Banks in Ruritania have a required reserve ratio of 8% . Round all answers to one place after the decimal. What is the simple money multiplier

Answers

Answer 1

The simple money multiplier is 12.5.

The reserve ratio is the ratio the Central Bank of a country requires banks to keep as reserves in order to meet unforeseen circumstances. For example, if the reserve ratio is 8%, if a customers deposits $1000, banks must keep $80 as reserves.

Money multiplier is the maximum amount of money commercial banks can create.

Money multiplier = 1 / reserve ratio

1 / 8%

1 / 0.08 = 12.5

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Related Questions

Identify and describe four factors that will cause a demand curve for gasoline to shift to the left or decline. What will the likely effect on prices

Answers

Answer:

four factors that could potentially cause a leftward shift in the demand curve for gasoline include

higher prices in gasoline

substitutes for gasoline available at lower prices

substitutes for complementary products (such as electric vehicles) being available at lower prices

changes in consumer income or purchasing power

Explanation:

higher gas prices will have a negative impact on consumer purchasing power, resulting in a decline in demand for the product

substitutes for gasoline, such as diesel or natural gas, at lower prices will cause demand for said substitutes to increase, resulting in a decline in demand for gasoline

complementary products to gasoline are gas-powered vehicles. when demand in a complementary product decreases, so will the demand in the initial product--in this case, gasoline

when consumer income declines, consumer purchasing power declines; this results in a decline in demand for products, such as gasoline

Chase Company owns 80% of Lawrence Company and 40% of Ross Company. Lawrence Company also owns 30% of Ross Company. Separate operating incomes for 2011 of Chase, Lawrence, and Ross are $450,000, $300,000, and $250,000, respectively. Each company also retains a $20,000 unrealized gain in their current income figures. Annual amortization expense of $15,000 is assigned to Chase's investment in Lawrence and another $15,000 is assigned to Lawrence's investment in Ross. Compute the noncontrolling interest in Ross' net income for 2011. $92,000. $77,400. $75,000. $64,500. $69,000.

Answers

The non-controlling interest in Ross Company's 2011 net income is A. $92,000.

Data and Calculations:

Chase Company's shareholding in Lawrence Company = 80%

Chase Company's shareholding in Ross Company = 40%

Lawrence Company's shareholding in Ross Company = 30%

                                                    Chase       Lawrence      Rose

Operating incomes for 2011   $450,000    $300,000  $250,000

Unrealized gain                           20,000        20,000       20,000

Annual amortization expense                          15,000       (15,000)

Therefore, Chase Company's shareholding in Ross Company = 64% (40% + 80% x 30%).

And Ross' non-controlling interest = 36% (100% - 64%)

= $92,000 ($250,000 + $20,000 - $15,000) x 36%

Thus, the non-controlling interest in Ross Company's 2011 net income is A. $92,000.

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While screening and evaluating ideas, a stop-to-market mistake happens when ________. Multiple Choice

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While screening and evaluating ideas, a stop-to-market mistake usually occur as result of : good idea  been eliminated during the screening process.

Stop-to-market mistake serves as marketing mistake that cam be made which can affect revenue that a firm suppose to get.

At the screening and evaluating ideas stage, if careful decision are not made a good ideal can be eliminated which can affect the whole plan.

Therefore, good decision has to be made when

screening and evaluating ideas.

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Explain the term opportunity cost

Answers

Answer:

the loss of potential gain from other alternatives when one alternative is chosen.

"idle cash balances represent an opportunity cost in terms of lost interest"

Explanation:

xercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $240,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1Year 2Year 3Year 4Year 5 Net cash flows$72,000$45,000$71,000$160,000$57,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment

Answers

The net present value of this investment is $44,722.06.

The investment should be accepted.

Net present value is a capital budgeting method. It is calculated as the present value of after-tax cash flows from an investment less the amount invested in the project.  

NPV can be calculated using a financial calculator .

Only projects with a positive NPV should be accepted.

