16. The economy of CBU has a monetary base of K500. The Central Bank of CBU requires commercial banks to hold as reserves of 10%. Assume that commercial banks do keep the reserves, and do not keep excess reserves. In CBU, people find it useful to keep some cash in their pockets. On average, in this economy, you can observe a currency-to-deposit ratio of 5%. a) What is the total value of deposits in the banks of CBU? b) How much is kept as reserves in this CBU economy? c) What is the money supply in this CBU economy? d) Calculate the money multiplier for this CBU economy. e) Calculate the bank deposit multiplier for this CBU economy. ow assume that in CBU, there is a money demand function given as follows: (M/P) d
=2700−10r iere (M/P) d
and r represent the money demand and interest rate respectively. f) What is the interest rate and money demand present if the money market is equilibrium? g) Using relevant solutions obtained before, draw a well labelled diagram that shows t money market demand and supply, as well as the equilibrium interest rate for economy. 1) What happens to the equilibrium interest rate if money supply reduces to K2,62 Show the result in the diagram drawn in (g) above. If the Central Bank wishes to raise the intẹrest rate to 10%, what money sup should it set? Show the result in a diagram. Explain the impact of an increase in income on the equilibrium established in (g)
Answers
a. Total Deposits = K5,000
b. Reserves = K500
c. Money Supply = K5,250
d. Money Multiplier = 10
e. Bank Deposit Multiplier = 0.1 or 10%
f. r = 47.5/P
g. r = 52.5/P
a) The total value of deposits in the banks of CBU can be calculated by dividing the monetary base by the reserve requirement ratio:
Total Deposits = Monetary Base / Reserve Requirement Ratio
Total Deposits = K500 / 0.10
Total Deposits = K5,000
b) Since the reserve requirement is 10%, the amount kept as reserves would be:
Reserves = Total Deposits * Reserve Requirement Ratio
Reserves = K5,000 * 0.10
Reserves = K500
c) The money supply in this CBU economy can be calculated by adding currency in circulation to total deposits:
Money Supply = Currency in Circulation + Total Deposits
Money Supply = (Currency-to-Deposit Ratio) * Total Deposits + Total Deposits
Money Supply = 0.05 * K5,000 + K5,000
Money Supply = K5,250
d) The money multiplier for this CBU economy can be calculated as the reciprocal of the required reserve ratio:
Money Multiplier = 1 / Reserve Requirement Ratio
Money Multiplier = 1 / 0.10
Money Multiplier = 10
e) The bank deposit multiplier for this CBU economy can be calculated as:
Bank Deposit Multiplier = Monetary Base / Total Deposits
Bank Deposit Multiplier = K500 / K5,000
Bank Deposit Multiplier = 0.1 or 10%
f) At equilibrium, the quantity of money demanded equals the quantity of money supplied, so:
(M/P) d = MS/P
2700 - 10r = K5,250/P
We also know that the currency-to-deposit ratio is 0.05, so:
M/P = 0.05 * Total Deposits + Currency in Circulation
K5,250/P = 0.05 * K5,000 + Currency in Circulation
Currency in Circulation = K25
We can substitute this value into the equation above to find the equilibrium interest rate:
2700 - 10r = K5,225/P
10r = K475/P
r = 47.5/P
g) The diagram below shows the money market demand and supply curves, with the equilibrium interest rate at r* and the equilibrium quantity of money at MS*.
[INSERT DIAGRAM HERE]
h) If the money supply reduces to K2,625, the new equilibrium interest rate would be:
2700 - 10r = K2,625/P
10r = K75/P
r = 7.5/P
This would shift the money demand curve down, resulting in a lower equilibrium interest rate of r**.
[INSERT DIAGRAM HERE]
If the Central Bank wishes to raise the interest rate to 10%, it would need to reduce the money supply to achieve this. The new equilibrium interest rate would be:
2700 - 10r = K5,250/P
10r = K525/P
r = 52.5/P
This would shift the money demand curve up, resulting in a higher equilibrium interest rate of r***.
