answer.
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
Lena [83]
2 years ago
14

You take $150 you had kept under your mattress and deposit it in your bank account. Suppose this $150 stays in the banking syste

m as reserves and banks hold reserves equal to 12.5 percent of deposits. The total amount of deposits in the banking system increases by_______, and the money supply increases by______.
Business
1 answer:
iogann1982 [59]2 years ago
3 0

Answer:

The answer is $12.

Using the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Therefore, the total money created in the banking system is $12. From the above, it could be rightly said that creation of money by banks is a process whereby the banks received deposit from customers and give the deposit to borrowers in the form of loan after deducting cash or reserve ratio.

You might be interested in
Two fatal flaws can render a business model untenable from the beginning. These are:
bixtya [17]

Answer:

The correct answer is the option A: failure to complete a business plan and failure to get funding.

Explanation:

To begin with, if an entrepreneur failures to complete a business plan and to get funding then the most probable thing to happen is that his business will be untenable from the beginning due to the fact that if the person do not possesses money and a plan to put his ideas in action he will never achieve his primary goals, that is, obtaining profits at long term. Therefore that if there is no business plan in which the company must focus and there is no money to carry out that strategy then the business model is doomed.

6 0
1 year ago
You would like to have $50,000 saved at the end of Year 5. At the end of Year 2, you can deposit $7,500 for this purpose. If you
Helen [10]

Answer:

The amount that should be deposited today is $33254.58

Explanation:

The deposit should be such that the future value of the deposit made today and at the end of year 2 should be equal to $50000 after 5 years. Let the deposit made today be x. The equation for the future value will be,

50000 = x * (1+0.045)^5  +  7500 * (1+0.045)^3

50000 = x *  (1.045)^5  +  8558.745938

50000 - 8558.745938  =  x * (1.045)^5

41441.25406 / (1.045)^5  =  x

x = $33254.57769 rounded off to $33254.58

5 0
2 years ago
When a government introduces regulations addressing worker safety and environmental protection, it affects businesses and consum
Masteriza [31]
When a government introduces regulations addressing worker safety and environmental protection, it affects businesses and consumers.Businesses face Higher cost because the must alter existing infrastructure to<span> meet regulations. As a result, consumers pay more for the same produced goods.

Hope this helps!</span>
6 0
2 years ago
Which best describes the role of financial planning?
STatiana [176]
You invest and save
6 0
1 year ago
Botox Facial Care had earnings after taxes of $340,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $74
scoundrel [369]

Answer:

$1.7; 44 times

Explanation:

a) EPS(20X1):

= Earnings after taxes / Number of shares

= $340,000 / 200,000

= $1.7

P/E ratio(20X1):

= Price / EPS

= $74.80 / $1.7

= 44 times

EPS(20X2):

= Earnings after taxes / Number of shares

= $378,000 / 200,000

= $1.89

P/E ratio(20X2):

= Price / EPS

= $83.00 / $1.89

= 43.92 times

3 0
2 years ago
Other questions:
  • You have $100,000 to donate to your college. you want to endow a perpetual scholarship that makes its first payment in 1 year. i
    12·1 answer
  • There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One cu
    9·1 answer
  • Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was esti
    5·1 answer
  • Based on what you learned so far, what options can you think of to deal with the stray animal problem in Townsville?
    11·1 answer
  • A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fa
    8·1 answer
  • Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as
    8·1 answer
  • If a company spends $20 million to install new footwear-making equipment with capacity to produce 1 million pairs of athletic fo
    15·1 answer
  • On April 1, 10,000 shares of $20 par common stock were issued at $24.
    6·1 answer
  • During its first year of operations, Anthony Lupa set up Lupo Inc. and invested $15,000 in the corporation. The company earned $
    8·1 answer
  • Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each ye
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!