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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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Subject: Accounting
prisoha [69]

Answer:

D) $1120

Explanation:

The goods Sally purchase were $1440, and with the 25% discount, she would have paid $1080, because 25% of $1440 is $360. Since she returned 1/3, she would have only spent $720, because $1080/3 is also $360. $720+$400 from the beginning would be $1120

7 0
3 years ago
Read 2 more answers
True or False: A sole proprietor is personally responsible for all of the businesses debts, and may be legally required to pay o
arlik [135]
I have to guess true
8 0
3 years ago
On January 1, 2021, Everglade Company purchased the following debt securities and properly accounted for them as securities avai
hammer [34]

Answer:

Unrealized gain = $12,000

Explanation:

Security    Cost A     Fair value B    Unrealized amount (B-A)

ABC          $40,000    $55,000                 $15,000

DEF           $72,000    $65,000                -$7,000

XYZ           $16,000     $20,000                 <u>$4,000</u>

                                                        Total    <u>$12,000</u>

So, the unrealized gain to be recorded is $12,000

4 0
3 years ago
demand and marginal revenue curves are downward-sloping for monopolistically competitive firms because
Brrunno [24]

Demand and marginal revenue curves are downward-sloping for monopolistically competition firms because: a. product differentiation allows each firm some degree of monopoly power.

<h3>What is product differentiation?</h3>

Product differentiation  can be defined as what makes a product to different from another product which is why some producer tend to include a unique features in their so as to make their product distinct from that of others.

A monopolistic competitive firms can tend to  face a downward - sloping demand curve based on the fact that it help to differentiate their product from that of others competitors.

Therefore the correct option is A.

Learn more about Product differentiation here: brainly.com/question/8107956

#SPJ1

The complete question is:

Demand and marginal revenue curves are downward-sloping for monopolistically competition firms because...

a)product differentiation allows each firm some degree of monopoly power

b)there are a few large firms in the industry and they each act as a monopolist

c)mutual interdependence among all firms in the industry leads to collusion

d)each firm has to take the market price as given

6 0
1 year ago
A firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the mark
ahrayia [7]

Answer: 0.25

Explanation:

The The debt-to-equity ratio is calculated when the total liabilities of w company is divided a by the shareholder equity while the book-to-market ratio is used to know a company's value by comparing the book value of the company to its market value.

Since the firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. The ratio of the book value of debt to the market value of equity will be:

= 0.5/2

= 0.25

5 0
3 years ago
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