Cash flow in year 0 = $-240,000

Cash flow in year 1 = $72,000

Cash flow in year 2 = $45,000

Cash flow in year 3 = $71,000

Cash flow in year 4 = $160,000

Cash flow in year 5 =  $57,000

Interest rate = 12%

NPV = $44,722.06

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Which employee is most likely to have a pension plan?
A. A food bank volunteer
B. A family physician
C. A public school teacher
D. A part-time food server

Answers

A public school teacher is most likely to have a pension plan. Option C is correct.

What Exactly Is a Pension Plan?

A pension plan is an employee benefit in which the company pledges to making monthly contributions to a pool of money put aside to finance payments to qualified employees once they retire.

Underfunding, mismanagement, insolvency, and legal exclusions are all possibilities that might jeopardize the pension. There are laws in place to safeguard you in such situations, but some are more effective than others.

Therefore, option C is correct.

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how do VIP membership card works in a resort or hotel what will happen if you have VIP membership card?

Answers

the answer would be, if you have a membership card at a hotel or resort, you most likely have more benefits then a normal client such as certain dinning, places to go, special room service, etc

Mickey and Minnie each have a budget of $80 per moth to spend on downloaded music tracks and live concerts. At the initial price, Mickey consumes both goods but Minnie buys only downloaded music an does not go to live concerts. Now the price of live concerts falls. Use figures to show that Mickey’s utility must increase and that Minnie’s utility may increase or stay the same, but cannot fall.

Answers

Answer:

sanaol may pera

Explanation:

#fyp tikrok

The question is about the spent of budget and their utility.

Minnie and Mickey have a budget of $80 each per month to spend on music and concerts.

Mickey consumes both to spend his budget but Minnie only consumes her budget for downloaded music.

Now that the price for concert have decreased Mickey will be able to spend more on either options as he will be paying less for concert tickets. Therefore Mickey's utility will increase.

While Minnie only consuming downloaded music will have no impact upon falling prices for the concert. Therefore her utility will remain same.

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Acme Widget, Inc. has 1,000 shareholders who own a total of two million shares of its common stock. The company earned $20 million after taxes and paid out $8 million in dividends. The company has assets of $250 million and liabilities of $50 million. What is the book value per share

Answers

Acme Widget, Inc. has a book value per share of $100.

Data and Calculations:

Number of shareholders = 1,000

Total number of common stock shares = 2,000,000 shares

Earnings after tax = $20 million

Dividends paid = $8 million

Assets = $250 million

Liabilities = $50 million

Equity = $200 million ($250 million - $50 million)

Book value per share = $100 ($200,000,000/2,000,000)

Thus, Acme Widget's book value per share is $100.

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Dominique and Isidora Wilson are wealthy entrepreneurs who are very interested in helping people who have been wrongly convicted of crimes. What philosophy would they choose to implement

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People do things for different reasons.The philosophy they would they choose to implement is Philanthropy.

Philanthropy is a term that goes beyond the act of giving, Its aim is to encourage change in the community and people.

This act been pursued is equally beneficial for the performer and the recipient. The field of philanthropy is lead by professional companies and people to worthy causes.

Giving yourself to a cause is very personal, and sometimes emotionally taxing of your time and money.

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What is not a task of a bank?

Answers

they arent obligated to be real people.

The following which is not a task of the bank is that they are responsible for the conduct of monetary policy. Thus, option 'C' is the correct option.

What are the basic functions of banks?

A bank's role is to gather public deposits and lend those deposits for the growth of commerce, industry, trade, and agriculture. Bank gets interest on loans and advances from depositors at greater rates than it pays to depositors. The primary duties of banks include safeguarding, transferring, lending, and trading money in a variety of ways, as well as determining the creditworthiness of their clients.

People can borrow money from the bank at a time-interest rate. The bank approves each loan amount after giving it careful thought and protecting its profit. Additionally, the bank offers its clients advances. These are also the main roles that banks play.

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Probably, the complete options are:

a) they bring together savers and borrowers.

b) safe places for people to store their wealth.

c) they are responsible for the conduct of monetary policy.

d) they help to facilitate trade by providing alternative methods of payment.

Using your understanding of how conflict occurs, complete the sentence.

