The RRR is 20%. Total demand deposits in the economy equal $2 billion. Banks in the economy are fully lent up (i.e., are holding no excess reserves). The Fed then lowers the RRR to 10%. As a result, the money supply, assuming that banks continue to be fully lent up and that there are no cash leaks, shall __________________ . (Hint: First calculate bank's cash reserves as 20% of $2 billion

Answers

Answer 1

This tells us that if there are no cash leaks there would be a rise by 2 billion dollars in the money supply.

The total demand deposit = 2 billion dollars

The RRR is said to be = 20%

This is now = 10%.

20% of 2billion =

[tex]\frac{20}{100} *2000000000\\\\= 400million[/tex]

10% of 2billion = 200 million.

The excess = 400m - 200m

= 200m

The money = 200*1/0.10

= 2 billion dollars.

10% is kept while 90% is lent out compared to before when 20% was kept and 80% lent out.

Former multiplier = 1/0.20 = 5

Multiplier now = 1/0.10 = 10.

This tells us that if there are no cash leaks there would be a rise by 2 billion dollars in the money supply.

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Related Questions

You are part of a small team that develops your company’s products. Your team is facing competition on the market and time and cost pressures internally. In order to manage these circumstances and encourage innovation, you’ve built a team culture that encourages rapidly testing and iterating upon new ideas. One of your colleagues, however, has struggled with wanting to find the perfect solution before taking action. This caused delays, impacting team performance, and frustration for many team members as they felt held back. Yet, nobody said anything to him. You want to provide him with considered feedback to help him get comfortable with experimentation and risk taking. What will you say to him? How will you give the feedback to highlight his behaviors and encourage a change? Make sure your feedback focuses on the positive: the outcome or impact your colleague will have if he changes his behavior – this will motivate and encourage him!

Answers

Answer:

Here.

Explanation:

I would say things like there's a problem with this, lets get together and fix it or this is perfect! Or this is good but we might have some adjustments to make. I would pay attention to every little detail to make this product a success!

The best approach to reach out to the affected worker would beto:

Ask him why he has a problem with finding solutions and taking actionSuggest workable solutions which you and members of the team have used successfullyExplain to him that his indecision is impacting the team work.

All these are important when giving considered feedback to the worker so that he knows how his poor performance is affecting members of his team.

Furthermore, by giving him workable solutions he would be forced to implement them and if this still does not work, it would be justified if he is replaced with a more capable worker.

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One year​ ago, your company purchased a machine used in manufacturing for . You have learned that a new machine is available that offers many​ advantages; you can purchase it for today. It will be depreciated on a​ straight-line basis over ten​ years, after which it has no salvage value. You expect that the new machine will contribute EBITDA​ (earnings before​ interest, taxes,​ depreciation, and​ amortization) of per year for the next ten years. The current machine is expected to produce EBITDA of per year. The current machine is being depreciated on a​ straight-line basis over a useful life of 11​ years, after which it will have no salvage​ value, so depreciation expense for the current machine is per year. All other expenses of the two machines are identical. The market value today of the current machine is . Your​ company's tax rate is ​, and the opportunity cost of capital for this type of equipment is . Is it profitable to replace the​ year-old machine?

Answers

Answer:

Yes it would be profitable to replace a year old machine.

Explanation:

its always best to buy new things to replace others.

old things usually dont work correctly and could be out of date.

buying something new can reduce that probability of not working correctly

Is foreign employment good or bad for Nepal?​

Answers

They are good for employment

It has an immediate benefit but it is not beneficial for a long term of the Nepalese labour and sweat is being used in foreign countries and there is scarcity of human power for the development of our own country


The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. 1 Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30.
31 Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note.
Jul. 1 Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and issuing a series of ten 9% notes for $20,000 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $40,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $65,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

Answers

Completing the recording of the transactions in Sherwood Co. is as follows:

Mar. 1 Debit Inventory $225,000

Credit Accounts Payable (Kirkwood Co.) $225,000

To record the purchase of goods on account, terms n/30.

Mar. 31  Debit Accounts Payable (Kirkwood Co.) $225,000

Credit Notes Payable (Kirkwood) $225,000

To record the issuance of a 30-day, 8% note on account.