[INSERT DIAGRAM HERE]
An increase in income would cause an increase in the demand for money, shifting the money demand curve up and leading to a higher equilibrium interest rate. This is because people would want to hold more money to finance their higher level of spending.
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Related Questions
In the U.S. free enterprise system, property rights give businesses the right to:
O A. ignore federal regulations while on private property.
B. sell property in foreign markets without paying taxes.
C. sell their property at any price they want.
D. use their employees' property at any time.
Answers
In the U.S. free enterprise system, property rights give businesses the right to sell their property at any price they want.
U.S. free enterprise system
The U.S. economy is a free enterprise system. That means that individuals own most of our country’s resources, and not the government.This means that supply and demand determine how our resources are used. This enables businessmen to sell their property according to them and not according to the government.
Free Enterprise systemIt is an economic system where a government places very few restrictions on the types of business activities or ownership in which citizens participate. Free enterprise countries usually have strong competition among businesses and allow citizens to purchase land and buildings, set their own prices, and choose who they want to do business with.
Thus, in the U.S. free enterprise system, property rights give businesses the right to sell their property at any price they want.
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Answer: D. Sell their property at any price they want.
Explanation:
Because I got it right.
This is for my class in finance
What is one way to minimize the impact of unplanned spending on a budget?
I will mark brainliest !!!
Answers
Answer:
1. Work with credit card companies. ...
2. Sell your stuff. ...
3. Earn extra income. ...
4. Take on a short-term money loan. ...
5. Re-budget to live below your means. ...
6. Ask for a paycheck advance. ...
7. Make sure you're prepared for next time.
whats the difference between life values and work values
Answers
Answer:
life values: are things you respect in your rights as a human
Authenticity Adventure Balance.
Bravery Compassion Challenge.
Citizenship Community Creativity.
Curiosity Determination Fairness.
Freedom Friendships Fun.
Generosity Growth Honesty.
Integrity Justice Kindness.
work values: are things you value and respect threw the service that you work with for example
Loyalty
A Strong Work Ethic.
Dependability and Responsibility.
Possessing a Positive Attitude.
Adaptability.
Honesty and Integrity.
Self-Motivated.
Motivated to Grow and Learn.
Strong Self-Confidence.
what is the name given to the development of a new good?
Answers
An invention is the name given to the development of a new good.
What an invention?Invention refers to the process of creating something that has never been made. It is a unique or novel device, method, composition or process.
An invention uses technology to solve a specific problem hence the name given to the development of a new good.
Examples of invention includes:
Manufacturing of Telephone.Manufacturing of printing press.Therefore, the name given to the development of a new good is called invention.
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Smith & Sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which were $1,900,000 during the year. On December 31, the Accounts Receivable balance was $300,000, and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustment. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. (Do not use negative signs with your answers.)
Answers
Answer: See explanation
Explanation:
Firstly, we need to calculate the amount of bad debt. This will be:
= Credit sales × Bad debt expense
= $1900000 × 2%
= $38000
Also, the adjusted balance of allowance account will be the addition of the uadjusted balance of Allowance account and the bad debt expense which will be:
= $21,400 + $38000
= $59,400.00
Then, the balance sheet will be:
Accounts receivables = $300,000
Less: Allowance for Doubtful Accounts = $59,400
Net Realizable value of Accounts receivables = $240,600
Eliza Conner owns a small clothing boutique. Eliza uses her personal checking account for both business and personal needs. How would you convince Eliza that she should open a separate
bank account for her business?
Answers
Answer:
1. It will cause them confusion throughout the tax calculating process.
2. Using a single account will make it difficult to keep payroll records.
3. Keep track of your personal expenses and earnings.
Explanation:
1. It is preferable to establish a separate account to separate the firm's actual income and expenses.
2. Payroll expenses are indistinguishable from personal expenses.
3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.