The two managers often engaged in ______________________; in today’s meeting, they had a spirited debate over the project’s optimal workflow, and their disagreement ultimately led to a creative solution.

a. relationship conflict
b. groupthink
c. task conflict

Answers

Answer:

c. task conflict

Explanation:

The two managers often engaged in task conflict; in today’s meeting, they had a spirited debate over the project’s optimal workflow, and their disagreement ultimately led to a creative solution.

What is clay item?Give your own no rude answer. ​

Answers

Answer:

things made up of wet clay minerals that are mixed in soil

Answer:

Clay is a type of fine-grained natural soil material containing clay minerals. Clays develop plasticity when wet, due to a molecular film of water surrounding the clay particles, but become hard, brittle and non–plastic upon drying or firing. ... Clay is the oldest known ceramic material.

The basic logic behind the Rational Rule for Sellers is that a company owner should increase output as long as the extra output A. moves the company toward maximum total revenue. B. leads to a larger gap between price and average total costs. C. leads the company toward minimum average total costs. D. adds more to revenue than it adds to costs.

Answers

According to the logic behind the Rational Rule for Sellers, a company owner should increase output when the extra output D. adds more to revenue than it adds to costs.

According to the Rational Rule for Sellers, a seller should only choose the output level where the marginal cost is equal to the marginal revenue.

It should be noted that the owner of a company should increase output when the extra output adds more to revenue than it adds to costs. This is vital in order to increase the revenue and profit of the firm.

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Samantha, who is single and has MAGI of $58,500, was recently employed by an accounting firm. During the year, she spends $3,900 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $5,040 for tuition and $780 for books (which are not a requirement for enrollment in the course).

Answers

Answer:

KNOCK WHOS THERE.YOUR DAD. DAD WHO. WAIT I FORGOT YOU GOT NO DAD.

YOUR DAD DIDNT GO GET THE MILK HE JUST HATED YOU IT WAS YOUR FAULT YOURPARENTS DONTLOVE YOU.

Nonverbal communication sends powerful messages through body language and facial expressions. This set of questions covers nonverbal behavior as it is typically expressed in U.S. business culture. Your country or culture may use different styles of nonverbal communication.

When a person meets a group of people for the first time, he or she pays more attention to:

a. Body language, the sounds of conversation (angry, happy, animated, and so forth), and people’s expressions
b. The words that people say when they introduce themselves

Answers

A and b both are really important

Answer:

a. Body language, the sounds of conversation (angry, happy, animated, and so forth), and people’s expressions

Explanation:

Studies show that people place far more emphasis on nonverbal cues than on verbal cues when interpreting messages. Thus, whenever people interact face to face, they are more likely to pay attention to nonverbal cues, such as vocal tones and gestures.

A single factory produces two different products during each half of the year with equivalent fixed cost; from January through June they produce Product A and from July through December they produce Product B. Product B costs three times as much to produce and the price of Product A is one third of Product B. The breakeven quantity of Product A as related to the breakeven quantity of product B is best represented by:

Answers

The breakeven quantity of Product A as related to product be is 1/3.

The breakeven quantity refers to the minimum of units a company needs to sell to cover the costs that implied producing that good.

For example, if production costs are $1000 and each unit sale price is 10, the company will need to sell at least 100 units ($1000 / 10 = 100).

In the case of product A and B, it is known product A cost only 1/3 of product B. For example:

Product A: $100 (production cost).Product B: $300 (production cost).

In this context, the breakeven quantity for product A will be a third of the one for product B.

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which is better Window 11 or 10?

Answers

Answer:

Window 10 is better then 11, so i recommand skip 11

Explanation:

A __________ refers to a communication structure in which team members freely communicate with one another and arrive at decisions together.


✔ a. decentralized network

b. centralized network

c. circular network

d. linear network

e. gossip structure

Answers

Answer : circular network

Consider the market for land in central Pennsylvania, where land is used mainly for growing agricultural goods, as compared to the market for land in Rittenhouse Square, a small section of Philadelphia known for its cafes and shopping.
Because the supply of land in central Pennsylvania is_____, buyers in central Pennsylvania pay____for use of the land. The rental price of land is much lower in central Pennsylvania than in more densely populated areas like Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is in low____.
Some entrepreneurs decide to build parking lots in Rittenhouse Square. The supply curve for land to be used for parking lots is_____.

