If bank reserves are equal to $2,000, the required reserve ratio is 10 percent, and banks make as many loans as they can, what will be the upper limit of the money supply assuming no borrower withdraws currency and leaves the loan balance in the bank after a loan is created

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Answer 1

The upper limit on the money supply assuming borrower withdraws currency and leaves the loan balance in the bank after a loan is created is $200,000.

What is the upper limit on the money supply?

The first step is to determine the total amount of deposits in the banks.

Deposits = resereves / reserve ratio

2000 / 0.1 = $20,000

Upper limit on money supply = deposits / reserve ratio

20,000 / 0.1 = $200,000

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Related Questions

A life insurance policy with a small face amount where the premium may be collected weekly by agents is termed:

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A life insurance policy that has a small face amount where the premium may be collected on a weekly basis by agents is termed: industrial life insurance.

What is an industrial life insurance?

An industrial life insurance can be defined as a type of life insurance policy that is generally written upon individual lives (insured) with a small face amount where the premium may be collected by insurance agents on a weekly basis.

This ultimately implies that, an industrial life insurance refers to a contract between an insurance company (insurer) and an insurance policyholder (insured) where premiums are payable on a weekly or monthly basis.

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Elle wants to understand how much, on average, her ads cost her per click. Which metric would best help her understand this

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To find out how much, on average, her ads cost her per click, Elle could use the cost-per-click (CPC) metric.

How to calculate the CPC of an ad?

You must divide the total spent for an ad by the total number of clicks received. The CPC will be effective if it is aligned with the goals determined by the Return on Investment (ROI) forecast by the company.

Therefore, metrics in digital marketing ads help companies analyze the reach and effectiveness of their ads, increasing control and management.

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Indigo Company is considering an investment which will return a lump sum of $2,610,000 six years from now. What amount should Indigo Company pay for this investment to earn an 11% return

Answers

The amount should Indigo Company pay for this investment to earn an 11% return is $1,395,410.

What do you mean by Present value?

The term present value is considered as the current value of a future sum of money regarding the cash flows that are given in a specified period of time.

Solution:

Given Information:

Amount received= $2,610,000Time period=6Return=11%

Amount Invested= Amount received*Present value factor pf $1 (11%, 6 years)

Amount Invested=$2,610,000*0.53464

Amount Invested=$1,395,410

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Recommendations for internet use and digital literacy

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Brainly and

Explanation:

the best for you

Which investment strategy would work best if you wanted to grow your
investment slowly without losing much money?
O A. High risk, low return
O B. Low risk, high return
O ,
C. Low risk, low return
O D. High risk, high return
SUBMIT

Answers

Answer: C. Low risk, low return

Explanation:

True or false: A potential consequence of an incentive system for factory workers is that workers who are rewarded solely on output, may sacrifice the quality of a product to produce more.

Answers

If there is incentive system linked to quantity of output produced then workers will try to produce as much products as they can, compromising on the quality of product.

The statement is True.

Incentive system based on Quantity Produced

There are different incentive systems in a factory. A worker may get rewarded base don quantity produced.

If this is the case then the worker will try to make more products in minimum possible time which can reduce the quality of those products.

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When there is disagreement among members at the same level of marketing channels, such as when best buy and sears engage in a price war on maytag appliances, ________ channel conflict can occur.

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When best buy and sears engage in a price war on maytag appliances, Horizontal channel conflict can occur.

What is Horizontal channel conflict?

Horizontal channel conflict can be defined as the type of conflict that arise  when their is a conflict or a disagreement among members that are a similar level of a distribution or marketing channel.

Example when two retailers compete against each other or when two producers compete against each other.

Therefore When best buy and sears engage in a price war on maytag appliances, Horizontal channel conflict can occur.

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The degree to which local regulations favor local workers and suppliers is an example of the environmental factor termed ________.

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The degree to which local regulations favor local workers and suppliers is an example of legal/political security.