Apr. 30 Debit Notes Payable (Kirkwood) $225,000

Debit Interest Expense $1,500

Credit Cash $226,500

To record payment on note payable with interest.

Jun. 1 Debit Cash $600,000

Credit 6% Notes Payable (Triple Creek Bank) $600,000

To record loan from bank on a 45-day, 6% note.

Jul. 1 Debit Equipment $50,000

Credit Notes Payable (Poulin Co.) $50,000

To record purchase of tools with 60-day note.

Jul. 16 Debit Interest Expense $4,500

Credit Cash $4,500

To record the payment of interest expense.

Debit 6% Notes Payable (Triple Creek Bank) $600,000

Credit 7% Notes Payable (Triple Creek Bank) $600,000

To record the renewal of notes payable with 7% notes.

Aug. 15 Debit 7% Notes Payable (Triple Creek Bank) $600,000

Debit Interest Expense $3,500

Credit Cash $603,500

To record payment on account with interest.

Aug. 30 Debit Notes Payable (Poulin Co.) $50,000

Credit Cash $50,000

To record payment on account.

Dec. 1 Debit Equipment $280,000

Credit 9% Notes Payable $200,000 (Greenwood Co.)

Credit Cash $80,000

To record the purchase of equipment with notes and cash.

Dec. 22 Debit Litigation Loss $40,000

Credit Litigation Claims Payable $40,000

To record the settlement of a product liability lawsuit.

Dec. 31 Debit Notes Payable (Greenwood Co.) $20,000

Debit Interest Expense $1,500

Credit Cash $21,500

To record first payment on account with interest.

Adjustments:

a. Debit Product Warranty Expense $65,000

Credit Warranty Liability $65,000

To record product warranty expense.

b. Debit Interest Expense $13,500

Credit Interest Payable $13,500

To accrue interest for the nine remaining notes.

Data Analysis:

Mar. 1 Inventory $225,000 Accounts Payable (Kirkwood Co.) $225,000 terms n/30.

Mar. 31  Accounts Payable (Kirkwood Co.) $225,000 Notes Payable (Kirkwood) $225,000 30-day, 8% note

Apr. 30 Notes Payable (Kirkwood) $225,000 Interest Expense $1,500 Cash $226,500

Jun. 1 Cash $600,000 6% Notes Payable (Triple Creek Bank) $600,000

a 45-day, 6% note.

Jul. 1 Equipment $50,000 Notes Payable (Poulin Co.) $50,000

60-day note to Poulin Co., which discounted the note at the rate of 6%.

Jul. 16 Interest Expense $4,500 Cash $4,500 7% Notes Payable (Triple Creek Bank) $600,000 6% Notes Payable (Triple Creek Bank) $600,000

Aug. 15 7% Notes Payable (Triple Creek Bank) $600,000 Interest Expense $3,500 Cash $603,500

Aug. 30 Notes Payable (Poulin Co.) $50,000 Cash $50,000

Dec. 1 Equipment $280,000 9% Notes Payable $200,000 (Greenwood Co.) Cash $80,000

Dec. 22 Litigation Loss $40,000 Litigation Claims Payable $40,000

Dec. 31 Notes Payable (Greenwood Co.) $20,000 Interest Expense $1,500 Cash $21,500

Adjustments:

a. Product Warranty Expense $65,000 Warranty Liability $65,000

b. Interest Expense $13,500 Interest Payable $13,500

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What is the duties of business before transaction?

Answers

Answer:

Social responsibility of business implies that corporate managers must promote the interests of all stakeholders not merely of shareholders who happen to be the so called owners of the business enterprises.

Explanation:

hope it helps you

3 advantages of etools it for digital marketing

Answers

Answer:

10 Advantages Of Digital Marketing Over Traditional Marketing

Low cost: Marketing and advertising cost is one of the biggest financial burdens that businesses have to bear. ...

Huge return on investment: ...

Easy to measure: ...

Easy to adjust: ...

Brand development: ...

Easy to share: ...

Precise targeting: ...

Global:

James took out a fixed-interest-rate loan when the CPI was 200. He expected the CPI to increase to 206 but it actually increased to 204. The real interest rate he paid is: ___________

a. higher than he had expected, and the real value of the loan is higher than he had expected.
b. higher than he had expected, and the real value of the loan is lower than he had expected.
c. lower then he had expected, and the real value of the loan is lower than he had expected.
d. lower than he had expected, and the real value of the loan is higher than he had expected.

