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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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Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $206,000 of raw materials on credit
neonofarm [45]

Answer:

$14,000 under applied

Explanation:

Given that

Material production = $203,000

Application rate = 150%

The computation of amount of overhead is shown below:-

Overhead = Material production × Application rate

= $203,000 - ($126,000 × 1.5)

= $203,000 - $189,000

= $14,000 under applied

Therefore, for computing the overhead we simply multiply the material production with application rate percentage.

3 0
3 years ago
As a manager, what type of skill would you need to use if you had to decide if falling sales were a result of a faulty product o
hichkok12 [17]

Inspire employees and clarify their vision. Find new and innovative ways to produce and deliver goods and services.

The main function of front-line managers is to oversee departments and employees. According to Lumen Learning, they are responsible for ensuring that the team achieves the goals of the organization.

Conceptual skill. These skills represent the manager's ability to organize and analyze information to improve the performance of the organization. This includes the ability to see the entire organization and understand how the different parts combine to act as an integrated unit.

Human skills are the ability to understand, change, guide, and control the behavior of other individuals and groups, and the ability to communicate, coordinate and motivate people in a cohesive team.

Learn more about the marketing plan at

brainly.com/question/25640993

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7 0
2 years ago
In economics a computer bought by a firm for its account keeping is classified differently to a computer bought by an individual
Nesterboy [21]

Answer:

12

Explanation:

5 0
2 years ago
Identical products, as well as a large number of buyers and sellers, are characteristics of aperfectly competitive market. In su
Triss [41]

Answer and Explanation:

Perfect competition is a competitive market where there is a very wide number of buyers and sellers who offer the same or similar goods with great product and service information. Furthermore, this sector has free entry and exit

So it is a perfectly competitive market, also it cannot influence the market price also there are price takers

Also the given statement is false as it represents the monopoly market not the perfect competition market

5 0
3 years ago
When economists are sketching examples of demand and supply, it is common to sketch a demand or supply curve that is close to ve
Hitman42 [59]

Answer:

a. inelastic

Explanation:

<em>As you can see in the image I added, the curve that is close to a vertical is the inelastic one.</em> Inelastic means that the demand remains the same even if the prices go up or down.

I hope you find this information useful and interesting! Good luck!

6 0
3 years ago
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