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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 company had the following partial list of account balances at year-end: Sales Returns and Allowances $ 1,000 Accounts Receivab
ArbitrLikvidat [17]

Answer:

$91,900

Explanation:

The computation of net sales revenue is shown below:-

Here, for reaching the net sales revenue we add the sales revenue and deduct the sales return and allowances with sales discounts

Net sales revenue = Sales Revenue - Sales Returns and Allowances - Sales Discounts

= $95,000 - $1,000 - $2,100

= $91,900

Therefore we have applied the above formula.

4 0
3 years ago
Present and Future Values for Different Periods:
DiKsa [7]

Answer:

1. $636

2. $674.16

3. $566.04

4. $534

Explanation:

PV = FV ÷ (1 + r/n)^(t × n)........(1)

PV = present value

FV = Future value

r = rate per period

t = number of years

n = number of compounded period per year

FV = P(1 + r/n)^(t×n)...............(2)

FV = Future value

P = principal

r = rate per period

n = number compounded period per year

t = number of year

NO 1.

P= $600

t = 1

n = 1

r = 6% = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(1 × 1) = $636

NO 2

P = $600

n = 1

t = 2

r = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(2 × 1) = $674.16

NO 3.

FV = $600

r = 0.06

t = 1

n = 1

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04

NO 4.

FV = $600

r = 0.06

n = 1

t = 2

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534

8 0
3 years ago
One approach to organization is putting activities that are similar under one person. ________ called this ""unity of direction.
IgorLugansk [536]

Answer:

Explanation:

One approach to organization is putting activities that are similar under one person. Fayol called this ""unity of direction."" . Fayol was the first person who outlined the functions of management. He has fourteen principles of management; Unity of directions is one of the principle which narrates that  One boss, one plan for a group, of activities having the same objective. As unity of direction principle, it leads all the members of the organization towards a common goal to achieve its objective.

5 0
3 years ago
On February 1, you bought 100 shares of stock in the Francesca Corporation for $42 a share and a year later you sold it for $46
Luden [163]

Answer:

12.381%

Explanation:

For computing HPY and HPR, the formula is same which is given below:

The formula to compute the HPY is shown below

= Dividend income + (Selling price - purchase price) ÷ purchase price

= ($1.20 + $46 per share - $42 per share) ÷ $42 per share

= ($1.20 + $4 per share)  ÷ $42 per share)

= $5.20 per share ÷ $42 per share

= 12.381%

6 0
3 years ago
The herfindahl-hirschman index is the ________ of the percentage market share of each firm summed over the largest 50 firms in a
Ann [662]
<span>The herfindahl-hirschman index is the measure of the percentage market share of each firm summed over the largest 50 firms in a market.
HHI is the measure of market concentration. It is the commonly accepted measure. if H</span>erfindahl-Hirschman index is low and its four firm concentration ratio is low then the market is considered competitive.

3 0
3 years ago
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