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sergiy2304 [10]
2 years ago
7

Please help…………………………….

Business
1 answer:
tresset_1 [31]2 years ago
4 0
I think it’s B I had this question before
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Suppose you deposit ​$1400 cash into your checking account. By how much will checking deposits in the banking system increase as
grin007 [14]

The rounded nearest dollar is \$12727.27

<u>Solution:</u>

Deposit multiplier is a feature that explains how much money banks create when they loan money to borrowers.  

The sum for the banks to lend is the amount of money kept by the banks above the appropriate balance.

It is the key element of a fractional banking reserve system.

Banks in the United States must meet Federal Reserve minimum requirements, but they can set higher deposits multiplier.

Change in deposit = \$1400

RRR = 0.110

Change in the Money supply = (Change in the Monetary base) \times (Money multiplier)

Money multiplier= 1 \div \text{ reserve ratio }=\frac{1}{0.110}=9.091

Change in money supply= 1400\times9.091= \$12727.273 that is approximately 12727.27 dollars.

5 0
3 years ago
If people speculate that a run on one bank will cause a run on all banks in the financial​ system, and this speculation proves​
fiasKO [112]

Answer:

This is known as Bank panic

Explanation:

Bank panic happens when in a banking system, many banks suffer from a bank run, that is, many of its depositors loss their confidence that the bank may repay their deposit, thus they want to withdraw their deposit put with the bank.

As Banks operating using notably high leverage, many of its assets are not highly liquid ( e.g: loans, bonds that will not be paid until maturity) and the fact that they lend to and borrow from each others frequently and heavily, a bank run happens for one bank may cause liquidity issues to not only that bank but also other banks in the systems.

Having understood that, people tend to speculate that a run on one bank will cause significant problem to the systems, and a likely probability that bank panic occurs.

5 0
3 years ago
According to liquidity preference theory investment spending would rise if the price level
ANTONII [103]

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

4 0
3 years ago
Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,00
DerKrebs [107]

Answer:

131,250= number of units

Explanation:

Giving the following information:

<u>We need to calculate the number of units to be sold to maintain a profit of $175,000.</u>

Unitary variable cost= $3

Fixed expenses= $350,000

Selling price= $7

Net income= total contribution margin - fixed cost

175,000= number of units*(7 - 3) - 350,000

525,000 = number of units*4

525,000 / 4= number of units

131,250= number of units

7 0
3 years ago
The process through which a product or service takes root initially in simple applications at the bottom of a market and then mo
cricket20 [7]

The process through which a product or service takes root initially in simple applications at the bottom of a market and then moves up, eventually displacing established companies, is referred to as <u>Disruptive Innovation</u>.

In a business idea, disruptive innovation is an innovation that creates a brand new market and price network or enters at the lowest of an existing market and in the end displaces established marketplace-leading companies, products, and alliances.

Disruptive innovation refers to using a generation that upsets a structure, instead of "disruptive technology", which refers back to the era itself. Amazon, launched as an online bookstall in the mid-Nineties, is an example of disruptive innovation.

Disruptive innovation is the manner by using which a smaller enterprise—normally with fewer sources—moves upmarket and demanding situations larger, hooked-up corporations.

Learn more about disruptive innovation here brainly.com/question/17185200

#SPJ4

8 0
1 year ago
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