Suppose you deposit $1,000 in a bank and the reserve requirement is 0.25. If the banking system has zero excess reserves, then the total amount of money that can be created is

Answers

Answer 1
the additional money created is 0.25 x $1000 = $250 so add that to the deposit: $1000 + $250 =$1250 created
Answer 2

According to the Money Multiplier theory, the central bank can change the supply of money to the economy by changing the reserve requirements.

What do you mean by Money Multiplier?

The total amount of money in a commercial bank is created, in general, the number of stocks multiplied by a set amount of central bank money (multiplier).

If banks do not have excess deposits, the total withdrawal amount is the same as the repayment deadlines. Theoretically, banks will never have a surplus.

[tex]\rm\,money \; multiplier = 1/ r \\\\ \rm\,money \; multiplier = 1/0.25\\\\ \rm\,money \; multiplier = 4\\\\(r = reserve \;requirement)[/tex]

So, if I know that the multiplier rate is 4, then if the central bank creates the reserve requirement at 0.25 then the amount that will be kept as reserve will be 0.25 multiplied by 1000 which is $250.

Thus, the total amount of money that can be created will be a multiplier multiplied by 1,000 which is 4*1,000 = $4,000.

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Related Questions

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $8,200 and is expected to run for 7 years; Model B is more expensive, with a price of $13,600, and has an expected life of 9 years. The annual maintenance costs are $760 for Model A and $740 for Model B. Assume that the opportunity cost of capital is 9 percent. Calculate equivalent annual costs (EAC) of each models.

Answers

The equivalent annual costs of each model are as follows:

                                                Model A       Model B

Equivalent annual costs     $2,389.26   $3,008.47

Data and Calculations:

                                              Model A       Model B

Costs of motorcycle              $8,200        $13,600

Expected years of usage      7 years        9 years

Annual maintenance costs    $760          $740

Cost of capital = 9%

Annuity factor                       5.03295        5.99524

PV of annual maintenance  $3,825.04   $4,436.48

Total NPV of costs             $12,025.04  $18,036.48

Equivalent annual costs   $2,389.26  $3,008.47

                          ($12,025.04/5.03295)  ($18,036.48/5.99524)

Thus, the equivalent annual costs of each model are the dividend of the Total NPV costs divided by the Annuity Factor.

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explain element of business plan​

Answers

Answer:

mark me as brainlest plzz

Explanation:

It should include a mission statement, a brief history of your business, and the highlights of your company's growth, your product or service and a summary of future plans. It also should explain why you are seeking financing and information about your banking and currency investors.

Firm I has been selling its products through a distributor for some time. It has become the market share leader. Unfortunately, this distributor has not been able to keep up with the evolving technology and customers are complaining. There are no alternative distributors available. Should Firm I keep its current distributor or should it begin distribution on its own?

Answers

Firm I should  begin distribution on its own in order to prevent loss and

liquidation of the company.

It is best for the company to become vertically integrated in instances such

as this. Vertical integration involves companies controlling more than one

stage of production.

By so doing, the company can restrategize and ensure its products satisfy

the customers through the adoption of the technology they are complaining

about. This helps to ensure increased profit made from the goods.

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John's uncle donated a truck to his company, John's Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $60,000. The journal entry by John's Corporation to record this donated asset will include a:

a. debit Truck for $95,000 and credit Gain for $35,000.
b. debit Truck for $60,000 and credit Gain for $20,000.
c. debit Truck for $60,000 and credit Gain for $60,000.
d. debit Truck for $95,000 and credit Gain for $95,000.

Answers

Based on the information given the appropriate journal entry  by John's Corporation to record this donated asset will include a: c. debit Truck for $60,000 and credit Gain for $60,000.

Since the truck donated to his corporation has a fair value of the amount of $60,000 which is the worth of the truck (assets) which means that the appropriate journal entry to record the transaction will be:

Debit Truck  $60,000

Credit Gain $60,000

(To record asset donated)

Inconclusion the journal entry  by John's Corporation to record this donated asset will include a: c. debit Truck for $60,000 and credit Gain for $60,000.

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What is one major measure of economic growth?

Answers

Answer:

yo mama

Explanation:

yo mama's so ugly, she made a blind kid cry.

Which strategy for managing quality relies on input from employees, suppliers and customers

Answers

Answer:

total quality management (tqm)

Explanation:

hope it helps you

Using your credit card more means your debt will
A. stay the same
B. decrease
C. disappear
D. increase

Answers

Using a credit card will increase your personal debt.