Uber is considering adding a service to their current offering. Instead of picking up people and taking them to their destination, Uber is thinking about adding a local pickup and delivery service for things such as documents, packages, and food products. With Walmart now offering pickup grocery service, a person could order and have Uber actually do the pickup and delivery. Focus groups indicate that there is a potentially large demand for this service. Before introducing this across the Uber system, Uber has chosen to try the service out in Phoenix and St. Louis. The pickup and delivery service is in the_________ stage of the new-product development.
Answers
Answer:
test market
Explanation:
From the question, we are informed about Uber who is considering adding a service to their current offering. Instead of picking up people and taking them to their destination, Uber is thinking about adding a local pickup and delivery service for things such as documents, packages, and food products. With Walmart now offering pickup grocery service, a person could order and have Uber actually do the pickup and delivery. Focus groups indicate that there is a potentially large demand for this service. Before introducing this across the Uber system, Uber has chosen to try the service out in Phoenix and St. Louis. In this case, The pickup and delivery service is in the test market stage of the new-product development.
In domain of marketing, A test market can be regarded as a geographic region as well as demographic group that is utilized in guaging of the viability of a particular product/service in the mass market before porting to a wide scale roll-out.
4/ "People 3. How can you are attracted to the poultry farming these days" Explain with practical examples.people are attracted to the poultry farming these days explain with particle example
Answers
we can attracted to the poultry farming these days by saying eveyone to involve in this work and be excited
when using an outside expert to develop and present a training course, a document that outlines the specifics of the training and the process by which the organization will determine its level of satisfaction should be prepared. what is this document called? multiple choice question. a training portfolio a certificate of intent a request for proposal a training mandate
Answers
Prospectus is the document that outlines the specifics of the training and the process by which the organization will determine its level of satisfaction prepared by outside experts.
This document is prepared by each and every organisation so that the data is collected at one place and can be provided a certificate of proposal for all the information present in the portfolio for the investors or the specific training process for the employees.
The training portfolio certificate is issued for the same so that it is a legal document in lieu of prospectus that provide and outlines the present situation of organisation.
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Can anyone help me think of an advertisement for a product I’m selling which is a drone.
Answers
Regardless of the variety of options available, all forms of advertising share two objectives: to influence customers so that they become leads or customers.
How to Influence Customers?
Consumer behavior is influenced by four psychological factors: attitude or set of beliefs, perception, learning, and motivation. Behaving in a manner that offers others the opportunity to change (their behavior, attitudes, thoughts, and ways) and/or accommodate your own wishes is one aspect of influencing skills. However, it is important to recognize that others may be unable to, unwilling to, or unprepared to respond to our request to be influenced. Human behavior is influenced by a variety of factors and characteristics. These are distinctions that are unique to the person with whom you are collaborating. Personality traits.
These are things that affect how a person interacts with other people. Institutional elements. Factors that affect the community and Public policy.
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What is the primary objective the customer's project manager focuses on when selecting a contract type?
A. Transferring all risk to the contractor
B. Creating a reasonable contractor risk with provisions for efficient and economical performance incentives for the contractor
C. Retaining all project risk, thus reducing project contract costs
D. None of the above
Answers
The primary objective of the customer's project manager when selecting a contract type is usually to create a reasonable contractor risk with provisions for efficient and economical performance incentives for the contractor. Option B is correct.
This is because it is essential to strike a balance between transferring risk to the contractor and ensuring that the contractor is motivated to perform efficiently and effectively. If the project manager selects a contract that transfers all risk to the contractor, it may result in an inflated price for the project or a subpar performance by the contractor.
Similarly, if the project manager chooses to retain all project risk, it may result in higher project costs due to the need for increased oversight and contingency planning. Therefore, a contract that provides reasonable contractor risk with provisions for efficient and economical performance incentives is the best option for achieving the project's objectives while managing costs and ensuring high-quality performance. Thus, option B is correct.
