In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will increase the total value of the money supply by:

Answers

Answer 1
The reserve ratio is the portion of the money of the depositor that should be available in cash in the bank. This amount should only be in the bank and not used for all other purposes. Hence, the balance money can be used for the bank operations, increasing the supply. 

In this item, we are given that the reserve ratio is only 5%. This means that, 95% of the money can be used by the bank for its operation. This amount can be calculated by multiplying the amount deposited by the decimal equivalent of 95%. That is,
          = ($1000)(0.95)
          = $950

Therefore, the money supply will increase by $950. 

Related Questions

Is it reasonable to think that a constant growth stock could have g > rs? it is not reasonable for a firm to grow even for a short period of time at a rate higher than its required return?

Answers

No, it is not reasonable or logical for a firm to grow indefinitely at a rate higher than its required return. Such a theoretical stock would become so large that it would ultimately go beyond the whole economy. However for a very short period of time, the rate could possibly be higher than the required return especially when the firm is performing excellently.

 

Ash company reported sales of $410,000 for year 1, $460,000 for year 2, and $510,000 for year 3. using year 1 as the base year, what were the percentage increases for year 2 and year 3 compared to the base year

Answers

Percentage change can be determined by dividing the change by the quantity of the base year. The base year here is year 1, so we use the value of $410,000 as base price.

Year 2:
Percentage change = ($460,000-$410,000)/$410,000*100 = 12.2%

Year 3:
Percentage change = ($510,000-$410,000)/$410,000*100 = 24.4%

The percentage change increased doubly.
Final answer:

The percentage increases for year 2 and year 3 compared to the base year (year 1) for the Ash company are 12.2% and 24.4%, respectively.

Explanation:

The student's question is about calculating the percentage increases for year 2 and year 3 compared to the base year, which is year 1. The Ash company reported sales of $410,000 for year 1, $460,000 for year 2, and $510,000 for year 3. To find the percentage increase for each subsequent year, we will compare the sales of each year to the base year and use the formula for percentage change: (New Amount - Original Amount) / Original Amount × 100%.

For year 2: ($460,000 - $410,000) / $410,000 × 100% = ≈12.2% increase over the base year.

For year 3: ($510,000 - $410,000) / $410,000 × 100% = ≈24.4% increase over the base year.

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On a proportional basis, the largest part of combined state and local spending goes for
defense.
health.
roads.
education.

Answers

Taxfoundation.org explained that the State and local government spending goes to education and public safety.  Higher investment is put on education. Education has been the priority, it is was evident through the years and is manifested with the low tuition fees. In effect it made the students have lower loans.

How often do you rely on your time-management skills to meet deadlines?

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Everytime, its a helpful skill especially throughout schools

Is the natural gas pipelines a natural monopoly or oligopoly?

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Natural gas pipelines is a NATURAL MONOPOLY. A natural monopoly occurs when an extremely high fixed costs of distribution of a particular product exist. Efficiency in this market is maintained by discouraging competition; encouraging competition will leads to loss of efficiency due to duplication of fixed factors.

Three years from now you will begin receiving annual payments of? $7,200. this will continue for 14 years. at a discount rate of? 5.8%, what is the present value of this stream of cash? flows?

Answers

The type of annuity presented above is a deferred annuity because the payment starts sometime in the future. The present worth of deferred annuity is calculated through the equation,

            PV = R x ((1 - (1 + i)^-n)/ i) (1 + i)^-k

where PV is the present worth
 R is payment = $7200
n is the total number of payments to be made = 14
k is the deferred period = 3
i is interest = 0.058

Substituting the known values,
           PV = ($7,200) ((1 - (1 + 0.058)^-14) / 0.058)(1 + 0.058)^(-3)
           PV = $57,216

Thus, the present worth of the deferred annuity is approximately $57,216.3. 

The cash flow is considered to be a deferred one because the annual payments is made on a later date. The formula for finding the present value (PV) of a deferred annuity is given as:

 

 PV of annuity = A * ((1 - (1 + i)^-n)/ i) (1 + i)^-k

Where,

A = annual payments = 7,200

i = interest rate = 5.8% = 0.058

n = number of years = 14

k = deferred years = 3

Substituting the given values into the formula:

PV = 7,200 * [(1 – (1 + 0.058)^-14) / 0.058] (1 + i)^-3

PV = 57,216.29

 

Therefore the present value is about $57,216.29

Jeffrey is so preoccupied by his fear of germs that he always keeps his car and apartment windows sealed tightly, and refuses to allow anyone into his apartment. he carries his own silverware which he uses when he eats away from home, and washes his hands every time he touches anything that has been touched by someone else. jeffrey would most likely be diagnosed with which anxiety disorder?

