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Verdich [7]
2 years ago
7

You just received a bonus at your job of $4,000 which you decide to put in a savings account at the local bank. Assume that bank

s lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks get deposited in the banking system. Round your answers to the nearest dollar.The reserve requirement is 18%, how much will your deposit increase the total value of checkable deposits?If the reserve requirement is 7%, how much will your deposit increase the total value of checkable deposits?Decreasing the reserve requirement _____ the money supply.a. Decreasesb. Increases
Business
1 answer:
Rama09 [41]2 years ago
4 0

Answer:

$22,222.22

$57,142.86

INCREASES

Explanation:

Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.

If $4000 is deposited and reserve requirement is 18%

reserves would increase by $4000 x 0.18 = 4720

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

Money multiplier = amount deposited / reserve requirement

$4000 / 0.18 = $22,222.22

$4000 / 0.07 = $57,142.86

It can be seen that the higher the reserve requirement, the lower the increase in the total value of checkable deposit

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Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current pr
bija089 [108]

Answer:

The outlook for the economy and the markets is for an improvement.

Explanation:

p/e ratio = price / earning

the higher the equity, the lower the ratio

If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .

this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook

8 0
2 years ago
Accounts Receivable from sales to customers amounted to $80,000 and $70,000 at the beginning and end the year, respectively. Inc
Kipish [7]

Answer:

$332,000

Explanation:

<u>Cash flow from operating activities</u>

Net Income                                                                                  $252,000

Adjust for changes in working capital items :

Decrease in Accounts Receivable ($80,000 - $70,000            $80,000

Net Cash Provided by Operating Activities                              $332,000

Conclusion

the cash flows from operating activities to be reported on the statement of cash flows is $332,000

5 0
3 years ago
MCQ
yulyashka [42]

Answer:

none of the above

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because the organization must know how much they own

8 0
2 years ago
Sew much fabrics buys fine linens, silks, and other fabrics from sellers in more than 30 countries to retail to local customers.
Viefleur [7K]

Sew much fabrics is an example of a company that imports.

<h3>What does import mean?</h3>

Import is when a good or service is brought into a country from a foreign country.  An example of import is when a person living in the US buys silk from Italy.

Reasons for import

  1. There may be more varieties in foreign countries.
  2. The imported good could be of a better quality.

To learn more about imports, please check: brainly.com/question/26497713

3 0
2 years ago
Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve
andrew11 [14]
The potential risk that the investors may face when this is made use is that the issuer may not be able to make profit when the bonds are considered to offer as a guaranteed return because they are honored by law and with that, this will cause the value of the bond to be lowered when exposed in the market in which the return will also be lower when return to the investors. 
7 0
3 years ago
Read 2 more answers
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