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
Maslowich
2 years ago
10

A bank's actual reserve ratio is the percentage of total deposits a bank actually holds on to. It is made up of the percentage t

hey are required to hold on to, known as the required reserve ratio, plus any extra they choose to hold on to. Suppose Dave's bank has an actual reserve ratio of 12%, and his bank makes a loan to Darlene based on the funds from Dave's deposit. How much does the money supply increase as a result of this second step
Business
1 answer:
Vsevolod [243]2 years ago
5 0

Answer:

The increase in the money supply will be "833333.33".

Explanation:

  • The real reserve ratio of either a lender seems to be the proportion of overall reserves another bank currently occupies onto another.
  • It consists of the proportion they become required to secure forward with, referred to that as the reserve requirement expected, including whatever extra those who happen to retain onto this.

According to the question,

The multiplier will be:

⇒ \frac{1}{RRR}

⇒ \frac{100}{12}

⇒ \frac{25}{3}

So the increase will be:

⇒ 100000\times \frac{25}{3}

⇒ 833333.33

You might be interested in
Are you able to get a free credit report once a year from each credit bureau
goldenfox [79]
Answer. You're entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.
7 0
2 years ago
Explain six Differences between private and public company​
elena-s [515]
<h3>Question:</h3>

•explain six Differences between private and public company.

Answer:

•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.

Explanation:

#Let's Study

#I Hope It's Help

#Keep On Learning

#Carry On Learning

6 0
2 years ago
If interest rates are declining, which of the following would be expected? (A) Discount bonds will appreciate more than premium
KengaRu [80]

Answer:

option A

Explanation:

The correct answer is option A.

When interest rates are declining , prices of the bond rise, but in this case the discount bonds will appreciate more than the premium bonds.

When interest rates fall  it becomes very easier to borrow money and causing many companies to issue new bonds so that they can invest in new ventures.

A premium bond is a bond trading above its face value.

A bond issued at a discount has its market price below the face value.

5 0
3 years ago
According to the terminology associated with changes in currency values, which of the following choices is the case when a curre
patriot [66]

Answer:

C) devaluation and revaluation

Explanation:

Devaluation and revaluation is the way that government changes the exchange rate of it's currency in relation to others.

Devaluation is the reduction of the exchange rate of a countrie's currency usually against the United States dollar. This reduces the currency value in relation to the foreign currency.

Revaluation on the other hand is when a country increases the exchange rate, making the value higher against foreign currency.

6 0
3 years ago
A(n) _______ is a person who engages in leadership activities but whose right to do so has not been formally recognized.
alexdok [17]

Answer:

The correct answer is letter "C": informal leader.

Explanation:

Informal leaders are individuals to whom people put their trust on because they provoke a strong influence within a group or because others see that individuals as examples to follow. However, informal leaders are not officially recognized. Most formalized leaders begin naturally being informal leaders until the collective will of subordinates place them in the position of power.

4 0
3 years ago
Other questions:
  • Assume that one year ago, you bought 130 shares of a mutual fund for $27 per share, you received an income distribution of $0.12
    12·1 answer
  • Ground-fault circuit interrupters must be used for all of the following except?
    11·1 answer
  • Economies of scope Question 21 options: stem from the cost-saving efficiencies of scattering a company's manufacturing/assembly
    6·2 answers
  • On january 1 of 2015, parson freight company issues 7%, 10-year bonds with a par value of $2,000,000. the bonds pay interest sem
    7·1 answer
  • If you were assigned to prepare a capital expenditure budget request, what two people would you most want to have on your team?
    14·1 answer
  • Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will
    7·1 answer
  • This is 1 question do not delete, mods. how am I supposed to separate a connect the lines thing without knowing the answers
    15·1 answer
  • How was the halftime show yesterday
    10·1 answer
  • Which information would most likely cause a company's stock price to go up?
    12·1 answer
  • On may 31, 2022, hughes construction recorded $50,000 in bonds payable, $30,000 in notes payable, $9,000 in wages payable, $3,00
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!