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TRUE OR FALSE: When using a debit card you must use your pin
Answers
Answer:
True
You must use your pin, because the bank has to verify that it is actually you, and not a robber/someone else.
Hope it helps!
What are u guys thankful for
Answers
Answer:
God waking me up this morning also thx for asking how bout you
Explanation:
You have decided to pursue a career in nursing. You are willing to relocate based on salary differences. The states you are willing to relocate to have the following average hourly wages: NY = $33.55, MA = $33.37, CA = $31.54, and FL $24.58. What is the mean salary for these options?
Answers
Your answer :
The mean of salary for these options is $30.76\
hope I helped. :)
system of allocating goods and services without prices
Answers
Answer:
Price Free
Explanation:
The system of allocating goods and services without prices, which is most commonly called “price-free”, is the one most commonly used in economics. The term “price-free” is used as a way to distinguish this system from the standard one, which is used in economics as “free to enter”.
Which situation best illustrates the role of households in the circular flow of
goods?
A. A runner buys a new pair of athletic shoes.
B. A website sells cheap books and magazines.
C. A factory produces screws used to build furniture.
O D. A company designs websites for big businesses.
Answers
A runner buys a new pair of athletic shoes best illustrates the role of households in the circular flow of goods. Thus, option A is correct.
What is circular flow of goods?The circular flow is the continuous movement of revenue, expenditure, and the production of products and services in an economy.
It demonstrates the circular redistribution of revenue between the producing unit and households. They include entrepreneurship, labor, capital, and land. Rent is the fee received in exchange for the fixed natural resource( also known as land)contribution. Wage is the comprehension received for the contributions made by human worker. Interest is the compensation received for the capital contribution. Profit is the reward for the contribution produce by the enterprise.
Therefore, we can conclude that option A is correct.
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reasons for bank faliure
Answers
Answer:
an imbalance of risk versus return,
failure to diversify,
offering products and services that management doesn't fully understand, and.
poor management of risks.
Explanation:
mark brainleist plz
Which of these can be considered ""online banking?""I. A brick-and-mortar bank that allows its customers to transfer money online.
Answers
The correct answer to the given question is: All of the given option I, II, and III is considered as online banking.
A user can utilize online banking to make financial transactions over the Internet. Internet banking or web banking are other names for online banking.
Customers can access practically all of the services typically provided by a local branch of banking online, including deposits, transfers, and online bill payment. Almost all banks offer some type of internet banking, which is accessible through desktop and mobile apps. One of the main benefits of online banking is convenience. Simple banking tasks like bill payment and money transfers between accounts can be completed whenever and wherever a customer chooses, 24 hours per day, 7 days per week.
Online banking is quick and easy. When two accounts are held at the same institution, money can be transferred between them almost instantaneously.
QUESTION:
Which of these can be considered “online banking?”
I. A brick-and-mortar bank that allows its customers to transfer money online.
II. A bank that has only a few branches but has customers depositing money online.
III. A bank that does not exist as a real building, but only has an internet presence.
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During a merger, when company buys another, who should be the beneficiaries of the money paid for the acquired company?
Answers
Answer:
Concessions are usually made during merger negotiations, Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired by or merged with another company.nation:
One of the most heated aspects of human racial politics is the contention that human races are genetically distinct. How is this issue addressed by the African replacement model versus the multiregional evolution model
Answers
The African replacement model and the multiregional evolution model have different explanations for the genetic distinctiveness of human races, which is a contentious issue in racial politics.
The African replacement model posits that all humans descended from a single population in Africa, and that subsequent migrations and interbreeding led to the development of distinct racial groups. This model suggests that genetic differences between races are the result of genetic drift and adaptation to local environments.
On the other hand, the multiregional evolution model suggests that human races evolved independently in different regions of the world and interbred with one another. This model posits that genetic differences between races are the result of long-term evolutionary processes and gene flow.
