Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Deposits? What is the Money Supply? Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase? Please enter your answers as numerical responses (ie. 100 or $100 not "One Hundred Dollars")

Answers

Answer 1

Answer:

What is the Value of Bank Deposits?

bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000

What is the Money Supply?

money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000

Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?

if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250

total money supply = $2,000 - $250 = $1,750


Related Questions

Mr. Gomez is a company president who inspires his workers to be their very best and achieve high accomplishments. He encourages them to trust their capabilities and be confident. Mr. Gomez is exhibiting:____________.
a. inspirational motivation
b. charisma
c. developmental value
d. managerial prowess

Answers

Answer:

c is the correct answer

There are different kinds of leaders. Mr. Gomez is exhibiting Charisma.

Charismatic authority is known to be a type of leadership created by the German sociologist Max Weber. It is an organization setting where leadership authority gets it power from the charisma of the leader.

This type of leadership is when a leader uses charismatic qualities to inspire followers. Example is Martin Luther King Jr.

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If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates

Answers

Answer:

a. Increase / Increase

Explanation:

Since in the question it is mentioned that there is an increase in taxes and government spending so it represents the positive stimuls as it occurs because the government incurrent all the revenue for the public welfare due to which there is a rise in the government expenditure that boost the aggregate demand also the GDP value would be rise because of the multiplier effect

Therefore the employment level and the rate of interest would also increased

Answer:

The correct answer was increase / no change

Explanation:

Just took the test

Here I Sit Sofas has 7,500 shares of common stock outstanding at a price of $98 per share. There are 760 bonds that mature in 34 years with a coupon rate of 7.2 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 110.5 percent of par. The company also has 6,400 shares of preferred stock outstanding at a price of $51 per share. What is the capital structure weight of the debt

Answers

Answer:

61.28%

Explanation:

Equity market value = Number of shares*price/share

Equity market value  = 7,500 * $98

Equity market value = $735,000

Current debt value = Number of bonds*price/bond

Current debt value = 760*(1.105*2000)

Current debt value = $1,679,600

Preferred stock value = Number of shares*price/share

Preferred stock value = 6,400 * $51

Preferred stock value = $326,400

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $735,000 + $1,679,600 + $326,400

Total capital = $2,741,000

Weight of debt = Debt value / Total capital

Weight of debt = $1,679,600 / $2,741,000

Weight of debt = 0.6127690623859905

Weight of debt = 61.28%

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation:___________.a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.b. the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes.c. the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook.d. this is a bailment for the sole benefit of the bailee.

Answers

Answer:

a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.

Explanation:

When a party comes into possession of a property not by contractual agreement, they are referred to as constructive bailee and are obligated to take care of the property till it is returned to the owner.

The bailee does not willingly take possession of the property, rather unforseen circumstances leads to them possessing it.

This is common when a person forgets his property in a place.

In the given scenario the college (Dean of Business College) became a constructive bailee when they recieved the misplaced textbook. So they are obligated to care for the textbook till it get back to Lacy or be held liable for any harm done

****ECONOMICS****Which situation is an example of a person making use of credit?

A. A mechanic borrows money from a bank to buy a new set of
expensive tools.

B. A farmer changes the type of crops she grows to make a greater
profit.

C. An architect puts his weekly paychecks into a savings account at
a local bank.

D. A college student saves money in order to buy a cheap used car.

Answers

Answer:

A.

Explanation:

Using credit is borrowing.

The situation that represents the example of using credit is borrowing some money for purchasing expensive tools.

The following information does not relate to the usage of credit:

When the types of crops vary for the highest profit. When the architect puts the weekly paychecks at the local bank.And, when the college student saved the money for purchasing the cheap and used car.

Based on the above information we can conclude that the situation that represents the example of using credit is borrowing some money for purchasing expensive tools.

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Studies have shown that the single greatest factor preventing travelers from taking a group tour is their aversion to airline travel.

True or False

Answers

Answer:

True

Explanation:

im not sure qwq

The aggregate planning approach that lends itself to examining many solutions is:_________
A. the transportation method of linear programming.
B. graphical techniques.
C. the linear decision rule.
D. Bowman's management coefficients model.

