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Lady_Fox
11 days 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 [3.2K]11 days 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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Scilla [3549]

Answer:

Two organizational structures available to the company:

Functional structure: This is the most typical type of organizational structure and may already be in use by company XYY. In this model, employees are arranged into departments based on specific roles or functions.

The essential divisions may comprise a production department, a marketing department, a finance or accounting department, and a sales department.

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4 0
1 month ago
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You have had $5,500 in a Roth IRA account for 3 years earning 1.2% annual interest. During those 3 years, the rate of inflation
marusya05 [3428]

Answer:

Decrease in purchasing power =$(96.67)

Explanation:

To determine the alteration in purchasing power, we assess the value of the IRA after three years relative to its worth considering prices from three years ago.

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The purchasing power of $5,700.38 based on past prices for three years earlier

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Decrease in purchasing power =$(96.67)

8 0
1 month ago
(Tough question, you got this!) Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 unit
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Explanation:

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1 month ago
If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000, A. Paid-In Capital in Excess of Par will be cr
Katen [3220]

Answer:

option A is the correct choice

Paid-In Capital in Excess of Par will receive a credit of $150,000

Explanation:

Details provided:

shares = 5000

share price = $5 / common stock

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Now, we need to determine which option is correct

solution

We know we have a cash value of $175,000;

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Total common stock = 5000 × 5

Total common stock value = $25000

Thus, paid capital in excess = cash - total common stock value

Paid capital in excess = 175000 - 25000

Paid capital in excess is $150000

Thus, option A is correct

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