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omeli [17]
2 years ago
7

Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve req

uirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? Which events could cause the increase in the money supply to be less than its potential?
A. Banks decide to keep some excess reserves on hand.
B. Banks choose to loan out all excess reserves.
C. All money loaned out is deposited back into the banking system.
D. Some loan recipients choose to hold some cash instead of depositing all of it in banks.
Business
1 answer:
Semenov [28]2 years ago
7 0

Answer:

35000

A, d

Explanation:

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

If $3500 is deposited and reserve requirement is 10%

reserves would increase by $3500 x 0.10 = $350

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

Money multiplier = amount deposited / reserve requirement

3500 / 0.1 = 35000

If the banks keep excess reserves, the amount of money available to be loaned out would reduce and this would reduce the increase in money supply.

Also, if individuals keep the money at home, it would reduce the amount of money that can be loaned out by banks

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A router, also a home network, allows you to connect several computers and other devices to a single Internet connection.

Hope this helps!

3 0
3 years ago
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Why is cash flow important to government entities? How does an administrator plan for cash flow? What tools are available for th
vodka [1.7K]

Answer:

Cash flow is important to government entities because:

As with non-government entities, cash flow is important to government organizations because it is required for the operations of any organization regardless of whether they are government-owned or not, for-profit or not.

The measurable difference in the cash balance of any organization from one period to the next is referred to as Cashflow. No business or entity can continue operations if they keep taking out or spending more cash than they can make.

An administrator can plan for cash flow using a Cash Flow Planner.

This can take the form of a simple excel spread sheet  with one column showing on one side all the monies that one is expecting to come in (Account Receivables) and an adjacent column showing all the monies one is expecting to pay out (Account payables).

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There are specialised apps that help perform this function. An example would be Quickbooks, Planware, Cash Flow Planner, etc.

Cheers!

6 0
3 years ago
Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of
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Answer:

          \large\boxed{\large\boxed{\$ 13,200}}

Explanation:

This is an algebra question about fractions.

You need to find 3/10 of the income, and the income is $44,000.

You must muliply the fraction 3/10 by the $44,000 income.

To multily one fraction by a whole number you convert the whole number to a fraction with denominator 1. Then multiply numerator with numerator and denominator with denominator. This is how:

                     \dfrac{3}{10}\times \dfrac{\$ 44,000}{1}=\dfrac{3\times \$ 44,000}{10}=\\\\\\=\dfrac{\$ 132,000}{10}=\$ 13,200

3 0
3 years ago
When two goods are substitutes production then what??​
swat32

Answer:

An increase in the price of one substitute good causes a decrease in supply for the other.

Explanation:

I just took a test on this subject last week :)

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Oksi-84 [34.3K]

Answer:

The non-partisan organization that has set the rules for U.S. presidential and  vice presidential debates since 1987 is discussed below in details.

Explanation:

A non-partisan system is an arrangement of administration or organizations such that general and intermittent elections take place without relating to political parties. there are two types of Non-partisan organizations: De facto and De jure.

The commission of presidential debates was organized in the year 1987 to assure that the debates, as a constant part of every general election. The commission of presidential debate advocate and present debates for the United States presidential and vice-presidential candidate.

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3 years ago
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