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Lady_Fox
1 month ago
14

You take $150 you had kept under your mattress and deposit it in your bank account. Suppose this $150 stays in the banking syste

m as reserves and banks hold reserves equal to 12.5 percent of deposits. The total amount of deposits in the banking system increases by_______, and the money supply increases by______.
Business
1 answer:
Nady [3.6K]1 month ago
3 0

Answer:

The result is $12.

By applying the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.

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Free_Kalibri [3773]
Calculate 0.13 multiplied by 75: $9.75.
Now, multiply that result by 5: $48.75.
7 0
2 months ago
Read 2 more answers
Which of the following is an example of external-operational communication?
Mariulka [3825]

Response:

c. Advertisements published by companies on their websites for the general public

Explanation:

External-operational communication is characterized as dialogue, interaction, or correspondence related to work that a business entity conducts with individuals or groups, such as customers, government bodies, suppliers, etc., external to the organization.

An example of external-operational communication is the advertisements that companies display on their websites targeting the general public.

4 0
2 months ago
Your annual sales are $240,000. The sales are spread evenly over four quarters. What are your sales in each quarter?
harina [3808]

Answer:

60000

Explanation:

240,000 divided by 4

6 0
2 months ago
On January 1, 2019, Fitbit goes public and issues 50 million shares at $20 per share. Fitbit had 200 million shares prior to goi
soldi70 [3635]

Answer:

$600 million

Explanation:

On January 1, 2020, the balance of common stock & APIC is derived as follows:

Common stock & APIC = Paid-In Capital + Capital raised from selling 50 million shares at $20 each - Treasury Stock

This gives:

Paid-In Capital = $500 million

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Inserting the numbers leads to:

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Therefore, Common stock & APIC = $1500 million - $900 million = $600 million

6 0
2 months ago
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