Answer: D. Increase

5 year plan example for high school seniors

Answers

[tex] \huge{ \underline{ \underline{ \mathtt{ \purple{A} \pink{N} \green{S} \blue{W} \red{E} \orange{R}}}}}[/tex]♡

A five year plan is a list of priorities you would like to accomplish over the next several years. As well as actions you can take when you make mistakes, so that you can still meet those goals.

Hope it helps

Harper Motors sells 32 cars per month at an average price of $24,360. The carrying cost per car is $144 and the fixed order cost is $687. How many orders should the company place per year

Answers

The number of orders that the company should place per year is 6.34 orders.

Economic order quantity (EOQ) = (2* yearly demand*per order fixed cost/carrying cost per unit)^(1/2)

Economic order quantity (EOQ) = (2*(32*12)*687/144)^(1/2)

Economic order quantity (EOQ) = (2*384*4.7708)^(1/2)

Economic order quantity (EOQ) = 60.530772339

Economic order quantity (EOQ) = 60.53

Number of orders to be placed = Yearly demand / EOQ

Number of orders to be placed = (32*12)/60.53

Number of orders to be placed = 6.3439616719

Number of orders to be placed = 6.34 orders.

Therefore, the number of orders that the company should place per year is 6.34 orders.

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Uhhhh..... can someone help me plz

Katrina graduated from college with a degree in veterinary science. She also has an interest in law enforcement. What company might be interested in hiring Katrina?
Question 5 options:


a government building looking for a security officer


a city government in need of an animal control officer


a county commissioner looking for an executive assistant


a large bank in need of a network manager

Answers

Definitely the second option I would say.
Second option most definitely

You receive a $15,000 signing bonus from your new employer and decide to invest it for 2 years. Your banker suggests two alternatives, which both require a commitment for the full 2 years. The first alternative will earn 8% per year for both years. The second alternative earns 6% for the first year and 10% for the second year. Interest compounds annually. Which would you choose? Justify your choice by the calculations.

Answers

Answer:

8% plus 8%

Explanation:

8% plus 8% will yield 16.64% total and the 6% and 10% yields 16.60% total

Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes, then in the short run, real GDP will:____.
a. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
b. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
c. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.
d. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.

Answers

Suppose the economy is in the long run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes then in the short run, real GDP will

fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.

Given that this economy is in the long run equilibrium. Given a sharp increase in minimum wage and taxes, then real GDP will decrease in the short run as well as the price level.

In the long run it may stay the same. But the Real GDP will definitely be lower.

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Prepare journal entries to record the following under
(a) the direct write-off method and
(b) the allowance method. May 3 Sal Company determines that it cannot collect its accounts receivable of $2,000 from Joey Company. May 21 Sal Company unexpectedly receives payment of $2,000 cash from Joey Company toward its previously written-off account. Sal records recovery of this bad debt.

Answers

The  journal entries to record the direct write-off method and  the allowance method are:

Journal entries

a. May 3

Debit Bad debt $2,000

Credit Account receivable- Joey Company $2,000

b. May 21

Debit  Accounts Receivable—Joey Company $2,000

Credit Allowance for Doubtful Accounts $2,000

Debit Cash $2,000

Credit  Accounts Receivable—Joey Company $2,000

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What is 48976897617xitself

Answers

Answer:

Hey mate....

Explanation:

This is ur answer....

Wth....Is that even a question....Imao

Well I am getting this....

2.39873650E+21

Hope it helps!

Brainliest pls!

Follow me! :)

If a process only has random variations, then 95.5% of the time the sample averages will fall within approximately

1 standard deviation of the population mean

2 standard deviation of the population mean

3 standard deviation of the population mean

4 standard deviation of the population mean

Answers

The answer is 3 standard deviation of the population mean

Magnus was just reprimanded by his supervisor for sending personal emails and shopping online during company time. Magnus was reprimanded for:

Answers

Answer:

khana iridium 88 egg e

Explanation:

d run jdd

At a single-phase, multiple-channel service facility, customers arrive randomly. Statistical analysis of past data shows that the interarrival time has a mean of 20 minutes and a standard deviation of 4 minutes. The service time per customer has a mean of 15 minutes and a standard deviation of 5 minutes. The waiting cost is $200 per customer per hour. The server cost is $25 per server per hour. Assume general probability distribution and no buffer capacity restriction

Required:
a. Find the optimal number of servers to be employed to minimize the total of waiting and server costs.
b. Find the average waiting time and the average total time through the system for the optimal case.
c. Find the cost per hour, average waiting time, and average flow time for one server if the probability distributions for the interarrival time and service time are assumed to be exponential and the mean values remain the same. .

