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Rudiy27
3 years ago
6

The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it hol

ds $0.5 million as required reserves. What is the money multiplier in this economy?
a. 1
b. 5
c. 10
d. 20
Business
1 answer:
pogonyaev3 years ago
7 0

Answer: d. 20

Explanation:

The Money multiplier is the number that new deposits are multiplied with to find out their total effect on the banking system.

It is calculated by dividing 1 by the required reserve ratio.

Required reserve ratio = 0.5/10

= 5%

Money Multiplier = 1/5%

= 20

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The following is a list of accounts commonly seen in financial statements. Identify whether each account appears on the balance
Anastasy [175]

Answer:

Balance sheet:

Accounts Payable -Liability

Property, Plant. and Equipment -Asset

Long-Term Debt-Liability

Retained Earnings-equity account

Prepaid Expense -Asset

Common Stock -equity account

Accounts Receivable-Asset

Income statement:

Cost of Goods Sold-expense

Research and Development-expense

Explanation:

Property, plant and equipment , accounts receivable and prepaid expenses would appear on the asset side of the balance sheet.

Long-term debt and accounts payable are both liabilities since they are obligations owed to third parties while retained earnings and common stock are both equity account

Lastly,cost of goods sold and research and development cost are expenses in the income statement

3 0
3 years ago
Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you hav
sergejj [24]
Amount = Principal ( 1 + interest rate) ^ years

$1000 = $600 ( 1 + .07 ) ^ years

$1000 / $600 = 1.07 ^ years

1.66667 = 1.07 ^ years

years = 8


4 0
3 years ago
Grandma's Bakery wants to begin selling gluten-free products and vegan products. The C-Suite executives have made the decision a
8_murik_8 [283]

Answer:

The correct answer is letter "B": functional managers.

Explanation:

Functional managers are those in charge of carrying out the operations of a business. These types of executives receive orders from the company's owners -stakeholders- after an analysis of what course the firm should take according to current market conditions so the managers can implement the plan in the organization's activities.

6 0
3 years ago
How many european union countries use the euro as their official currency?
BlackZzzverrR [31]

Answer:

19

Explanation:

The euro is the sole currency of 19 EU member states: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

6 0
3 years ago
Which of the following would make the best thesis statement for a debate? a. Art and music classes are great. b. Schools should
Novosadov [1.4K]
The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.

I hope this helps!
~cupcake
3 0
3 years ago
Read 2 more answers
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