Answers

Jeffrey would likely be diagnose with OCD or Obsessive Compulsive Disorder. In which it falls in the category underneath it is the symmetry and orderliness, in which a person would likely have everything in a neat and right place. It is like having everything good in place and clean in the same time in which Jeffrey is currently experiencing.
Final answer:

Jeffrey, who exhibits an extreme fear of germs and compulsive behaviors, is likely to be diagnosed with Obsessive-Compulsive Disorder (OCD). Additionally, his intense personality and heart attack at age 52 suggest elements of a Type A behavior pattern, which increases the risk for coronary heart disease.

Explanation:

From the information provided, Jeffrey demonstrates an extreme preoccupation with germs and an insistence on performing certain behaviors, such as keeping windows sealed, refusing entry to his apartment, bringing his own silverware and excessive hand washing. These behaviors suggest that Jeffrey could most likely be diagnosed with Obsessive-Compulsive Disorder (OCD). OCD is an anxiety disorder characterized by unwanted and intrusive thoughts that produce uneasiness, apprehension, fear, or worry; and behavioral rituals intended to reduce anxiety. Jeffrey's avoidance of contamination and his ritualistic behaviors, like hand washing, clearly align with symptoms of OCD, where the individual feels driven to perform in response to an obsession, according to the Diagnostic and Statistical Manual of Mental Disorders (DSM).

Contrasting these behaviors with the details about Jeffrey's driven and intense personality, his inability to relax, heightened stress levels, and his first heart attack at the age of 52, there are elements that also describe characteristics of a Type A behavior pattern. This behavior pattern includes components like excessive competitive drive, aggressiveness, impatience, and a sense of time urgency. These traits are risk factors for coronary heart disease, which Jeffrey's heart attack suggests he may be dealing with as well.

Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous chefs and his mom. Every weekend, he invites friends over for dinner so he can try new dishes and get honest feedback from his friends. Mark wants to start his own restaurant someday because he thinks he would be successful and become wealthy. Which of Adam Smith’s ideas made Mark think of starting a restaurant?
invisible hand
self-interest
competition
laissez-faire

Answers

The answer is "self-interest".


Self-interest is characterized as being centered around yourself or putting yourself at leeway.  

An example of Self-interest is pondering your necessities over the requirements of others around you.  

Self-interest is when people settle on choices that are in their very own best advantage. Like when you choose to get up early in the day to go to work and profit, or when you pay the supermarket for sustenance that you might want to eat.

Answer:

Self-interest

Explanation:

This is 100% the right answer because I got this question on a test and this was correct.

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If job p includes 20 units, what is its unit product cost?

Answers

I think the answer will be $12,500 I believe

At the start of this year 18 months rent was paid. At the year's end how will this affect the balance sheet

Answers

At the end of the year the item of the prepaid rent which included in the current assets would be decreased by 12 months rent of the year and would be shown the balance of 6 months rent for the coming year
The correct answer to your questions is "Assets will be decreased."

In relation to an approach to get into customers’ minds, _____ refers to the collection of associations and emotions unconsciously linked to a word, concept, or experience.

a. illusion

b. moments of truth

c. imprint

d. implication

Answers

The answer to this question is Imprint.

Imprinting is an approach that makes the consumers / customers remember your brand. Imprint simply means leaving something in your mind which last long and gives an impact. Imprinting is very important in businesses because when you imprint your brand in the mind of the customers it gives a long information about the product and gives a lasting impression.  

Theâ ________ is a market derived interest rate used to discount the future cash flows of the bond.

Answers

The answer is yield to maturity.  Yield to maturity (YTM) is the aggregate profit foreseen for a bond if the bond is held until the finish of its lifetime. Yield to maturity is viewed as a long haul security yield, yet is communicated as a yearly rate. The respect development is the evaluated rate of profit based on the presumption it is held until the point that development date and not called. Respect development incorporates the coupon rate inside its figuring

The standard view in economics is that tax cuts without​ ________ will​ ________ the budget deficit resulting in​ ________.

Answers

The standard view in economics is that tax cuts without SPENDING CUTS will INCREASE the budget deficit resulting in CROWDING OUT INVESTMENT. When a government lowers tax without minimizing its spending, it leads to crowding out investment effect, which is a situation in which increased interest rates leads to a decrease in private investment spending in such a way that it takes color out of the initial increase of total investment spending.

