer
  • Concern for the environment among consumers causes consumers to substitute away from traditional autos to electric-powered autos
    7·1 answer
  • O'Garro Inc. has paid a regular quarterly cash dividend of $0.70 per share for several years. The common stock is publicly trade
    14·1 answer
  • PLEASE HELP! IN A TEST! A salesperson may sell from a distance except when it involves _____.
    12·1 answer
  • In accrual basis accounting, revenue is recorded when the seller ______.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!