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algol13
3 years ago
10

The Federal Reserve buys $30.00 million in Treasury securities. If the required reserve ratio is 20.00%, and all currency is dep

osited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30. Round your answer to two decimal places.)
Business
1 answer:
alukav5142 [94]3 years ago
6 0

Answer:

$100 million

Explanation:

Increase in the total value of checkable deposit is determined by the money multiplier

Reserves = required reserves + excess reserves

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Excess reserves is the difference between reserves and required reserves

Money multiplier = amount deposited / reserve requirement

$30 million / 0.2 + 0.1 = $100 million

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At the end of 2017​, Apple had cash and​ short-term investments of $ 74.48 ​billion, accounts receivable of $ 17.58 ​billion, cu
yarga [219]

Answer:

a. Apple current ratio =  Current asset / Current liabilities

                                    =   $128.78billion/ $101.27billion

                                     = 1.27

b Apple Quick ratio    =  (Current asset - Inventory ) / Current liabilities

                                     = ( $74.48billion + $17.58billion)/ $101.27billion

                                     =  $92.06billion/$101.27billion

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c. Apple Cash ratio   = cash and short-term investment / current liabilities

                                   =  $74.48billion / $101.27billion

                                  =   0.77

d. By comparing the computed ratios of Apple and HPQ, it shows that Apple asset liquidity is better than that of HPQ.  The current ratio of Apple is 1.27 as against 0.96 for HPQ. also in term of Quick ratio, Apple has 0.91 while HPQ has 0.54.  The cash ratio of HPQ is 0.33 while Apple figure stood at 0.77

Explanation:

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3 years ago
What can communicators do to ensure facts, rather than vague impressions, are shared?
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4 years ago
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Hope this answers your question :D  



BTW this is my first answer


3 0
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