Answers

Cost per hour with one server = $ 59.00

Cost with 2 servers = $ 52.19

Cost with 2 servers = $ 75.40

Total cost with 2 servers is the lowest ($ 52.19). Therefore, two servers are optimal.

b) With 2 servers,

Average waiting time, Tq = 0.2188 minutes

Total time = Tq+p = 0.2188+15 = 15.2188 minutes

c) Arrival rate, \lambda = 60/20 = 3 per hour

Service rate, \mu = 60/15 = 4 per hour

Lq = \lambda 2/(\mu*(\mu-\lambda)) = 32/(4*(4-3)) = 2.25

Cost per hour = Lq*Cw+Cs = 2.25*200 + 25 = $ 475

Waiting time, Wq = Lq/\lambda = 2.25/3 = 0.75 hour = 45 min

Flow time = Wq+1/\mu = 0.75+1/4 = 1 hour = 60 min

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Coat. Labor costs will go from $2.95 to $3.55 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Coat would need to be sold next round to break even on the product

Answers

Based on the fact that Chester decides to absorb the new labor cost, the units needed to breakeven would be 1,566 units.

The current fixed costs are $8,346.

The current contribution margin is $11,401

The units sold are:

= Sales / Selling price

= 30,785 / 16

= 1,924 units

The new contribution margin would be:

= Current contribution margin - Increase in labor costs

= 11,401 - ( (3.55 - 2.95) x 1,924)

= $10,255.60

Breakeven point is:

= Fixed costs / Contribution margin per unit

= 8,346 / (10,255.60÷ 1,924 units)

= 1,566 units

In conclusion, the breakeven point is 1,566 units

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Select True or False for each of the following statements about Types of Fraud, Scams, and Money Laundering
Red Flags.

Answers

Answer:

You Need To Provide More Information on the Question For An Answer

Explanation:

Not Information

Explain why there are advantages to a movie studio operating in southern California, rather than in, say, Florida.

Answers

There are advantages to a movie studio operating in southern California

due to cheap labor and land and numerous scenery.

California is a state in which movie producers prefer operating in as a result

of cheap labor and land which helps to cut the cost needed for producing a

movie.

California also has a lot of scenery such as rivers, mountains etc which

makes the movies more appealing and  is also where Hollywood is located

which is where most movie production and promotion takes place.

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An asset was acquired on October 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company uses units-of-production depreciation and expects the asset to produce 20,000 units. Calculate the gain or loss if the asset was sold on March 31, 2024, for $58,000. Actual production was: 2021 = 500 units; 2022 = 3,000 units; 2023 = 3,500 units; 2024 = 1,000 units.

Answers

Based on the information given  the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

Depreciation per units= (Original cost - Residual value) ÷ (Estimated production units)

Depreciation per units= ($78,000 - $13,000) ÷ 20,000 units

Depreciation per units= $65,000 ÷ 20,000 units

Depreciation per units= $3.25 per units

Accumulated depreciation=(500 units × $3.25)+( 3,000 units × $3.25)+(3,500 units × $3.25)+( 1,000 units × $3.25)

Accumulated depreciation= $1,625 + $9,750 + $11,375 + $3,250

Accumulated depreciation= $26,000

Book value= Acquired value of an asset - Accumulated depreciation  

Book value= $78,000 - $26,000

Book value= $52,000

Gain or Loss= Sale value - Book value

Gain or Loss= $58,000 - $52,000

Gain or Loss= $6,000 gain

Inconclusion the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

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To be useful, accounting information must have the fundamental qualitative characteristics of?

Answers

relevance and faithful representation

In 2019, Krista paid $1,600 in qualified adoption expenses to adopt a U.S. child. The adoption was not finalized, and in 2020, she paid an additional $2,500 in qualified adoption expenses. The adoption failed again in 2020 and never became final. What is the maximum amount Krista may be eligible to claim for the Adoption Credit on her 2020 return

Answers

Considering the available options, the maximum amount Krista may be eligible to claim for the Adoption Credit on her 2020 return is "$4,100."

Adoption Credit Information

Based on the rules and regulations made by the government, if an individual made more than one attempt to adopt one eligible U.S. child, such individual should add the amounts spent and complete only the “Child 1” line.

However, it is allowed to complete more than Child 1 line when individuals adopt or tried to adopt two or three eligible children.

This implies that Krista would have to add the expenses together, which is $1,600 + $2,500 = $4,100.

