All categories

3 years ago

The central bank buys $15,000 worth of bonds in the open market from Christopher, who

Business

1 answer:

vladimir2022 [97]3 years ago

4 0

Answer:

(a) What is the amount by which Carla Bank's liabilities have changed?

Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).

(b) Calculate the change in required reserves for Carla Bank.

Carla Bank's reserves must increase by $15,000 x 5% = $750

(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?

Carla Bank can loan $15,000 x 95% = $14,250

(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.

Money multiplier = 1 / 5% = 20

The money supply has the potential to increase by $15,000 x 20 = $300,000

(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.

Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.

You might be interested in

Kiera’s dog walking business is booming, and she is interested in expanding. In order to expand, her company needs more customer

Artemon [7]

Answer:

The correct answer to the following question will be "She enhanced her brand image".

Explanation:

Keira dramatically improved her brand reputation by getting ready a logo to promote her unquantifiable facility of various dog walking the dog. Designed to enhance the brand identity requires connecting with the clients regarding your brand as well as trying to make your provider or good extra attractive to the users. That is among the most powerful advertising moves.
Keira aims to grow its market here by generating more competition for its intangible growing organization. For all of this she chooses to help improve her brand value so that she can get so many requirements for her provider as well as make higher revenue.

So that the above is the right answer.

3 0

3 years ago

Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 12 percent a

aalyn [17]

Answer:

Idol Staff, Rail Haul, Poker-R-Us

Explanation:

The standard deviation of a stock is a measure of the volatility of the stock or simply put, a measure of risk of the stock.

The idea of using standard deviation as a measure of stock risk is in the relation of the stock to its returns.

The farther the standard deviation is from the revenue, the more risky or at risk the stock is.

From the above question, Idol staff has the highest level of risk of 20% (i.e 35-15). Next up is Rail Haul with a risk level of 13% (i.e 25-12). the stock with tthe lowest risk level is Poker-R-Us with 11% (i.e 20-9).

Cheers.

3 0

3 years ago

The produces computers and sells them to . At the same time produces cars and sells them to the . Suppose there is an appreciati

Elanso [62]

Correct/Complete Question:

The United States produces computers and sells them to Russia. At the same time, Russia produces cars and sells them to the United States. Suppose there is an appreciation in the dollar. This will cause:

Answer:

increase in imports into the United States and decrease in exports to Russia will occur, which will cause a decrease in aggregate demand and real GDP

Explanation:

Aggregate demand is the total demand for a good or service in an economy at a given time. Real GDP on the other hand can be defined as an inflated value of goods and services in an economy at a certain period of time. An inflation of the dollar will increase imports into the united states as it would decrease the exports to Russia. This because the appreciation of the dollar will affect the prices of both computers and cars. And as such will

6 0

3 years ago

Mocha Company earned net income of $ 105,000 during the year ended December 31, 2018. On December 15, Mocha declared the annua

lapo4ka [179]

Answer:

The answer is given below;

Explanation:

Retained Earnings (125,000*2%) Dr.$2,500

Dividend payable Cr.$2,500

Retained Earnings (62,000*.25) Dr.$15,500

Dividend Payable Cr.$15,500

5 0

3 years ago

The palmer acres inn is trying to determine its break-even point during its off-peak season. the inn has 50 rooms that it rents

ivanzaharov [21]

They don't hit their break even point with all of the additional costs. They are still $11060 under the break even point at the end of the month

5 0

3 years ago