What is political security?

political security is the protection of human rights and well-being of all people.

It is kind of protection received by local workers and suppliers and this gives freedom to the citizens.

Therefore, political security gives room for the citizens to exercise their right, and protect the right of all workers and individuals in the country.

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If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would Group of answer choices slope downward. be horizontal. slope upward. slope downward for low output levels and upward for high output levels.

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A firm's long-run average total cost curve would be horizontal if it experiences constant returns to scale at all output levels.

What is constant returns to scale?

Constant returns to scale is a situation that occurs when the average cost does not change when there is an increase in output.

Constant returns to scale is a situation where an increase in input causes an equal proportionate increase in output level. Here the average cost of production will not change due to the increase in inputs.

Hence, a firm's long-run average total cost curve would be horizontal if it experiences constant returns to scale at all output levels.

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Bonds issued by raxin accounting have a total yield of 11.4% annually, while raxin accounting stocks have a total yield of 14.4% annually. if you invest $2,600 in raxin accounting bonds and $2,000 in raxin accounting stocks, which investment will have a greater return after nine years, and how much greater will it be? a. the bonds will show a profit that is $75.60 greater than that of the stocks. b. the bonds will show a profit that is $67.60 greater than that of the stocks. c. the stocks will show a profit that is $8.00 greater than that of the bonds. d. the stocks will show a profit that is $524.40 greater than that of the bonds.

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If amounts of $2600 and $2000 are invested in raxin accounting bonds and stocks respectively, bonds will give a return over such investment that is more than $158 compared to that of stocks.

What is return on investment?

Using the given information, it can be calculated that the returns generated by bonds over an investment of $2600 for nine years will be $6870; whereas that for stocks will be $6712 for an investment of $2000.

[tex]\rm Better\ Return\ on\ Investment= Returns\ over\ Bonds – Returns\ over\ Stocks\\\\\rm Better\ Return\ on\ Investment= 6870-6712\\\\\rm Better\ Return\ on\ Investment= \$158[/tex]

Hence, it has been computed that bonds have a generated a better return on investment at the rate of 11.4 percent for a period of nine years that is more by $158 than that of returns by stock investments.

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Answer:

Its A) 75.60 greater than that of stocks

Explanation:

ON EDGE

Quinn works for a manufacturing company and is in the process of making a decision about the funding of future projects. Since the company has outlined more potential projects than can actually be funded, Quinn must select those projects that promise the greatest future return for the company. Quinn is involved in the process of:

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Answer: Capital Budgeting

Explanation:

If the company paid $20,100 of its advertising expense during the current year, what amount is owed for advertising at the end of the year

Answers

Answer:

Advertising expense 6,600. Rent expense 11,600. What is the amount of total assets to be reported on the balance sheet at the end of the year? $106,800.

Explanation:

Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts are referred to as:

Answers

Assuming Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. This refers to as working capital management.

What is Working Capital Management?

Working capital management can be defined as the way in which a company or an organization ensures that both their current asset and current liabilities are put in use effectively and efficiently.

A company who make use of working capital management  as a strategy  will tend to ensure that their liabilities does not exceed their assets so as to maintain the company financial health.

Therefore this refers to as working capital management.

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The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves

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In the strategy implementation stage, there are certain things done to create and sustain a competitive advantage and this involves the definition of strategic goals.

What is Competitive Advantage?

This refers to the business situation whereby a company is able to outperform its competition.

Hence, we can see that when making strategic planning and implementation, there is the planning and making of contingencies for a meeting of set company goals to enhance the competitive advantage.

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Which of the following may not make you eligible for loan forgiveness?
Having a qualifying public service job like working in government or in a non-
profit
Being on an income-driven repayment plan that lasts for 20 or 25 years
Being in an entry-level position for 2-3 years
О.
Teaching in a low-income public school
Submit

Answers

There are several ways to qualify for loan forgiveness but one way that isn't is Being in an entry-level position for 2-3 years.

