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Bas_tet [7]
3 years ago
5

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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Mr. Henshaw, CEO of MBA Bank, decides that the organization needs to provide more convenient service to customers. He decides to
ANTONII [103]

Answer: unfreezing

Explanation:

The unfreezing stage of Lewis change process is being regarded as the first stage of change, and in this stage, an organization is being prepared and accept that change is inevitable and necessary and that existing status quo should also be broken.

This is illustrated in what Mr. Henshaw, CEO of MBA Bank did, by deciding that the organization needs to provide more convenient service to customers.

6 0
2 years ago
1. Combined, Barry and Cheri bring home $3,500 each month (after taxes) from their full-time jobs. Additionally, Barry receives
pav-90 [236]

Answer:

Housing - $1080

Transportation $720

Food - $ 540

Insurance- $252

Savings- $360

Other - $648

Explanation:

The total money earned by both Barry and Cheri  is $3,500 + $ 100 = $3600

Housing 30% ____0.3 * 3600_____ = 1080

Transportation 20% ___0.2 * 3600______= 720

Food 15% _____0.15 * 3600____= 540

Insurance 07% ___0.07* 3600______= 252

Savings 10% ___0.1* 3600______= 360

Other 18% ____0.18 * 3600_____ = 648

5 0
3 years ago
On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments
puteri [66]

Answer:

Explanation:

A capital lease is a lease arrangement in which the lessor agrees to transfer the ownership of an asset to the lessee at the completion of the lease period. During the leasing contract , the lease is treated like an asset in the company's balance sheet

Lease liability at inception =                             676,000

Annual payment  made on December 2017 =(100,000)

Balance lease liability on 2017                        = 576,000

Lease liability on December 2018

Balance on 2017                                                =576,000

Factor in 10% discount on lease payment

100,000 - (576,000*10%)= 100,000-57,600 =   (42,400)

Balance on lease liability =                                  533,600

The current liability portion =

Factoring in the 10% discount =

100,000 - (533,600*10%) = 100,000 - 53,360 =  46,640

7 0
3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $18.00
Juliette [100K]

Answer:

$120,000 decrease.

5 0
2 years ago
Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida and wants to expand to other s
nasty-shy [4]

Answer:

C) Expense $23,000 for 2018.

Explanation:

Iris owns and operates TV rental outlets, so all the expenses she makes while investigating possible purchases of related businesses (other TV rental outlets) can be deducted from her income. This deductions can be made regardless of whether Iris ended up purchasing the new stores or not.  

6 0
3 years ago
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