Both models recognize the existence of genetic differences between human races, but they offer different explanations for how these differences arose. Ultimately, the debate over the genetic distinctiveness of human races is a complex and multifaceted issue that is shaped by scientific research, historical and cultural factors, and political ideologies.
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Which of the following is not a common chain for a product to move from manufacturer to consumer?
direct to the consumer through direct mail advertising
manufacturer sells to wholesaler who then sells to retail stores who then sell to consumers
manufacturer sells to distributor who sells to the general public
manufacturer sells directly to select retailers who then sell to consumers
Answers
The option that is not a common chain for a product to move from manufacturer to consumer is: "manufacturer sells to a distributor who sells to the general public."
Typically, distributors sell to retailers or other businesses, not directly to the general public.
The other three options are more common in product distribution:
Direct to the consumer through direct mail advertising: In this model, manufacturers reach consumers by sending advertisements or catalogs, encouraging them to buy products directly from the manufacturer.A manufacturer sells to the wholesaler who then sells to retail stores who then sell to consumers: This is a traditional supply chain model where manufacturers sell products to wholesalers, who then distribute them to retail stores, where consumers can make their purchases.Manufacturer sells directly to select retailers who then sell to consumers: In this model, manufacturers bypass wholesalers and sell their products directly to select retailers, which then sell to consumers. This approach is often used for niche or high-quality products, allowing manufacturers to maintain greater control over the distribution process.Thus, a distributor would sell to retailers or wholesalers, rather than directly to the general public. The other three options involve direct-to-consumer sales, sales through wholesalers to retailers, and sales directly to select retailers, which are all common distribution channels in the market.
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the purchase of multiple plant assets for one purchase price is called a ______ purchase.
Answers
the purchase of multiple plant assets for one purchase price is called a blank purchase.
Answer:
(Plant/Current) or also called (lump-sum, group, bulk, or basket purchase)
Explanation:
Found the PDF with all the answers
You are really hungry and have been wanting to eat pizza all day. Instead of ordering a medium, you order a large. However, after about 4 slices, you don’t want anymore. This is an example of which factor?
Responses
diminishing personal value
diminishing personal value
substitutes
substitutes
buying power
buying power
diminishing marginal utility
Answers
The fact that you ordered a large pizza but after 4 slices, don't want anymore is an example of diminishing marginal utility.
What is diminishing marginal utility?Diminishing marginal utility refers to an economic principle that talks about how the utility or satisfaction that a person gets from each additional unit of an item increases at first, and then decreases.
For instance, the person was really hungry and then ordered a large pizza to be satisfied. But as they ate more slices, they were satisfied less and less and eventually ended up wanting no more slices of pizza.
In conclusion, this is diminishing marginal utility.
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6. Describe at least three things a bank would consider about you when deciding whether to give you a loan. (1-3 sentences. 3.0 points)
Answers
Explanation:
Your Credit History
Your Ability To Pay The Loan
Your Cash Flow History
Question #5
Multiple Choice
include businesses that buy products or services from another business to help produce products or services for their own
business to sell.
O Consumer markets
O Industrial markets
O Markets
None of the above
Answers
Answer:
I think industrial markets
midge feels that the price of gold is going to fall because inflation is on the decline. to profit from her prediction, assuming she is correct, midge should
Answers
Yes, Midge should sell short a futures contract today to profit from her prediction that the price of gold will fall due to declining inflation.
Selling short a futures contract involves selling a commodity, such as gold, that the seller does not currently own. The seller agrees to deliver the commodity at a future date, anticipating that its price will decline. If Midge believes that the price of gold will fall due to declining inflation, selling short a gold futures contract would allow her to profit from this prediction.
By selling short a futures contract, Midge can take advantage of falling gold prices. If the price does indeed decrease as she predicts, she can buy back the futures contract at a lower price and make a profit on the difference. This strategy allows Midge to benefit from her anticipation of declining inflation and the subsequent impact on the price of gold.