What is loan forgiveness?

This is a scheme where a person can either be forgiven for all of their student loans, or a portion of it.

Those who work in government organizations, and non-profits can qualify for this as well as those on an income-driven repayment plan. Being at an entry-level position for 2-3 years does not qualify you.

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What type of business organisation does not usually have shareholders?
1. A multinational company
2. A partnership
3. A private limited company
4. A public limited company

Answers

Answer:

A partnership

Explanation: A partnership

partnership

a partnership is a business organization which is controlled by 2 to 20 people.

examples include:

red bullspotifymaruti suzuki

At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. We would expect that the rebuilding increased aggregate demand in

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We would expect that the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in a. Both the US and Europe.

What is aggregate demand?

Aggregate demand refers to the total demand for goods and services within an economy.

Because of the Marshall Plan initiated by the United States for rebuilding Europe after the Second World War, aggregate demand increased in both the United States and Europe.

Answer Options:

a. Both the US and Europe

b. The US, but not Europe

c. Europe, but not the US

d. Neither the US nor Europe

Thus, the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in a. Both the US and Europe.

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An increase in household saving causes consumption to:.

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Answer:

interest rates, inflation, confidence, saving rates and availability of finance

An increase in household savings causes consumption to increase in aggregate supply and decline in aggregate demand.

What is savings?

Savings are the funds that remain after subtracting a person's consumer spending from their disposable income during a specific time period. Savings, then, is what's left over after all bills and commitments have been fulfilled for an individual or household.

Further an interest-bearing deposit account kept at a bank or other financial institution is referred to as a savings account. Despite the relatively low interest rates offered by these accounts, their security and dependability make them a fantastic choice for keeping cash on hand for urgent needs.

Therefore all other things being equal, a higher savings rate will eventually result in a larger amount of physical capital, allowing the economy to create more goods and services since personal saving leads to investment.

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Since the 1970s, the largest area of job growth in the United States has been in the ______ sector; areas such as banking, health care, and fast food. Multiple choice question. personal care

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The largest area of job growth in the United States has been in the service sector.

What are the service sectors?

The service sector is commonly known as the tertiary sector. It is also known to be the third tier in the three-sector economy.

An Examples of service sector jobs are housekeeping, nursing, etc. The Service industries is made up of:

Banking CommunicationsWholesale and retail trade, etc.

Conclusively, The largest area of job growth in the United States as at 1970s has been in the service sector.

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Which of these steps is considered the most important when researching and promoting an event?



a) Selecting the best media to reach your target audience

b) Developing your message

c) Defining and analyzing your target audience

d) Establishing your desired end result

Answers

The best step to research and promote an even is by Defining and analyzing your target audience.

What is Research?

Research refers to some findings or investigations that help to create or portray new knowledge by using formal nowledge in another way so as to develop new concepts, methodologies and understandings. This can include analysis of former researches, thesis and so on.

Therefore, The best step to research and promote an even is by Defining and analyzing your target audience.

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Planned investment spending is _____ the interest rate because fewer projects are profitable at higher interest rates. greater than positively related to less than inversely related to

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The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.

How are investment spending and interest rates related?

Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.

If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.

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Which of these are ways to protect yourself against identity theft
Don’t share passwords or PIN numbers with others
Don’t post the exact date and place of your birth.
Don't tell people your dog's name
Use strong passwords and protect them. Also, change them often.

Answers

Answer:

All of the above except: Don't tell people your dog's name

Explanation:

Hope this helps!

What term is used in macroeconomics to describe the total supply and the total demand? capital inflation aggregate equilibrium

Answers

The term is used in macroeconomics to describe the total supply and the total demand is aggregate. Aggregate is also called total output.

What is microeconomics?

Macroeconomics is the study of the overall behavior and functioning of an economy. It concentrates on the economy's overall developments, such as unemployment, growth rate, GNP, and inflation.