Answers

The answer for this question is b

James took out a fixed-interest-rate loan when the CPI was 200. He expected the CPI to increase to 206 but it actually increased to 204. The real interest rate he paid is higher than he had expected, and the real value of the loan is lower than he had expected. Option (b) is correct.

What do you mean by Value?

Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity.

The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum). The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.

The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized.

Therefore, Option (b) is correct. Higher than he had expected, and the real value of the loan is lower than he had expected.

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what is one best motivational theory?

Answers

Answer:

The Maslow motivation theory

Explanation:

The Maslow motivation theory is one of the best known and most influential theories on workplace motivation

Plss help me NO LINKS AND I MEAN IT NO LINKS IF LINKS YOU WILL BE REPORTED AND DON'T DO IT JUST FOR POINTS

Companies perspective: I believe the benefits of gated content is giving content to a specific amount of people.

Customers perspective: The content is nice because, it gives me access.

Please answer the question picture above.​

Answers

Answer: No i would not

Explanation:

In the IRA form of a simple retirement account, employer's can contribute as much as they want into the employee's simple retirement account, even though the employee's contribution is limited to $13,500.

True or False and why. Links verifying this would be appreciated.

Answers

Answer:

true and i took the test (:

Explanation:

A growing trend for regulating natural monoplies is the use of incentive regulation. A) Describe how incentive regulation works to improve efficiency in the market. B) Describe how the company can benefit from incentive regulation. C) Discuss common problems that might exist with incentive regulation.

Answers

The government is known to regulate monopolies through Price capping where they reduce price increases.

A.   How incentive regulation works to improve efficiency in the market;

Incentive regulation is uses via regulatory tools, price setting regimes along with some self incentives. The efficiency improvement by incentive regulation is done through controllable costs, benchmarking and the setting of performance targets associated with both rewards and penalties.

Incentive regulation is the known way of conducting price level regulation. It also improves efficiency as it hinders or mitigate revenue erosion as it measures both inputs and outputs.

B. How the company can benefit from incentive regulation.

The benefits of the company is that it makes a lot of opportunities available for maximizing earnings via internal efficiency methods such as reduction in both capital and operating expenditures.

C. The common problems that might exist with incentive regulation.

Incentives regulation often brings about a number of challenges, such as;

Holding or maintaining incentives for cost reduction and still adjusting prices to underlying costs.  Prices need to be set so that the regulated firm benefits from cost reduction.It makes sure that firms have a good amount of assurance of cost-recovery, while limiting the length for “gold-plating as a result of set out or guaranteed returns on investment. In this way, organizations will only invest if sunk costs can be gotten back via retained cost savings. It makes sure that operators do not jump on quality.

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Amy convenes a meeting to rethink the organizational structure to avoid being beat to the market by a competitor again. Based on your initial impressions of the situation, which solution do you think might be more effective: increase formalization or reduce hierarchy

Answers

Amy should reduce hierarchy if she wants to avoid being beaten by competitors.

A reduction of hierarchy will realign the company to achieve its goals faster than operating with a formalized hierarchy. This restructuring or delayering is known as empowerment.

The advantages that Amy will achieve by delayering or reducing hierarchy include:

Simplifying the organization's management structuresReducing its bureaucracyCutting its communication pathsSpeeding up decision-makingPushing responsibility down to lower organizational levels (through empowerment).

Thus, Amy should rethink the organizational structure by reducing the hierarchy, making the decision-making process accessible.

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List any 5 prohibited activities during foreign employment.

Answers

Answer:

Some of the things that those who work abroad cannot do are:

1) Vote for a political candidate from that country.

2) Receive benefits from a public health provider.

3) You cannot practice in some cases the profession in which you worked in your native country, until you can obtain the certificate of studies updated to the standards of the country in which you now live.

4) You cannot access, in some cases, bank credit benefits

5) Take some additional type of training until you obtain all the legal and updated permits from the company where you now work.

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Explanation:

I hope this helps!

Has anybody taken this test before? What is the most financially dangerous way to pay for college?
Scholarships
Cash
Credit cards
Federal student loans

Answers

Answer:

well my dads a licensed student loan manager for UCB in CA and he said Federal Student Loans have FIXED INTEREST meaning no matter the change in other people loans your interest rate doesnt change. So it has to be credit cards.