Answers

The supply land in central Pennsylvania is perfectly inelastic, buyers in central Pennsylvania pay an interest rate for land use.

The rental price is lower in central Pennsylvania than Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is downward sloping.

Some entrepreneurs decide to build parking lots on Rittenhouse Square. The supply curve for land to be used in parking lots is upward slopping.

Perfectly inelastic supply corresponds to one in which the demand curve is vertical, that is, the quantity demanded does not respond very strongly to price changes.

Buyers pay an interest rate for the use of the land, as the quantity demanded does not change if the price changes.

The rent price in central Pennsylvania is lower than in the Rittenhouse Squar due to the downward sloping curve that corresponds to lower interest expectations in the future, due to the elasticity of the supply.

The construction of parking lots in Rittenhouse Square is upward sloping because of the response to the profit that entrepreneurs hope to achieve in a perfectly elastic market.

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What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)

Answers

Answer:

ha I sry I'm sry

Planned sales for June this year are $120,000. Last year, the actual sales for June were $110,000. Determine the planned percent increase in sales for the month.

Answers

Given that the planned sales for June this year are $120,000 and that last year's actual sales for the month of June were $110,000, there is a 9.09% increase in sales for the month.

The actual increase in sales is $10,000 ($120,000 - $110,000) or ($110,000 x 1.0909 - $110,000)

Data and Calculations:

Planned sales for June, this year = $120,000

Actual sales for June,last year = $110,000

Planned percent increase in sales for June = 9.09% ($10,000/$110,000 x 100)

Thus, the planned percentage increase in sales for the month is 9.09%.

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How does the opportunity cost principle explain the relationship between the real interest rate and investment spending?
As the interest rate rises,
the more spending businesses want to do.
the less attractive it is to leave money in the bank instead of spending on investments.
the more attractive it is to leave money in the bank instead of spending on investments.
it has no effect on investment spending. If firms need to expand, they will invest regardless of the interest rate.
b. The investment line is
because of the relationship between real interest rates and investment
spending
perfectly elastic
vertical
upward-sloping
downward-sloping

Answers

The opportunity cost illustrates the relationship that exists between them because as the interest rate rises, the more attractive it is to leave money in the bank instead of spending on investments.

The investment line is downward sloping because of the relationship between real interest rates and investment spending.

Opportunity cost simply means what one foregoes in order to get something else. It should be noted that when there's an increase in the interest rate, this will lead, the cost of borrowing will be high. Therefore, there'll be a reduction in investment.

Therefore, there's a negative relationship between interest rate and investment spending. This then leads to a downward-sloping curve.

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what is most likely true of a formulaic story

Answers

Answer:

It closely follows Freytag's pyramid

Explanation:

As opposed to running for office, careers in
government administration are what kind of
positions?
A. permanent
B. freelance
C. contract

Answers

Answer:

I think its freelance .

Answer:

The answer would be B. freelance

Explanation:

I got it right on my test; Edmentum

If a disease infects and destroys a large amount of the nation's supply of tomatoes, what is likely to happen to the price of tomatoes? (Select the best answer.)

Question 5 options:

The price will go up.


The price will remain the same.


The price will go down.

Question 6 (1 point)
In cases of natural monopolies- such as utility companies- prices are kept under control MAINLY through

Question 6 options:

competition


supply and demand


free market forces


government regulation

Question 7 (1 point)
· firms produce and sell identical products
· firms have a relatively small market share
· consumers are aware of the products and their prices
· there are few barriers to entry into the market


All of these are describing what market type of market structure?
Question 7 options:

monopoly


oligopoly


monopolistic competition


perfect competition

Question 8 (1 point)

In the five C's, how is cost different from price? (Select the best answer.)

Question 8 options:

It includes all of the costs related to the product.


It makes it easier to promote the product.


It reduces the company's operating expenses.


It includes the company's operating costs.

Question 9 (1 point)

You notice that juice is now selling for much higher prices than in the past. Which two things would you expect to happen next? (Select two answers.)