Hence, in this case, it is concluded that the correct answer is "$4,100."

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Which of the following protects the brokers commission

Answers

The Safety clause is the options that protects the brokers commission.

What is the Safety clause?

This is a legal clause that states that a real estate broker is entitled to a commission if a sale occurs after the listing agreement expires.

Hence, among the options, the Safety clause is clause that offers protection to the brokers commission.

Therefore, the Option A is correct.

Missing options "a. Safety clause b. Listing price. c. Mediation d. MLS"

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#SPJ1

Suppose that you are in charge of an insurance company. Two kinds of people want insurance, healthy people who probably will not get sick this year and unhealthy people who probably will get sick this year. Healthy people expect to pay, on average, $4,000 on medical bills this year. Unhealthy people expect to pay, on average, $8,000 on medical bills this year. Consider these assumptions and then answer the problem.
(i) People will not pay more for insurance than they expect to pay in medical bills; people are risk neutral. As such, healthy people will not pay more than $4,000 for insurance, and sick people will not pay more than $8,000.
(ii) You want to insure as many people as possible, but you cannot charge less for insurance than you expect to pay out. If you do, you will go bankrupt, and you will not be able to pay the medical bills of some people who get sick.
(iii) People know whether they are healthy or unhealthy, but it is either impossible or illegal for you to know whether a person is healthy or unhealthy. This means that you cannot charge less to healthy people and more to sick people since you do not know which individuals fall into each group.
(iv) There are an equal number of healthy and unhealthy people.
How much will you charge for insurance in equilibrium, and who will buy insurance?
a. You charge $2,000 and everyone buys insurance.
b. You charge $3,000 and only unhealthy people buy insurance.
c. You charge $1,000 and everyone buys insurance.
d. You charge $1,000 and only healthy people buy insuran.
e. You charge $3,000 and everyone buys insurance.

Answers

The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is e. You charge $3,000 and everyone buys insurance.

$3,000 will be affordable to both the healthy and the unhealthy.  This amount of premium will enable both classes to buy insurance.

It will not benefit the company to charge:

$2,000 and enable everyone to buy insurance$3,000 and enable only unhealthy people to get insurance$1,000 so that only the healthy people to buy insurance$1,000 because only healthy people buy insurance.

Thus, the insurance premium charged should be Option E.

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a) Staples Corporation shows a credit balance of $21,500 in Allowance for Doubtful Accounts at December 31, 2017, before the current year's provision for uncollectible accounts. The accounts receivable aging schedule revealed the following:
Not yet due
1–30 days past due 31–60 days past due 61–90 days past due Over 90 days past due
Estimated Percentage Uncollectible
$250,000 3% 660,000 6% 125,000 12%
85,000 28% 25,000 42%
Compute the total uncollectible and journalize the entry on December 31, 2019, to record bad debts expense.

Answers

The total uncollectible for Staples Corporation is $74,900 and the journal entry is:

Date                  Account Title                                            Debit             Credit

Dec. 31              Uncollectible Account Expense           $74,900

                         Allowance for doubtful accounts                                 $74,900

Total estimated uncollectible is:

= (250,000 x 3%) + (660,000 x 6%) + (125,000 x 12%) x (85,000 x 28% + (25,000 x 42%)

= $96,400

The uncollectible account balance is:

= Estimated uncollectible - Allowance for doubtful debt credit balance

= 96,400 - 21,500

= $74,900

In conclusion, the total uncollectible balance is $74,900

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The value proposition is____

Answers

Answer:

A value proposition states the: specific benefits a product or service offering provides to a buyer.

Explanation:


A value proposition states the: specific benefits a product or service offering provides to a buyer.

Help help help help business please

Answers

I think it's a sorry if you get the answer wrong

The trade war between the USA and China has put pressure on the international supply chain. However, it also conditioned for transparency competition in world trade. Please analyse this argument point with agreement or disagreement. An example of the international supply chain is recommended to show for supporting your debated points.

Answers

it helps to you I guess

jas read it

Ok, I actually need a lot of help- 30 points to whoever can


Abdul works as a regulator at the Bureau of Consumer Protection. His agency makes sure that consumers are treated fairly. What task might be part of Abdul's job at his agency?

Question 6 options:

drawing up ideas for the new city park


drafting a proposal for the state government budget


recording information about a fraudulent business


meeting with heads of state to discuss trade

Answers

Answer:

I would say that the answer is "recording information about a fraudulent business".

Explanation:

His job is to make sure that consumers are treated fairly.

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