Answers

Answer:

B. graphical techniques.

Explanation:

The graphical methods would be applied in the case when the facts are assessed in a quantitive way. Also it is a main part for the investigation that contains exploratory information

Therefore in the given situation, for examining many solutions under the aggregate planning approach the graphical techniques would be considered

hence, the correct option is B

Suppose Rhonda owns and operates a surf shop. Last week, Rhonda ran a 30-percent off sale on all items in her shop and her revenues decreased by 35 percent. Everything else held constant, it can be concluded with certainty that Rhonda's customers' demand is:________.
A. price inelastic
B. price elastic
C. unit elastic

Answers

Answer:

Explanation:

price elasticity of demand = percentage change in quantity demanded / percentage change in price

revenue = price x quantity

if price decreased by 30% and total revenue decreased by 35%, then PED is inelastic

a will show you in an example

original price = $10

original quantity = 100

if PED was unit elastic

= 30% / -30% = -1, sales volume increased by 30%

total revenue went form $1,000 to $910

if PED was elastic

= 50% / -30% = -1.7, sales volume increased by more than 30%, lets say 50%

total revenue went from $1,000 to $1,050

if PEd was inelastic

= 10% / -30% = -0.33, sales volume increased by less that 30%, lets say 10%

total revenue went from $1,000 to $770

the more inelastic, the larger the decrease in total revenue

The demand of Rhonda's customers would be characterized as:

A). Price Inelastic

"Price Inelastic demand" is described as the demand in which the demand remains a little affected by a bigger change in the price of that product or commodity. In the given situation, the demand for the surf at Rhonda's shop would be considered price inelastic because, despite the 30% off, the revenue of her shop decreased. This implies that the surf exemplifies an essential item and its consumers are not much affected by the fall in the price.

Thus, option A is the correct answer.

Learn more about "Elasticity of Demand" here:

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Black Guard Security has annual sales of $373,000 and a collection period of 20.74 days. What is the company's average balance in accounts receivable

Answers

Answer:

$21,195

Explanation:

With regards to the above, recall that average collections period is accounts receivable divided by average daily sales.

Average collections = Accounts receivable / Average daily sales

Where;

Average sales = Annual Sales / Total number of days in a year

Given that;

Average collections period = 20.74

Accounts receivable = ?

Average daily sales = $373,000 / 365 = 1021.9178082

Therefore, the company's average

balance in accounts receivable would be;

20.74 = Accounts receivable / 1021.9178082

Accounts receivable = 20.74 × 1021.9178082

Accounts receivable = 21194.575342

Accounts receivable = $21,195 approximated.

On August 1, a $39,600, 8%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $15,366.13. The entry to record the first payment on July 31 would include: Multiple Choice Debit to Cash of $15,366.13. Credit to Notes Payable of $15,366.13 Debit to Interest Expense of $3,168.00. Debit to Notes Payable of $15,366.13 Credit to Cash $12,198.13

Answers

Answer:

Debit to Notes Payable of $15,366.13

Explanation:

The Notes Payable are debited and Cash is Credited. This is done to show the decrease in the Liability and a decrease in Assets as a result of the repayment.

Monopoly firms face a. downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve. b. horizontal demand curves, so they can sell only a limited quantity of output at each price. c. horizontal demand curves, so they can sell as much output as they desire at the market price. d. downward-sloping demand curves, so they can sell as much output as they desire at the market price.

Answers

Answer:

Option d (downward..................................market price) would be the right approach.

Explanation:

The monopoly is attributed to the idea that an organization and therefore its distribution channels control one market or business. Monopolies may be called a social consequence of unlimited access competition and therefore are frequently further used to characterize an organization that had already absolute or relatively close market power.

Other options aren't connected to something like the situation in question. So the above alternative seems to be the right one.

If Smart Touch Learning increases its production of tabletâ computers, what will be the effects on the variable and fixed costs perâ tablet?

Answers

Answer:

D. variable costs per tablet is constant, fixed costs per tablet decrease

Explanation:

The variable cost is that cost that changes with the output level but would remains the same at per unit. While on the other hand the fixed cost is the cost that remains fixed whether there is an increase or decrease in the output level

Therefore as per the given situation, the variable cost per tablet would remain constant while the fixed cost per table would reduce

hence, the correct option is d.

Two major concerns of Management Accounting are:
a. Controlling and Executing.
b. Controlling and Investigating.
C. Planning and Controlling.
d. Planning and Investigating.

Answers

C




Hope this helps




Hope

When a finalist does not get a job offer, they are likely to perceive ________.

a. low procedural fairness
b. low distributive fairness
c. low interactional fairness
d. high interactional fairness

Answers

Answer:

b. low distributive fairness

Explanation:

Staffing is simply ways or means of acquirement, deployment, and retainant of a workforce of sufficient quantity and quality so as to give or bring about (create) positive impacts on the organization's/firm effectiveness. There are Three types of justice. They are: Distributive, procedural, and interactional. Distributive justice is based on perceived fairness of decision-making outcomes.

