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alekssr [168]
3 years ago
8

The Fed buys $10 million of securities from AIG. AIG has a desired reserve ratio of 0.05, and there is no currency drain.

Business
1 answer:
Andreyy893 years ago
3 0

Answer:

$200,000,000

Explanation:

Given that:

Amount of securities purchased = $10 million

Desired reserve ratio = 0.05

The bank's excess reserve :

Money multiplier * amount of securities purchased

Money multiplier = 1 / reserve ratio

Money multiplier = 1 / 0.05 = 20

Excess reserve = 20 * $10,000,000

Excess reserve = $200,000,000

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lapo4ka [179]

Answer:

A). It shows you have done solid research to back up your conclusions

Explanation:

(APEX CONFIRMED)

6 0
3 years ago
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Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials invent
gayaneshka [121]

Answer:

Direct material used=  $123,600

Explanation:

Giving the following information:

January 1 December 31

Inventories

Raw materials inventory $8,900 $11,300

Materials purchased $126,000

<u>To calculate the direct material used, we need to use the following formula:</u>

Direct material used= beginning inventory + purchases - ending inventory

Direct material used=  8.900 + 126,000 - 11,300

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6 0
3 years ago
When the bond sells at par, the implicit €/$ exchange rate at maturity of a Euro/U.S. dollar dual currency bond that pays $651.2
Anna007 [38]

Answer:

€1.54/$1.00

Explanation:

When the bond sells at par, the implicit €/$ exchange rate pays €651.25 at maturity per €1000

651.25/1000= 1/x

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651.25x = 1000

x= 1000/651.25

x= 1.54

Hence the implicit exchange rate is €1.54/$1.00

4 0
3 years ago
Which of the following is an example of a capital market instrument? Group of answer choices Banker's acceptances. Commercial pa
stealth61 [152]

Answer:

Preferred stock

Explanation:

The capital market instruments refer to the instrument that involves stock, bonds, debentures, the preferred stock that deals in the securities and come under the capital

Also, the other options that are mentioned are the money market examples

Therefore the correct option is preferred stock and the same is to be considered

8 0
3 years ago
A television advertisement for Chick-fil-a shows several cows eating grass in a large field. The camera zooms out to show that t
JulsSmile [24]

Answer:

D) being original

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The copy used in this commercial is original, specially given the context. Generally advertisements show the product that is being advertised, not a substitute product (cow meat is substitute to chicken meat). This ad tries to be funny in showing that cows prefer people eating chicken instead of them.

8 0
3 years ago
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