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blsea [12.9K]
3 years ago
8

Suppose the required reserve ratio is 20 percent, and the Fed buys $1 million worth of bonds from the public. If the public depo

sits this amount into transactions accounts, the money supply will
Business
1 answer:
777dan777 [17]3 years ago
7 0

Answer:

Increase directly by $1 million and an additional lending capacity of $4 million will be created for the banking system.

Explanation:

The formula for increase in money supply is

Increase in money supply = (1 / Required reserve ratio) * Excess reserve.

Now, we have, required reserve ratio of 20%.

That means, out of $1 million deposit, required reserve = ($1,000,000 * 0.20) = $200,000.

Now, we knew that, Total reserve = required reserve + excess reserve

Total Reserve = $1,000,000 and required reserve = $200,000.

So, Excess reserve = $1,000,000 - $200,000 = $800,000.

Now, Increase in money supply = (1 / 0.20) * $800,000 = $4 million.

That means,

If the public deposits this amount into transactions accounts, the money supply will:

Increase directly by $1 million and an additional lending capacity of $4 million will be created for the banking system.

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mestny [16]

Answer:

<em>B. Unique selling proposition</em>

Explanation:

The scenario which is been presented in the question is the example of "Unique selling proposition"

Because in "Unique selling proposition", the companies use a unique method to attract and convince the customers to buy and use the product of the particular company.

So, we can see that <em>manufacturer of Green & Black brand confections uses</em> unique method to attract and convince the customers to buy and use its product, the method is known as <em>"Unique selling proposition".</em>

8 0
2 years ago
experts argue that, to limit the potential for war and other armed conflict, efforts by international bodies must be increased,
Elan Coil [88]

To limit the potential for war and other armed conflict, efforts by international bodies must be increased, particularly at United Nations well-known organization.

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In about 30 nations or territories, the UN provides assistance in demining, including in Afghanistan, Colombia, the Democratic Republic of the Congo, Libya, and the Sudan. Thousands of civilians are killed or injured each year by landmines. The UN also promotes full international participation in treaties relating to landmines and provides instruction on how to avoid danger, aids victims in becoming self-sufficient, and helps nations destroy stockpiled landmines.

Learn more about United Nation (UN), here

brainly.com/question/9763405

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8 0
1 year ago
For 2012 Fielder Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 12,000. There wer
jonny [76]

Answer:

$2.50

Explanation:

The Earnings Per Share of a company is determined by using the formula:

EPS= (Net Income of the Company - Dividend to Preferred Shareholders) ÷ Average Outstanding Shares of the Company

Since there is no dividend to preferred shareholders

EPS= Net Income of the Company - ÷ Average Outstanding Shares of the Company

=30000 ÷ 12000

=$2.50

5 0
3 years ago
Do Public schools, charities and government agencies seek for profit
Delvig [45]
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7 0
3 years ago
The phases of project management are: A. planning, scheduling, and controlling. B. planning, programming, and budgeting. C. plan
o-na [289]

Answer:

A. planning, scheduling, and controlling.

Explanation:

The phases of project management are -

1. Initiation

2. Planning

3. Execution - Scheduling

4. Control

5. Close

Option A is correct because the answer includes the 2nd, 3rd, and fourth phases of project management.

Option B is wrong because programming is not a phase of project management. Option C is a combination of management functions. Therefore, it is incorrect. Option D is not correct as the service project is not different from the manufacturing project. Option E is the project management technique.

4 0
3 years ago
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