Distributive fairness is the perceived fairness of the hiring or promotion outcome.. when distributive justice is low, it means that there is a lack of fairness that people are getting rewarded what they should.

Your brother has been offered a project paying a $725 annuity due for the next 15 years. What is the maximum amount of money your brother should invest in this project if he has a 12.45 percent rate of return on the investment?
a. $124.73
b. $4,821.50
c. $2,985.03
d. $5,421.78

Answers

Answer:

d. $5,421.78

Explanation:

We need to calculate the Net Present Value using the Internal Rate of Return given on this project. This would give us the maximum amount of money your brother should invest in this project. By doing this, we get the Initial cost that equals the present value of the annual cashflows and this is the maximum that can be invested.

Using a Financial Calculator, the Net Present Value will be calculated as follows :

Use the CFj function

$725             CFj

Nj                  15 (for number of years)

i                     12.45 %

Shift NPV = $5,421.78

Therefore,  the maximum amount of money your brother should invest in this project is $5,421.78.

Assuming that an investor requires a 10% annual yield over the next twelve years, how much would she be willing to pay for the right to receive $20,000 at the end of year 12?

Answers

Answer:

the present value is $6,372.62

Explanation:

The computation of the amount that willing to pay is shown below

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$20,000 = Present value × (1 + 0.10)^20

$20,000 = Present value × 3.13842837

So, the present value is

= $20,000 ÷  3.13842837

= $6,372.62

hence, the present value is $6,372.62

We simply applied the above formula so that the correct value could come

And, the same is to be considered

A firm has a return on equity of 16 percent. The total asset turnover is 1.5 and the profit margin is 9 percent. The total equity is $3,500. What is the net income?

Answers

Answer:

the net income is $560

Explanation:

The computation of the net income is shown below;

Return on equity (ROE) = net income ÷ total equity

16% = net income ÷ $3,500

net income = $3,500 × 16%

= $560

hence, the net income is $560

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Magix Productions orders new equipment for the company. The new equipment costs $50,000 and will help the company to save $10,000 annually. What is the average rate of return of the equipment?
A. 15 percent
B. 20 percent
C. 35 percent
D. 40 percent

Answers

Answer:

B. 20 percent

Explanation:

The computation of the average rate of return of the equipment is shown below:

= Average net profit or savings ÷ average investment

= ($10,000 ÷ 2) ÷ ($50,000 ÷ 2)

= $5,000 ÷ $25,000

= 20%

hence, the average rate of return of the equipment is 20%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are paid semiannually. The bond is currently selling for $828 per $1,000 bond. What is the cost of debt?
a. 8%
b. 9%
c. 10%
d. 11%
e. 12%

Answers

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

Economies of scale are associated with:________
a. indivisible setup costs.
b. diminishing marginal productivity.
c. zero setup costs.
d. the short run.

Answers

Answer:

b. diminishing marginal productivity.

Explanation:

Economies of scale means that as total output increases, the average total cost per unit decreases. This continues until a point where marginal costs will start to increase as well as average total cost per unit. In other words, marginal productivity decreases as total output increases, and at one point it will become negative.

According to Miller and Modigliani, in a world without taxes or the possibility of bankruptcy, the value of a firm with debt is.:_____

Answers

Answer:

the same as the value of a firm without debt.

basic premise is:

V levered = V unlevered

Explanation:

The Miller and Modigliani theory was developed for a tax free world. Its application on normal everyday life and reality is limited. Markets are not efficient and decisions are not always rational. It is a very good model form a theoretical point of view, but theory is not the same as reality.

Define rivalry and excludability and use these terms to discuss the four categories of goods. Rivalry is the situation that occurs when

Answers

Answer:Rivalry is the situation where there is competition between markets on determining who gets the customer base or who wins the customers heart.

While excludability could be defined as a situation where goods are limited or exclusive to only customers who pay

Explanation:

Rivalry is the situation where there is competition between markets on determining who gets the customer base or who wins the customers heart.

Excludability could be defined as a situation where goods are limited or exclusive to only customers who pay

-A private good is both a rivalry and excludability good because it includes things such as: food, clothing, or a haircut.

-A public good is neither rival nor excludable, because their often supplied by the government such as national defense.

-A quasi-public good is excludable, including things such as cable, internet, or iPhones.

-A common resource is rival, including things such as forest land.