Rothe company manufactures and sells a single product that it sells for $200 per unit and has a contribution margin ratio of 25%. the company's fixed costs are $43,000. if rothe desires a monthly target operating profit equal to 20% of sales, sales will have to be (rounded):

Answers

Selling price=200 per unit
CM ratio =0.25
Fixed expenses=43000
target profit=0.2
Dollar sales to attain target profit=X

X=(0.2X+43000)÷0.25
Cross multiplication
0.25X=0.2X+43000
Solve for X
0.25X-0.2X=43000
0.05X=43000
X=43000/0.05
X=860000

Unit sales=Dollar sales÷selling price
Unit sales=860,000÷200
Unit sales=4,300 units. ...answer

A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation

Answers

This is called demographic segmentation. It looks into the profitability of the menu based on the location and where they live. It adapts to the place and brings out what the people in the area would love to eat. To do this the business owner must be able to get the statistics, characteristics, and qualities that he/she believes would meet the customer's taste.

Labor cost advantages gained by moving into a country with low wages may be short-lived because ________.

Answers

It is on the grounds that contenders take after pioneers into low-wage zones. The cost of labor is the entirety of all wages paid to representatives, and additionally the cost of worker advantages and finance charges paid by a business. The cost of work is broken into immediate and circuitous expenses.

A swot analysis contributes to the strategic planning process by identifying ____ resources.

Answers

Below are the resources:

Logistical, human, technical, financial


A SWOT analysis is an organized arranging strategy that assesses those four components of an association, venture or business wander. A SWOT examination can be completed for an organization, item, place, industry, or individual. It includes determining the target of the business wander or extend and distinguishing the inside and outside variables that are great and negative to accomplish that goal.

"dumping occurs when, in a foreign market, a good is sold" quiz

Answers

dumping occurs when, in a foreign market, a good is sold below its cost of production or below the price in that market.
In most cases, companies do dumping if they're waiting for a new batch of products to arrive and they want to clean up some spaces to put additional inventory.

Ten percent of your grade for this assignment is based on your explanation of two basic principles of communication:

Answers

The statement that ten percent of your grade for this assignment is based on your explanation of two basic principles of communication is false because the answer is based on the grading rubric of the week one assignment that was given.

The owners of a firm facing a high probability of bankruptcy prefer to invest in ____ projects, because ______

Answers

The answer is risky; the shareholders have little to lose and might win if successful.  They prefer to go to high risk projects financed with debt because the bondholders are more pertinent to suffer any economic losses incurred should the project fail. The additional debt a company gets, the more it risks being not capable to meet its economic obligations to creditors. A highly leveraged firm is more susceptible to a decline in profitability. Therefore, a highly levered firm has a higher risk of bankruptcy. Investors and/or owners would prefer the company to go ahead with the risky investment. If the company foregoes the investment, owners don’t benefit. If the company does go for the risky investment, owners have at least some upside gain potential.

The owners of a firm facing a high probability of bankruptcy prefer to invest in [tex]\fbox{risky}[/tex] projects because [tex]\fbox{the shareholders have little to lose and might win if successful}.[/tex]

Further Explanation:

Bankruptcy: Bankruptcy refers to the legal process where the person or company seeks relief from the court because they are not able to pay their debt. The company and debtor both can file for bankruptcy in the court.

If the firm is facing bankruptcy, it means that it is heavily laden with debt. The profitability of the firm is very low since it is not able to pay its debts. If the firm goes for bankruptcy, the shareholder will receive a cents for a dollar. But if the firm accepts the risky project and successfully implement it, then it will improve the condition of the firm. The firm might be able to pay its debts.

Therefore, the firm that is facing a high chance of bankruptcy prefers to invest in risky projects because the shareholders might receive their money back if the project is successful.

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Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Financing decisions

Keywords: Owners of a firm, high probability of bankruptcy, risky projects, investment, bankruptcy, the shareholders, have, little too, lose, profit, loss, creditors, bank loan.

Your recently widowed grandma says, “i feel granddaddy's presence all the time. he's actually guiding me to do the right thing.” which reaction should you have?

Answers

The reason that the grand ma is recently widowed will make it likely that the person should treat her in a way that her feelings won't get hurt. The likely response for the given scenario above is to tell her that grand pa is probably doing that, in order for her to be happy and not to deny in a way that she is experiencing it because she longs for him and misses him.

From disposable income, ___________________ (the c in the expenditures model used to calculate gdp) is subtracted to arrive at personal savings by all households within our economy

Answers

Personal Consumption Expenditure. It is the essential measure of shopper spending on merchandise and ventures in the U.S. economy. It represents around 66% of local last spending, and in this manner it is the essential motor that drives future monetary development.

