Ask Question
BusinessBusiness
22 January, 20:02

Suppose you have $10,000 in your checking account. you withdraw $500 cash from your account and hide it under your pillow for future use. if the required reserve ratio is 10%, what will be the maximum impact on money supply today as a result of your action?

a. the money supply will decrease by $4,500.

b. the money supply will decrease by $5,000.

c. the money supply will decrease by $500.

d. there will be no impact on the money supply.

+5
Answers (1)
  1. 22 January, 20:27
    0
    A, the money supply (how much currency in a country's economy at a time) is going to decrease by $4500! A required reserve ratio is basically a sort of rule that the government sets that says how much of a person's deposits must be set towards reserves.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose you have $10,000 in your checking account. you withdraw $500 cash from your account and hide it under your pillow for future use. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
You purchased one hundred shares of AT&T stock. The company pays 20 cents per share to each shareholder (That's you!) at the end of this quarter. This money is called: a Annual rate of return b Purchase price c Dividends d Interest
Answers (1)
The 2013 income statements of Leggett & Platt, Inc. reports net sales of $3,746.0 million. The balance sheet reports accounts receivable, gross of $482.6 million at December 31, 2013 and $465.4 million at December 31, 2012.
Answers (2)
A demand curve slopes down because of a. the inverse relationship between price and quantity demanded. b. can slope up or down depending on the tastes of the consumer. c.
Answers (1)
Andy derives utility from two goods, potato chips (p) and cola (c). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:
Answers (1)
A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger.
Answers (1)
New Questions in Business
A what type of budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year
Answers (1)
Barton Industries has operating income for the year of $3,500,000 and a 36% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 8%. What is the firm's EVA?
No Answers
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. his insurance agent told him the policy would be paid up if he reached age 100. the present cash value of the policy equals $250,000.
Answers (1)
On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
Answers (2)
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year.
Answers (1)
Home » Business » Suppose you have $10,000 in your checking account. you withdraw $500 cash from your account and hide it under your pillow for future use.
Sign Up Forgot Password?