Explanation:

Also credit cards dont have fixed interest rates so say today you have an 8% interest rate and next month it changes to 12% thats because of the fixed rate so in the near future you'd end up paying more in credit card tax then student loans. And student loans payment are negotiable , payments can be somewhat reasonable as for credit cards co.'s they take out a payment either way without you having a say in monthly change until you pay the loan off.

In my personal opinion I think its credit cards.

Give your opinions on this quote: To win a negotiation, you have to show you're willing to walk away. And the best way to show you're willing to walk away is to walk away (Michael Weston).

Answers

Answer:

The quote is pretty much true, and agreeable. If you want to win something, you gotta be able and willing to lose it. And the best way to show you're willing to do something? Do it.

Explanation:

^^

An ______is a being, such as a person or company.

Answers

Cooperation would be the best answer, if not then try looking it up

On November 1, 2019, Davis Company issued $30,000, six-year, 7% bonds for $29,340. The bonds were dated November 1, 2019, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. How much is the book value of the bonds after the November 1, 2020 interest payment was recorded using the straight-line method of amortization

Answers

Answer:

29,700 dollars is your answer

Explanation:

supposing mr john started business with 1,000,000 report financial 70,000 machineries 50,000 goods 500,000 rentage 200,000 what is the capital of the business? supposing Mr John took away 100,000 for his personal use it is called what? according to business entity capital is called what? according to business entity concept what are the assets of the company ​

Answers

ANSWER:

An accounting transaction is a business activity or event that causes a measurable change in the accounting equation. An exchange of cash for merchandise is a transaction. Merely placing an order for goods is not a recordable transaction because no exchange has taken place. In the coming sections, you will learn more about the different kinds of financial statements accountants generate for businesses.

In the previous section we described specific types of accounts that business activities fall into, namely:

Assets (what it owns)

Liabilities (what it owes to others)

Equity (the difference between assets and liabilities or what it owes to the owners)

These are the building blocks of the basic accounting equation. The accounting equation is:

ASSETS = LIABILITIES + EQUITY

For Example:

A sole proprietorship business owes $12,000 and you, the owner personally invested $100,000 of your own cash into the business. The assets owned by the business will then be calculated as:

$12,000 (what it owes) + $100,000 (what you invested) = $112,000 (what the company has in assets)

Tran, who was born in Vietnam, now lives in Los Angeles. She applies to be a waitress at Hooters. The manager of Hooters restaurant tells her, “Sorry, we rarely hire Asian girls because their breasts are too small and part of the Hooters’ image is waitresses with big breasts”. Does Tran have a valid claim against Hooters under the Civil Rights Act? Explain.

Answers

Answer:

No

Explanation:

The are objectifying her based on her body not restricting her freedom of speech or anything like that. PS. Who wrote that question just why why

Which of the following activities would waste the most time?
a. Rich tries to multitask writing a report and reading a memo, and has to re-write the report and
re-read the memo, which takes an hour.

b. During a departmental meeting, Barry and Scott make small talk for twenty minutes while the
other six meeting members sit and listen.

c. Greg asks Tony a question about work and then talks to him for ten minutes about who will
win the game tonight.

d. Barbara composes an e-mail during her thirty minute train ride to work.

Answers


Answer:A

The answer should be “A” because it does say it takes an hour and that seems like the most time consuming task out of all of them

True or False: The claim that some people made in the popular press is not consistent with the model in this chapter. True False True or False: The change in the real exchange rate that resulted from the decline in the quality of U.S. products may increase our standard of living. True False

Answers

Answer: true, false

Explanation:

What are 4 types of investments that offer compound interest?

Answers

Answer:

Savings Accounts

Rental Homes

Bonds

Stocks

:)

CDs. Considered a safe investment, certificates of deposit are issued by banks and generally offer higher interest than savings. ...
High-Interest Saving Accounts. ...
Rental Homes. ...
Bonds. ...
Stocks. ...
Treasury Securities. ...
REITs.

if someone wanted to find out how much money a company made during a particular year, the best financial statement to use would be the

Answers

Answer:income statement

Explanation:

If someone wanted to find out how much money a company made during a particular year, the best financial statement to use would be the income statement.

