Consider a world in which there is no currency and depository institutions issue only transactions deposits and desire to hold no excess reserves. The required reserve ratio is 15 percent. The central bank sells $0.98 billion in government securities.
What happens to the money supply?
Give reasons to support your answer.
Answer:
The answer is below
Explanation:
Considering the situation described above, the result is that there will be a DECREASE in the money supply of $6.53 billion.
This is because the money multiplier is calculated as 1/rr, where RR is the reserve ratio.
Hence, in this case, we have 1/0.15 = 6.67
Therefore, 6.67 × $0.98 billion = $6.53 billion.
Explanation:
The global environment affects all of the other environmental influences such as the economic, legal, and social environments because: the increase in free trade among nations and technological changes have created globalization and increased competition.
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Answer:
an unconscionable contract
Explanation:
Unconscionable contracts are contracts that are considered so unjust, unfair and one-sided that they shock the conscience. This type of contracts are usually voidable and not enforceable.
In this case, the seller had the superior bargaining power, because the other party didn't speak English, and took advantage of that position to make an extremely unfair deal. A court would void this transaction.
Answer:
At the expected growth rate of 18% and rate of return 24% the stock price will be $63.92
Explanation:
Stock price = $3.25 * (1+18%) / (24%- 18%)
Stock price = $3235 /0.06
Stock price = $63.92
Thus the stock price will be $63.92
Kelly analysis the workflow of the soft drink manufacturing company, which means that she reviews all processes in the company in order to improve them and improve the business in general : to increase the unit's productivity and efficiency. The workflow analysis consists of 5 phases:1. requirements, 2. analysis, 3. design 4.implementation and 5.test. If Kelly is at the last stage of analyzing the workflow, she is <span>identifying the operating processes that need to be employed in the production of the soft drinks.</span>
