1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vitfil [10]
2 years ago
9

If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of

Business
1 answer:
Nezavi [6.7K]2 years ago
5 0

Based on the information given regarding the reserve requirements, there'll be an increase in the money supply by $4000.

A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.

Since the reserve requirement is 25%, a new deposit of $1,000 leads to a potential will lead to an increase in the money supply of $4000. This was calculated thus:

= $1000 / 25%

= $1000 / 0.25

= $4000

Learn more about money on:

brainly.com/question/24556197

You might be interested in
Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
DENIUS [597]

Answer:

23.3%

Explanation:

Expected return refers to the anticipated profit or loss of financial investment. Essentially, it's the value of the return that investors anticipate. We can find the expected return by using the formula given below

Δ IR = 5-5% - 2% = 3.5%

Δ IP = 6% - 4% = 2%

Formula

Expected return = Expectedreturn(previous year) + (betaIP x Δ IP) + (betaIR x Δ IR)

Expected return = 12% + (2.5 x 2%) + (1.8 x 3.5%)

Expected return = 23.3%

5 0
3 years ago
An Amazon seller is deciding which of their products to invest in for the next quarter to maximize their profits. They have each
Aleksandr [31]

This question is about the sales strategy for online selling portal Amazon.

An Amazon seller is identifying strategy to revive its declining sales. The seller wants to maximize its revenue by adopting optimum product mix for next quarter.

The maximum profit can be calculated using the following :

maxProfit (k , profit): n = len(profit) rotate = n // 2

windowSum = float('-inf') iterator = 0

Conclusion: The products which are showing positive trend in the market should be placed visible for the next quarter. The products products profit is estimated to be equal to cost to invest which the price of product plus its launching expense.

Formula: The maximum profit a seller can achieve through this strategy is (k , profit):

n = len(profit) rotate.

Learn more Business at brainly.com/question/26144002

8 0
2 years ago
$511,000 bond issue sold for $483,000. Therefore, the bonds: Multiple Choice Sold for the $511,000 face amount less $28,000 of a
Brrunno [24]

Answer: Sold at a discount because the market interest rate was higher than the stated rate. S

Explanation:

the bonds was Sold at a discount because the market interest rate was higher than the stated rate. This is as a result of the bonds issued which were at a discount having its market price way lower than its face value. Bonds tends to be sold at a discount when the market interest rate has exceeded the stated rate of the said bond.

6 0
2 years ago
Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
GalinKa [24]

Answer:

A decrease in the elasticity of demand for the cartel's product.

Explanation:

The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.

Adverse effects on consumers include:

1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.

2)  Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.

3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.

4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.

4 0
3 years ago
Suppose the government increases the corporate income tax rate. this is
ExtremeBDS [4]
<span>part of a contractionary fiscal policy</span>
3 0
3 years ago
Other questions:
  • 18. You have $$42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year un
    12·1 answer
  • Robert is a wealthy businessman who wishes to purchase a particular property. realizing that the price might become inflated if
    9·2 answers
  • _________ is calculated by taking _________ and then subtracting the value of how much physical capital is worn out, or reduced
    7·1 answer
  • In the context of skills of successful managers, making sacrifices to encourage and promote desired outcomes in an organization
    7·1 answer
  • Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer
    5·1 answer
  • You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance
    15·1 answer
  • Zephyr Inc., a manufacturer of electronics products, is planning to release a new product into the market. They are hoping to ta
    11·1 answer
  • When would you include an executive summary in a report?
    6·1 answer
  • According to the theory of comparative advantage, countries and the world gain from trade because quizlet
    10·1 answer
  • You are evaluating your current portfolio of investments to determine those that are not performing to your expectations. You ha
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!