Taylor product inc. distributed 100 million coupons in 2016. the coupons are redeemable for 30 cents each. taylor anticipates that 70% of the coupons will be redeemed. the coupons expire on december 31, 2017. there were 45 million coupons redeemed in 2016 and 30 million redeemed in 2017. what was general's coupon liability as of december 31, 2016?

Answers

Out of the 100 million coupons, 45 million were redeemed in 2016 at 30 cents each. Taylor expected to have 70% of them or 70 million redeemed by the expiry date on Dec. 31, 2017. On Dec. 31, 2016 they would only know of the 45 million redeemed so far and would depend on the projection for 2017 of the extra 25 million. So for the projected 25 million to redeem in 2017, the presumed liability of Taylor would be 25x$0.3=$7.5 million.

If you deposit $5,000 in a bank account that pays 4% interest annually, how much will be in your account after 5 years? round your answer to the nearest cent.

Answers

The formula is
A=p (1+r)^t
A future value?
P present value 5000
R interest rate 0.04
T time 5years
A=5,000×(1+0.04)^(5)
A=6,083.26

On october 10, the stockholders’ equity of sherman systems appears as follows:

Answers

On October 10, the stockholders’ equity of Sherman systems appears as follows:

Common Stock ,$10 par value, 72,000 shares authorized, issued and outstanding = 720,000

Paid-in capital in excess of par value, common stock = 216,000

Retained earnings = 864,000

Total stockholders' equity = 1,800,000

What is the definition of coding? translating documentation into numerical/alphanumerical codes used to obtain reimbursement. translating services a physician performs into documentation. deciphering explanation of benefits provided by an insurance carrier. translating documentation in to software compatible notes?

Answers

the definition of coding is Translating documentation into numerical/alphanumerical codes used to obtain reimbursement.
The main purpose of coding is to classification or identification about certain actions. By doing this, we could transform all form of hideous and repetitive tasks into an automatic operation.

Final answer:

Coding in health care is the process of converting documentation into codes for reimbursement purposes, using systems like the ICD. ICD codes are also used by labs for tests and by the healthcare management system for treatment verification.

Explanation:

The definition of coding in the context of health care refers to the process of 'translating documentation into numerical/alphanumerical codes' used to obtain reimbursement from insurance companies. These codes come from systems like the International Classification of Diseases (ICD), which standardize the way health conditions and medical procedures are recorded and billed. For instance, when a patient is treated for a viral infection, the healthcare provider will use ICD codes to document the diagnosis and the treatment provided.

The medical coder will then use these ICD codes to assign the proper codes for the procedures performed. Subsequently, medical billers use this coded information to process insurance claims to obtain reimbursement. Outside of the billing sphere, ICD codes are used by vital-records keepers, who record causes of death on death certificates, and by epidemiologists, who track morbidity and mortality statistics using the same codes.

Given this information, two locations where you would likely find an ICD code are in medical laboratories and within the healthcare management system.

If elasticity of demand is 0.5, and the price is lowered from $20 to $19, by what percentage will quantity demanded rise?

Answers

To find the percentage of demand rise, the formula is 

Elasticity = (percentage change of demand/percentage change of price)

Elasticity is equal to 0.5. The percentage change of price is:
Percentage change of rise = (20-19)/20 * 100 = 5%
Then,

0.5 = Percentage change in demand/5%
Percentage change in demand = 2.5%

If the average u.s. consumer spends an additional 98 cents out of each additional dollar that he/she earns, what would the expenditure multiplier be?

Answers

Well, according to my knowledge if the average u.s. consumer spends an additional 98 cents out of each additional dollar the he/she earns, than the average expenditure multiplier should be 4000 dollar because the average american earn 5000 to 12000 dollar and expend too many for own.

If we want to construct a 95% confidence interval for the average battery life for smartphone c users that extends at most 2 hours on each side of the mean, how many users do we need to survey?

Answers

If we want to construct a 95% confidence level for the average battery life for smartphone c users that extends at most 2 hours on each of the means, we need to survey at most 706 users among 1000 total users. 

Dfi to achieve economies of scale bear co. and viking, inc., are automobile manufacturers that desire to benefit from economies of scale. bear co. has decided to establish distributorship subsidiaries in various countries, while viking, inc., has decided to establish manufacturing subsidiaries in various countries. which firm is more likely to benefit from economies of scale?

Answers

Bear Company is probably going to profit since it is keeping up the greater part of its assembling in one zone. In the case of Viking Inc. spreads its creation offices, it will bring about higher settled expenses of apparatus. 
The Bear Company profits by the cost advantage that emerges with expanded yield of an item. Economies of scale emerge due to the converse connection between the amount delivered and per-unit settled expenses.
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