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3 years ago

If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___. g

Business

1 answer:

Llana [10]3 years ago

3 0

Answer:

If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___.

$3,200.

Explanation:

a) Data and Calculations:

Excess reserves = $800

Reserve requirement = 20%

Therefore, M1 money supply = $800/20% = $4,000

The increase in the M1 money supply will be $3,200 ($4,000 - $800)

b) The amount of funds that a bank is required by the central bank to hold in reserve to meet liabilities in case of sudden withdrawals by depositors is called the reserve requirement. It is usually stated as a percentage by the Fed Reserve. The Fed uses reserve requirement as a tool to increase or decrease money supply in the economy and influence interest rates. What the Fed does with the reserve requirement, therefore, depends on the monetary policy that it chooses to respond to the money market.

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Economics concerns the allocation of resources for which processes?

slavikrds [6]

Production and Distribution. Economics is concerned with how to produce goods and services using limited resources, and most efficiently distribute these products to maximize the benefit of everyone.

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3 years ago

As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also

eduard

As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also falls with increased consumption. this scenario describes a downward-sloping demand curve

<h3>What is a Demand Curve?</h3>

This refers to the graph or pictorial representation that shows how the demand for a commodity or service varies with changes in its price.

Hence, we can see that As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also falls with increased consumption. this scenario describes a downward-sloping demand curve

Read more about demand curve here:

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7 0

1 year ago

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi

VARVARA [1.3K]

Answer:

4,000 units

Explanation:

Given that

Sales volume = 60,000 units

Budgeted production = 54,000 units

Beginning finished goods = 10,000 units

The computation of units for ending finished goods inventory is computed below:-

Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

54,000 = Ending finished goods + 60,000 - 10,000

54,000 = Ending finished goods + 50,000

= 4,000 units

6 0

3 years ago

Which of the following is an organizational factor that increases illegitimate political behavior?

Akimi4 [234]

Answer:

B) high trust zero-sum reward practice

Explanation:

Zero sum reward practices are generally not that successful since usually only a few are benefited while several people are left out of the benefits, or lose. If someone gains a benefit at the expense of others, it will always cause friction within the organization. That friction can lead to illegitimate political behavior, which is behavior that breaks implied rules. The regular "losers" in zero sum reward practices may be tempted to break the rules or cheat in order to obtain the benefits.

For example, if the same person is always selected as the employee of the month, his/her "losing" coworkers may start to sabotage his/her work.

4 0

3 years ago

Statement of cash flows

likoan [24]

Answer:

Palmetto Statement of Cashflows

<u>For the Year Ended December 31, 2013 </u>

Cashflow from Operating Activities

Net Cashflow from Operaing Activities $15,600

Cashflow from Investing Activities

Net Cashflow from Investing Activities ($23,000)

Cashflow from Financing Activities

Net Cashflow from Financing Activities ($4,500)

Net Increase (Decrease) <u>($11,900)</u>

Add: Beginning of Period Cash balance $32,000

Ending Cash Balance <u>$20,100</u>

b. Operating Cash flow relates to the normal business operations of the business. A Net Cash Inflow from this therefore means that the business made a profit from its normal operations of selling fast food during 2013.

c. Investing Activities relate to transaction involving Fixed Assets as well as the stocks and bonds of other companies. The Net Cash flow was probably caused by Palmetto buying more Fixed Assets than they disposed of in the year 2013.

d. Financing activities relate to how the business is financed in terms of Equity and debt. The payments of Dividends therefore fall under here as they relate to Equity. A net cash outflow here therefore probably means that Palmetto paid out dividends to shareholders. They might have also repaid some loans but judging by how small the outflow is, the loans were either small or it was only dividends that were paid out.

4 0

3 years ago