The money multiplier _______ A. Increases if banks increase their desired reserve ratio B. Increases if the
Question:
The money multiplier _______
A. Increases if banks increase their desired reserve ratio
B. Increases if the currency drain ratio increases
C. Is 1 if the desired reserve ratio equals the currency drain ratio
D. Decreases if banks increase their desired reserve ratio
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
Answer D If banks increase ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
a. Suppose that banks have decided they need to keep a reserve ratio of 10%this guarantees that theyll have enough cash in ATM machines to keep depositors happy, and enough electronic deposits at the...
-
We mentioned how difficult it can be for the Federal Reserve to actually control aggregate demand: Its control over the broader money supply (M1 and M2) is weak and indirect, plus it cant control...
-
In the past, the Federal Reserve didnt pay interest on reserves kept in Federal Reserve banks: For an ordinary U.S. bank, money kept at the Fed earned zero interest, just like money stored in a vault...
-
Write a filter that reads text from an input stream and prints it to an output stream, removing any lines that consist only of whitespace.
-
The atomic weight, density, and atomic radius for three hypothetical alloys are listed in the following table. For each, determine whether its crystal structure is FCC, BCC, or simple cubic and then...
-
Use the information for Jenny Corporation in E18-14, and assume that the company reports accounting income of $155,000 in each of 2015 and 2016, and that there is no reversing difference other than...
-
Refer to Exhibit 5-6. Suppose the appliance maker has two plantsthe Salem plant and the Youngstown plant. The Youngstown plant produces only three appliances that are very similar in material and...
-
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its...
-
Evaluate the integral. sint dt (3+ cost) 5 1 O A. +C 4(3+ cost)4 4 OB. +C (3+ cost) 1 C. +C (3+ cost)4 1 +C OD. 6(3+ cost)6
-
Learning Objectives 2, 4 P13-41A Journalizing stock issuance and cash dividends and preparing the stockholders' equity section of the balance sheet 2. Total Stockholders' Equity D-Mobile Wireless...
-
An open market _______ of $100 million of securities ______ A. Purchase; increases bank reserves B. Sale; increases bank reserves C. Purchase; decreases the Feds liabilities D. Sale; increases the...
-
Draw a graph to illustrate the demand for money. On the graph show the effect of an increase in real GDP and the effect of an increase in the number of families that have a credit card.
-
Why are Japanese employers more ready to reform the seniority wage system than to retreat from lifetime employment?
-
How do entrenched cultural norms and deeply ingrained institutional paradigms act as formidable barriers to the successful implementation of transformative initiatives within the intricate tapestry...
-
You will prepare the monthly budget for a new company during the first week. During the second week you will use scenario, sensitivity , and simulation analysis to better understand the risk of the...
-
Pls give me answer asap thank you Question 6 A manufacturer can produce 5130 cell phones when I dollars is spent on labor and y dollars is spent on 3 capital. The equation that relates x and y is...
-
Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal...
-
Riley Co . experiences a $ 2 0 million loss this year. It is more likely than not that this net operating loss will expire unused. How will this loss and corresponding valuation allowance, if any,...
-
Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid...
-
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and...
-
Choose the best statement. A. An increase in the demand for a good increases producer surplus. B. If producers decrease the supply of the good, their producer surplus will increase. C. Producer...
-
All of the following statements are correct except ______. A. The value of an additional unit of the good equals the marginal benefit from the good B. Marginal benefit is the excess of value over the...
-
If the quantity demanded decreases by 100 sandwiches an hour at each price, what is the equilibrium price and what is the change in total surplus? The table shows the demand and supply schedules for...
-
What items should be reviewed to reduce ongoing practice cost? I. Supplies II. Phone/data plans III. Personal travel expenses IV. Building costs V. Malpractice insurance VI. Purchased services VII....
-
Which represents the correct order of deductions in the individual income tax formula? A. Gross income , Adjusted Gross income, Taxable income , credit, tax overpaid/ underpaid B. Gross income ,...
-
Jane provides a money purchase pension plan for her employees. She wants to fund the plan for each employee with either a term or whole life insurance policy. Which person does not pass the...
Study smarter with the SolutionInn App