Question 9 options:

Supply will go up


Demand will go down


Supply will go down


Demand will go up

Question 10 (1 point)
Needs, product, source, price, and time could all be known as ______.

Question 10 options:

Customer objections to a sale


Economic services


Sales promotion


Channel management function

Answers

Answer:

q5) price will go up

q6) government regulatories

q7) perfectly competitive

q8) includes all cost related to the product

q9)supply will go up and demand will go down

q10) customer objections to sale

Jade has learned that listening to customers, learning about their needs, and communicating with them over a prolonged period of time is key toward making large business sales. Jade is most likely using

Answers

Since Jade has learned that listening to customers, learning about their needs, and communicating with them is the key to making large business sales, Jade is probably using relationship selling.

This is an effective sales strategy, as currently the relationship between companies and consumers has intensified and is much more direct, with companies creating value for the consumer in different aspects of the sales process.

Relationship selling focuses on solving problems through personalized service that does not focus on the product and price, but on the consumer's perspective.

Therefore, relationship selling aims to understand the buyer's needs by solving their problems and satisfying their desires, where the seller acts as a partner capable of generating value for the consumer.

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A major glass factory just closed because it wasn't making enough money to sustain itself. As a result, hundreds of workers lost their jobs. In addition to impacting the people who are now unemployed, what impact does this factory closure have on other businesses in the area

Answers

Answer:

They are very sad now because they liked the old factory.

Funseth Farms Inc. purchased a tractor in 2018 at a cost of $30,000. The tractor was sold for $3,000 in 2021. Depreciation recorded through the disposal date totaled $26,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor was sold for $10,000; prepare the journal entry to record the sale

Answers

1. The journal entries that Funseth Farms Inc. will record for the sale of the tractor are as follows:

Debit Sale of Tractor $30,000

Credit Tractor $30,000

To transfer the Tractor account to Sale of Tractor account.

Debit Accumulated Depreciation $26,000

Credit Sale of Tractor $26,000

To transfer the accumulated depreciation to Sale of Tractor account.

Debit Cash $3,000

Credit Sale of Tractor $3,000

To record the cash receipts from the sale.

Debit Loss from Sale $1,000

Credit Sale of Tractor $1,000

To record the loss from the sale.

2) If the tractor was sold for $10,000, the journal entries are as follows:

Debit Sale of Tractor $30,000

Credit Tractor $30,000

To transfer the Tractor account to Sale of Tractor account.

Debit Accumulated Depreciation $26,000

Credit Sale of Tractor $26,000

To transfer the accumulated depreciation to Sale of Tractor account.

Debit Cash $10,000

Credit Sale of Tractor $10,000

To record the cash receipts from the sale.

Debit Sale of Tractor $6,000

Credit Gain from Sale $6,000

To record the gain from the sale.

Data Analysis and Calculations:

Cost of Tractor in 2018 = $30,000

Accumulated Depreciation = $26,000

Proceeds from sale = $3,000

Loss from Sale = $1,000

Accumulated Depreciation $26,000 Sale of Tractor $26,000

Sale of Tractor $30,000 Tractor $30,000

Cash $3,000 Sale of Tractor $3,000

Loss from Sale $1,000 Sale of Tractor $1,000

2) If the tractor was sold for $10,000, the journal entries are as follows:

Accumulated Depreciation $26,000 Sale of Tractor $26,000

Sale of Tractor $30,000 Tractor $30,000

Cash $10,000 Sale of Tractor $10,000

Sale of Tractor $6,000 Gain from Sale $6,000

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What term refers to the percent of total revenues that represent a business's actual profit? A. Percent increase B. Relative revenue C. Profit margin D. Markup

Answers

The profit margin shows the percentage of a sale that is profit for a company.

What is profit margin?

One of the often utilized profitability metrics to gauge a business's or line of company's profit is profit margin. It displays the proportion of profitable sales.

Profit margin is the difference among your company's total operating expenses and its total revenue. With more cash on hand for your organization, the profit margin will rise. You can rapidly determine a company's profit margin by subtracting the cost of the product sold (COGS) from overall sales and the result is divided by total revenue. Multiplying the figure by 100 will get the percentage.

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