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IgorC [24]
2 years ago
15

Assume that the public in the small country of Sylvania does not hold any cash. Commercial​ banks, however, hold 10 percent of t

heir checking deposits as excess​ reserves, regardless of the interest rate. In the questions that​ follow, the​ "money multiplier" is given by 1 / (RR + ER ).
Where

RR ​= the percentage of deposits that banks are required to keep as reserves
ER ​= the percentage of deposits that banks voluntarily hold as excess reserves

Consider the balance sheet of one of several identical​ banks:

Assets Liabilities and Net Worth
Reserves 400 Checking Deposits 2,000
Loans 1,600 Net Worth 0
Total Assets 2,000 Liabilities and Net Worth 2,000

The required reserve ratio in this economy is _________​%. ​(Enter your response as an integer​.)
If the total money stock (supply) is $600,000, the total amount of reserves held in the banking system is_____ $
Business
1 answer:
sdas [7]2 years ago
5 0

Answer and Explanation:

The computation is shown below:

(1) The required reserve ratio is

= Required reserves ÷ Checkable deposit

where,

Required reserves

= Total reserves - Excess reserves

= 400 - 2,000 × 10%

= $400 - $200

= $200

And, the checkable deposit is $2,000

So, the required reserve ratio is

= $200 ÷ $2,000

= 10%

(2) Now the total amount of reserves is

But before that first we have to determine the money multiplier is

Money multiplier (MM) = 1  ÷ (ER + RR)

= 1  ÷ (0.10 + 0.10)

= 1 ÷ 0.20

= 5

Now

Monetary base (MB) is

= Money stock  ÷ Money multiplier

= $600,000 ÷ 5

= $120,000

And as we know that

Monetary base = Currency + Reserves, and Currency (i.e held by public) = 0

So,

Reserves = Monetary base = $120,000

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Hi, Sierra,
hichkok12 [17]

Answer:

Question requires that you find five sentence fragments, one dangling modifier, one passive-voice sentence, and one parallelism fault.

Sentence Fragment

A sentence fragment is so because it is either missing a subject, or a verb, and/ or a complete thought. It is therefore an incomplete sentence.

  • 5. Although no clear line separates fun from profit or a hobby from a business.
  • 12. If you spend eight or more hours a day trading on eBay.
  • 17. If you spend $5 for a garage sale vase and sell it for $50.
  • 18. The IRS would probably consider this a business transaction.
  • 20. Even for eBay sellers who are just playing around. (not a proper sentence)

Dangling Modifier

Attempts to modify an unclear word in the sentence

  • 19. All profits are taxable.

It is unclear what profits the sentence alludes to.

Passive-voice sentence

In Passive voice, the subject of the text is the one that is being acted upon.

  • 13. The IRS would tend to think you are in a business.

Parallelism Fault

This occurs when the sentence is not grammatically parallel. In other words the sentence does not follow as it is not using the same structure.

  • 3. As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business.
5 0
2 years ago
Which of the following is an incorrect statement regarding Bonus Depreciation? A. Bonus Depreciation is useful to very large bus
daser333 [38]

Answer:

C. Bonus Depreciation only covers new equipment.

Explanation:

Bonus depreciation is the depreciation provided on additional capital investment. This is depreciation for tax base calculation, where any purchase of eligible asset is depreciated extra that means the purchase price is allowed as standard deduction in first year of it's purchase.

There is no such primary condition that the asset shall be new equipment only.

Therefore, incorrect statement is C

8 0
2 years ago
A​ 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of​ $1,000 in five years. Today​ (year 0) the equi
zavuch27 [327]

Answer:

$650

Explanation:

Guaranteed Residual Value = FV = $1,000

Interest rate = r = 9% = 0.09

Number of years = n = 5 years

Using Following formula we can calculate today's worth of the engine.

Residual value after 5 years = Today's value x ( 1 + rate of interest )^number of years

FV = PV x ( 1 + r )^n

$1,000 = PV x ( 1 + 0.09 )^5

PV = $1,000 / ( 1.09 )^5

PV = $649.93

PV = $650 (rounded off to the nearest whole number)

5 0
2 years ago
Companies attempted to intimidate union organizers by
vaieri [72.5K]
Companies attempted to intimidate union organizers by Blacklisting Them

Companies that exist within an area may created some sort of list of employees that involved in organizing the union. This list of names could be passed to other companies so those companies would not want to hire them because of the problems that they may have cause
4 0
2 years ago
Read 2 more answers
The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by _
aleksandr82 [10.1K]

Answer:

The correct answer is letter "A": the social business environment.

Explanation:

The social business environment includes the society inhabitants' believes, customs, and lifestyles. It determines how businesses are handled in different regions worldwide. When it comes to low costs of labor, it might be beneficial for some companies that can open subsidiaries there to lower production costs but it also represents a struggle for some other firms because their products seem unreachable because of the low wages people earn.

7 0
2 years ago
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