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sp2606 [1]
3 years ago
13

How is a subsidy affect supply.

Business
1 answer:
OlgaM077 [116]3 years ago
8 0
How does a subsidy affect supply?
A subsidy by nature increases the purchasing power of the individual or class it is awarded to. It's like free money that can only be spent on certain things.
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Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8​%, and reserves
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Answer:

$3.68 million

Explanation:

Reserve Ratio = 8%

Reserves are currently = ​$25 million

Amount of deposits = ​$ 312.5 million

Deposit outflow = ​$4 million

Remaining Deposits =  Amount of deposits - Deposit outflow

                                  = $ 312.5 million - $4 million

                                  = $308.5 million

Current Required Reserve after outflow of deposits(CR):

= $25 million - ​$4 million

= $21 million

Therefore,

Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)

                                   = $21 - ($308.5 × 0.08)

                                   = $21 - $24.68

                                   = -($3.68)

Therefore, the reserve shortage created by a deposit outflow of ​$4 million is ​$3.68 million

3 0
3 years ago
For the fed there must be a _____________ between maintaining banking stability for the nation and allowing individual banks to
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The Fed must establish a balance between maintaining national banking stability and enabling individual banks to make a profit.

<h3>What is Federal Reserve System?</h3>

The central banking system of the United States of America is the Federal Reserve System, generally referred to as the Federal Reserve or just the Fed. The Federal Reserve System is composed of several levels. The Federal Reserve Board, which is comprised of governors selected by the president, oversees it (FRB). Twelve regional Federal Reserve Banks, dispersed across the country's cities, control and supervise independently held commercial banks. Commercial banks with national charters are required to own stock in the local Federal Reserve Bank and have some board member elections.

To know more about Federal Reserve System, visit:

brainly.com/question/3603615

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What do right-to-work laws do?
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Answer:

D

Explanation:

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