However, it's important to note that selling short carries risks. If Midge's prediction is incorrect and the price of gold rises instead, she could potentially incur losses. Therefore, careful analysis and consideration of market conditions and trends are crucial when engaging in futures trading to maximize the chances of making profitable trades.
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The Complete question is
Midge feels that the price of gold is going to fall because inflation is on the decline. To profit from her prediction, assuming she is correct, Midge should sell short a futures contract today.
drop the name of a person you want a follow back from on Instagram .
drop names and keep it going of the person of your choice and you get a follow back at the strike of midnight .
Answers
Answer:
addison rae lol because i need a bad bleep hahaha
Explanation:
Answer:
cardi b because I want to know how to get the Wap lol
If a company is going to export goods to a foreign market, the production process traditionally has been handled through:
fourth-party operations.
third-party operations.
domestic operations.
home-country operations.
domestic operations
Answers
If a company is going to export goods to a foreign market, the production process traditionally has been handled through domestic operations. Domestic operations refer to the manufacturing of goods, service delivery, and customer service activities that take place within a company's home country.
It can be performed in-house or by a third-party provider. For instance, a company that produces a product in the United States and then ships it to foreign markets is performing domestic operations because the product was manufactured in its home country.
Exporting a product is one example of how domestic operations can help a company expand its business beyond its home country.Exporting goods to a foreign market is not restricted to domestic operations, but it can also be performed by third-party operators.
Nevertheless, it is not a customary practice to have fourth-party operations involved in the manufacturing of goods because it may be difficult to monitor the quality of the goods being produced by the fourth-party.
Hence, home-country operations (domestic operations) are the most usual and viable option when exporting goods to a foreign market.
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The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Sox, Inc. For an operating period. Units Unit Cost Total Cost Units Sold Beginning Inventory 32 $72 $2,304 Sale No. 1 10 Purchase No. 1 28 80 2,240 Sale No. 2 32 Purchase No. 2 20 76 1,520 Totals 80 $6,064 42 Assuming Sox, Inc. Uses FIFO periodic inventory procedures, the ending inventory cost is
Answers
Assuming Soz, Inc. uses the FIFO periodic inventory procedures, the ending inventory cost is $2,960.
What is the FIFO periodic inventory system?The FIFO periodic inventory system assumes that goods sold first are the ones put in stock earlier.
To determine the ending inventory, the units bought last are used, and this calculation is always done at the end of the financial period, instead of when units are sold.
Data and Calculations:Units Unit Cost Total Cost Units Sold
Beginning Inventory 32 $72 $2,304
Sale No. 1 10
Purchase No. 1 28 80 2,240
Sale No. 2 32
Purchase No. 2 20 76 1,520
Totals 80 $6,064 42
Ending inventory = 38 (80 - 42) units
Ending inventory cost = $2,960 (20 x $76 + 18 x $80)
Thus, assuming Soz, Inc. uses the FIFO periodic inventory procedures, the ending inventory cost is $2,960.
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Budgeting information isO O O O restricted to dollars. not confined to finances. found strictly in accounting ledgers. confined to managerial decisions. inclusive of forecasting.
Answers
Budgeting is not confined to finances. While budgeting commonly involves financial planning and allocation of resources, it is not limited to financial aspects alone.
Budgeting is a broader concept that encompasses various aspects of planning, goal-setting, and resource management across different domains.
Budgeting involves the process of estimating and allocating resources, which can include financial resources, human resources, time, materials, and more. It is a systematic approach to plan and prioritize activities to achieve specific objectives.
Budgeting is relevant in many areas beyond finances. For example, organizations use budgeting to allocate personnel and determine staffing needs, plan and schedule projects, set targets for production or service delivery, and even for marketing and advertising initiatives.
Budgeting helps in aligning resources with goals, tracking progress, and making informed decisions in various operational and strategic areas.
Therefore, while finances are a significant component of budgeting, it extends beyond monetary considerations and is applicable to diverse aspects of planning and resource management within an organization.
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