What is an income statement?

An income statement displays the revenues, costs, and profitability of a business over time. It is also sometimes referred to as an earnings statement or a profit-and-loss (P&L) statement. It describes the process by which the revenues, or "top line," are converted into net income or net profit. Managers and investors can determine whether a company made money (profit) or lost money (loss) during the reporting period by looking at the income statement.

A period of time is represented by an income statement. The balance sheet, on the other hand, only depicts one point in time. You may better comprehend your company's financial situation by comparing the income statement to the balance sheet, cash flow statement, and cash flow forecast.

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At June 1, 2018 Billy’s Fitness Company purchased new exercise equipment for its facility.
The following information refers to the purchase and installation of this equipment:
• The list price of the equipment was $640,000 less a cash discount of 5%.
Billy’s Fitness Company paid sales taxes of $36,480 at the date of purchase.
• Transportation charges for delivery of the equipment totaled $2,200.
• Costs for installation and test runs to ready the equipment for customer use
amounted to $1,600.
• Normal maintenance costs for the exercise equipment in June 2018 were $875.
Requirement:
For each of the bulleted items above, indicate which items should be included by Billy’s
Fitness Company as a part of the total cost of its Exercise Equipment account. Also briefly
indicate the proper accounting treatment of those items that are not included in the cost of
the Exercise Equipment

Answers

An indication of the bulleted items that Billy's Fitness Company should include in the cost of the Exercise Equipment account is as follows:

Equipment's List Price = $608,000

Sales Taxes                         36,480

Transportation cost              2,200

Installation and testing         1,600

Total  costs                  $648,280

Thus, the costs of normal maintenance of the equipment in June 2018 should not be included in the Equipment Account but treated as expenses in the income statement.

Data Analysis:

Equipment's list priceless discount = $608,000 ($640,000 x(1 - 5%)

Cash Discount = $32,000 (5% x $640,000)

Sales taxes included = $36,480

Transportation charges = $2,200

Installation and testing costs = $1,600

Maintenance costs =$875

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Which option helps minimize costs in a project?
O A. adjusting resources
OB. indentifying resources
Oc.
eliminating resources
OD. gathering resources

Answers

Answer:

c

Explanation:

po ang tamang sagon po

eliminating resources it saves money D would be incorrect because the key is making it less exspesive

compare the company profit performance and financial position with the average for the industry

Answers

Answer:

what average for the industry

Explanation:

can i have a choise

Research and find out about the changes in business sectors of Pakistan from 1947 to date. Give reasons for the changes you have identified. (10)

Answers

Answer:

Since Indian independence in 1947, the economy of Pakistan has emerged as a semi-industrialized one, the on textiles, agriculture, and food production, though recent years have seen a push towards technological diversification. ... Pakistan suffered its only economic decline in GDP between 1951 and 1952.

If Paul’s children run a lemonade stand for a day and sell 400 glasses of lemonade at $1.00 each, their total revenues are

a. $200.

b. $800.

c. $400.

d. $1.00.

Answers

Answer:

c

Explanation:

Because 400 × $1.00 = $400

Describe the role of supply, demand, and competition in a free enterprise system

Answers

Answer:

if a product is wanted for instance chocolate the price and demand will increase but the stock will drop

In Section 3.4, the text discusses the “Top 5 Challenge Trends” and “Top 5 Solution Trends.” Select one challenge and one solution trend which you believe is most applicable to Coke’s situation today. Describe how these trends apply to Coke. In Section 3.3, read about the five building blocks of a Learning Organization. Which one of the five building blocks should Coke focus on to capitalize on the trends you selected. Why?​

Answers

The challenges that Coca-Cola is facing are due to less quality water and the availability of the material for making the bottles.

From the complete information, it was stated that maintaining high-quality water and the maintenance of taste is essential to create quality drinks.

The challenges that were depicted are due to less quality water and the availability of raw materials. Also, there are challenges for increasing concern for the environment, faster pace of innovation, etc.

The solutions to the challenges include increasing collaboration, protection of the environment, energy sustainability, etc. It's also vital for individuals to be advised about the usage of water.

In conclusion, the building block that Coke should focus on to capitalize on the trend is systematic problem-solving.

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