In Maslow's hierarchy, managers must first ensure a person's _______ needs are fulfilled in order to have a motivated workforce.
a. esteemb. belongingnessc. physiologicald. sociale. self-actualization

Answers

Answer:

c. Psychological

Explanation:

Maslow's heirachy of needs states that people are driven to find a job or a means of livelihood because of various motivation factors. These needs must be satisfied before a person looks to obtain other less important needs.

The first level of needs are the psychological needs. These have to be satisfied before an employee will look to other needs.

They include man's basic needs to live like food, shelter, and clothing.

After these are satisfied one can now focused on security needs, social needs, esteem needs, and self actualization.

Your Boston-headquartered manufacturing company, Wruck Enterprises, obtained a 54-million-peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico, plant. The exchange rate was 14 U.S. cents per peso when you took out the loan, but since then the exchange rate has dropped to 7 U.S. cents per peso. Has Wruck Enterprises made a gain or a loss due to the exchange rate change, and how much

Answers

Answer: 3.78 million dollars

Explanation:

Based on the information given in the question, the amount of money that Wruck Enterprises would pay when the exchange rate is 7 US cents per peso would be:

= 54-million × 7 cent

= 378,000,000 cent

= 3.78 million dollars

When the exchange rate was 14 U.S. cents per peso , the amount paid would have been:

= 54 million × 14 cent

= 756,000,000 cent

= 7.56 million dollars

Therefore, Wruck Enterprises made a gain of (7.56 million - 3.78 million) = 3.78 million dollars

In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

Answers

Answer:

Multi-level marketing.

Explanation:

A business organization that is run with multi-level marketing strategy typically has 3 sources of income:

- The amount of money that each person have to pay in order to gain the membership status.

- The amount of money that memberships owners have to pay to be a distributor of their product

- The amount of money that they get from the sales of their product.

Most multi-level marketing companies will provide their members with some sort of 'Reward' if they managed to convert other people into purchasing memberships to organization. So, the more their members convert other people, the more wealthy that members will be. This will create a hierarchy like within an organization where the members who bring the most memberships place at the top of the hierarchy.  

A time draft is a negotiable instrument, which means that it:_______
a. is also known as a bill of lading.
b. has no value given the deferred nature of the document.
c. can be sold to an investor.
d. cannot be transferred.
e. is generally not preferred in international transactions.

Answers

Answer:

c. can be sold to an investor.

Explanation:

The time draft would permits the draft bearer having two options that involved to sell it at a discount prior to the maturity time or hold it till maturity in the case when the amount is fully paid

Therefore as per the given situation, the time draft means that it could be sold to an investor

hence, the correct option is c

ANd, the rest of the options are wrong

The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows: Direct materials $92 Direct manufacturing labor 32 Variable manufacturing overhead 12 Fixed manufacturing overhead 32 Sales commissions (2% of sales) 26 Administrative salaries 6 Total $200 What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost

Answers

Answer:

81%

Explanation:

Variable cost per unit = Direct material + Direct manufacturing labor + Variable manufacturing overhead + Sales commission

Variable cost per unit = $92 + $32 + $12 + $26

Variable cost per unit = $162

Total cost per unit = $200

Percentage of variable cost per unit to Total cost per unit = Variable cost per unit/Total cost per unit = 162/200 = 0.81 = 81%

Baker is single and earned $225,200 of salary as an employee in 2018. How much should his employer have withheld from his paycheck for FICA taxes? (Rounded to the nearest whole dollar amount)
A) $11,453
B) $10,861
C) $10,415
D) $15,892

Answers

Answer: $11,453

Explanation:

In 2008:

FICA-Social Security tax was payable at 6.2% of a limit of $128,400.

FICA-Medicare tax was payable at 1.45% of the total amount of $225,200.

Additional Medicare tax was payable on any amount in excess of $200,000 at 0.9%.

= (6.2% * 128,400) + (225,200 * 1.45%) + ( (225,200 - 200,000) * 0.9%))

= $11,453

All member states of the European Union apply a single set of tariffs, called the ____ tariff, on goods imported from outside the European Union

Answers

Answer:

Common Customs

Explanation:

A tariff is a form of tax levied on the import of goods and services. It is used to regulate the import of goods.

Tariffs are used to regulate imports as they increase the price of imports

Net capital outflow measures the imbalance between the amount of a. foreign assets held by domestic residents and domestic assets held by foreign residents. b. foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners. c. foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners. d. None of the above is correct

Answers

Answer:

b) the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.

Explanation:

Net capital outflow can be regarded as net flow of invested funds in country abroad by a home country during a particular period of time. It should be noted that the Net capital outflow measures the imbalance between the amount of the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.

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