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
svet-max [94.6K]
3 years ago
7

If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu

ired checkable deposits, then the effective monetary multiplier for the banking system will be
Business
1 answer:
Romashka [77]3 years ago
8 0

Answer: 4

Explanation:

Based on the information provided in the question, the effective monetary multiplier for the banking system will be calculated as:

= 1/Reserve ratio

= 1 / (20 + 5%)

=1/(0.20+0.05)

= 1/0.25

= 4

Therefore, the effective monetary multiplier for the banking system is 4.

You might be interested in
Why can the big candy makers produce candy that is less expensive per price?
cricket20 [7]
Bc a lot of people buy their products, so they have enough money to make a profit even if they sell it at a lower cost.
8 0
3 years ago
The BEST example of a company resource is
kumpel [21]

Answer:

The correct answer is letter "A": having proven technological expertise and an ability to churn out new and improved products on a regular basis.

Explanation:

Resources are all those components that organizations use for production. Mostly known as the factors of production they are:  

  • Land: <em>physical territory where the company handles its operations including its raw materials. </em>
  • Capital: <em>monetary resources, machinery, </em><u><em>technology</em></u><em>, and buildings. Social and intellectual capital. </em>
  • Labor: <em>people performing physical and intellectual work. </em>
  • Entrepreneurship: <em>innovation to use the land, capital, and labor at its maximum level possible.</em>

<em />

Therefore<em>, technology is a source useful for production from where companies can create other goods. Combined with expertise it could represent a competitive advantage that allows firms to outstand.</em>

5 0
2 years ago
What's the correct answer? I'll give brainliest
NISA [10]
Hi!

I think you've got the correct answer right there! (A conspicious writing).
4 0
3 years ago
Read 2 more answers
Describe Classical Theory. To do so, begin by describing its approach to the circular flow model and indicate its assumption abo
gogolik [260]

Answer and Explanation:

Classical Theory:

Classical theory states that the economy is free flowing and that there should be no outside intervention. It states that the prices and wages move up and down freely. During good times the prices and wages tend to increase and during bad times or recession the prices and wages are adjusted accordingly to downwards.

Another vital information pertaining to classical theory is that it states: economy is always at full employment level of output. Which means that the aggregate supply curve is vertical and this implies that the increase in aggregate demand or a decrease in aggregate demand will lead to increase or decrease respectively. However, the output will remain same in the economy when it comes to the classical approach.

8 0
3 years ago
The biggest factor in determining the price of a mortgage is:
xeze [42]
I'd say your answer would be the interest rate so A
5 0
3 years ago
Other questions:
  • In an organization with a(n)__________, the parent company and all the subsidiaries work together in designing policies, procedu
    5·1 answer
  • The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)
    6·1 answer
  • Which of the following describes someone's expected outcome from
    14·2 answers
  • __________ is the process by which representatives of a union meet with representatives of management to negotiate a contract fo
    14·1 answer
  • If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportat
    15·1 answer
  • In _____, organizations receive feedback from the external environment regarding the value of their outputs, the availability of
    11·1 answer
  • Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular d
    11·1 answer
  • A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%
    9·1 answer
  • a lawnmower manufacturer has the following loss distribution for its annual products liability costs: loss probability 250,000 0
    10·1 answer
  • A business that is making a profit is said to be
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!