Macroeconomics examines the economy's aggregate indicators as well as the microeconomics elements that influence it.

Macroeconomic models are used by the government and enterprises to aid in the formulation of economic policies and strategies.

Thus, option C, aggregate is used to describe the total supply in macroeconomics.

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Answer:

aggregate

Explanation:

The answer above is correct.

When a company listens to a customer, the customer is more likely to be loyal to the business because

Answers

Answer: Customers that are listened feel like the company is more concerned with helping them and not just selling something.

Explanation:

Two primary sources of capital are debt and sale of assets. debt and equity. debt and borrowings. equity and sale of assets. debt and accounts receivable.

Answers

The two primary sources of capital for a firm are debt and equity.

What is debt and equity?

Debt is a source of capital. A form of debt are bonds. A bond is a debt instrument used by businesses to raise capital needed for business operations. Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested.

Capital can also be raised by issuing shares. Shares give ownership rights to its holders.

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Aggregate planners attempt to balance Multiple Choice capacity and demand. capacity and costs. capacity and inventories. demand and costs. demand and inventories.

Answers

In the economic world, the aggregate planners are always attempting to balance the capacity and demand.

Who are the aggregate planners?

These are economic planners who are involved in the process of planning the overall capacity so that they can respond to predicted demand in a cost-effective manner.

Hence, these aggregate planners are always attempting to balance the capacity and demand.

Therefore, the Option A is correct.

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Six years ago, Hendershot Stables paid $84,000 in cash for equipment. Last year, the company spent $7,600 on equipment upgrades. The company no longer uses this equipment and has received a cash offer of $39,600 from a buyer. The current book value of the equipment, including all updates, is $32,200. If the company decides to keep the equipment and use it for a new project, what value, if any, should the company assign to the equipment

Answers

The value that should be assigned by the company to the equipment is $39,600.

What is opportunity cost?

Opportunity cost can be described as the potential benefits that is missed out on by a company when it chooses one option over another.

As the company is thinking of using the equipment for a new project, this implies that the opportunity cost of the equipment for the project will be $39,600 offered by a buyer.

Therefore, the value that should be assigned by the company to the equipment is $39,600.

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No matter what you do professionally, you should create and follow a ____. A. Resume
b. Career plan
c. Study guide
d. Job outline

Answers

The answer is B. career plan

No matter what you do for a living, you should make and stick to a career plan. As a result, choice (B) is accurate.

Structured planning and actively making decisions about one's own professional career are both components of career plan. A broad phrase for career management, which can refer to both individual and corporate career planning and development, is career management.

As part of a talent retention plan, career management includes talent management as well. According to Mary Valentich's PhD dissertation in living social work, the term "career management" was first used in 1978 to describe the process of putting into practice a career strategy through the use of career tactics in connection to a person's preferred career orientation.

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If there is an increase in the nation’s money supply, the interest rate will.

Answers

Answer:

also incrrease

the money supply increase the value of maney decrease

When a company uses a different company to produce all or part of the product, this is known as.

Answers

I think the answer might be called Vertical Integration

When a company uses a different company to produce all or part of the product, this is known as vertical Integration.

What is Capital Investment?

A company makes a capital investment when it buys tangible assets to utilize in achieving its long-term goals and objectives. Among the assets that are bought as capital investments are real estate, factories, and equipment.

The funding used may originate from a variety of sources, including venture capital deals and traditional bank loans. A company's choice to invest in capital is a long-term growth plan. A business prepares and executes capital investments to guarantee future expansion.

The main goals of capital investments are to boost operational efficiency, increase market share, and boost revenue. For the same objectives, the business may make a capital investment in the form of an equity ownership in the complementary operations of another business.

Therefore, Four approaches used to set approximate price levels are oriented around demand, cost, profit, and competition. When a company uses a different company to produce all or part of the product, this is known as vertical Integration.

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