Question 1
(a) State what happens to the money supply, money demand, value of money, and price level
if
(i) the Bank Negara sells government bonds.
(2 marks)
(ii) people decide to demand less money.
(2 marks)
(b) Suppose you are a member of the Board of Governors of the Bank Negara Malaysia
(BNM). The economy is experiencing a situation where people love to hold money rather
than deposit it in the bank.
(i) What changes in (a) the reserve ratio, (b) the discount rate, and (c) open-market
operations would you recommend to increase the growth in the economy?
(3 marks)
(ii) Based on part (i), how the change you recommend would affect the commercial
bank’s money supply, interest rate and aggregate expenditure.
Answers
(a) (i) When the Bank Negara sells government bonds:
Money supply decreases: Selling government bonds removes money from circulation and reduces the overall money supply in the economy.
Money demand remains unchanged: The decision to sell government bonds does not directly affect people's desire to hold money.
Value of money increases: With a decrease in the money supply, the value of each unit of money increases. This means that each unit of currency can purchase more goods and services.
Price level decreases: As the value of money increases, the general price level decreases because people can buy more goods and services with each unit of currency.
(ii) When people decide to demand less money:
Money supply remains unchanged: The decision to demand less money does not directly affect the money supply.
Money demand decreases: When people demand less money, they hold onto less cash and prefer to spend or invest it elsewhere.
Value of money decreases: With a decrease in money demand, the value of each unit of money decreases. This means that each unit of currency can purchase fewer goods and services.
Price level increases: As the value of money decreases, the general price level increases because people need to spend more money to purchase goods and services.
(b)
(i) To increase growth in the economy when people prefer to hold money rather than deposit it in the bank, the Board of Governors of the Bank Negara Malaysia could recommend the following changes:
(a) Decrease the reserve ratio: By lowering the reserve ratio, banks are required to hold fewer reserves against their deposits, allowing them to lend out more money, which increases the money supply and stimulates economic activity.
(b) Decrease the discount rate: A lower discount rate reduces the cost of borrowing for commercial banks, encouraging them to borrow more from the central bank and subsequently lend more to businesses and individuals, boosting economic growth.
(c) Engage in open-market operations to purchase government bonds: By buying government bonds from the open market, the central bank increases the money supply, providing commercial banks with additional funds for lending, which promotes economic expansion.
(ii) The recommended changes would have the following effects:
Commercial bank's money supply would increase: With a lower reserve ratio and increased funds from open-market operations, commercial banks have more money available for lending, leading to an expansion of the money supply.
Interest rates would likely decrease: The lower discount rate reduces borrowing costs for commercial banks, allowing them to offer loans at lower interest rates, stimulating borrowing and investment.
Aggregate expenditure would rise: The increased money supply, lower interest rates, and improved access to credit encourage borrowing and spending, leading to higher aggregate expenditure and economic growth.
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Related Questions
What is transnational company and multinational company?
Answers
The advent of free liberalism and free market ideas greatly supports multinational enterprises. A business may begin in one nation and eventually grow to other nations abroad, increasing its investments.
While transnational firms have operations in numerous nations without a centralized management structure. These businesses may begin in one nation and eventually branch out to other countries. They will begin as a new firm because they do not already have a home company to oversee them.
The significance of an MNC is that, despite its expansion into numerous other nations, a centralized management structure will always be in place, and the primary decisions will always be made by the home business. The home company's subsidiaries will include other international firms.
An international business doesn't have subsidiaries. The lack of a centralized management structure allows a global organization to make decisions that are appropriate for the operational environment. They might not share the values of the operating nation and instead only be interested in growing their businesses because they may not have any ties to that nation. Worldwide, there are transnational businesses that function on a global scale.
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Mrs. Turner is comparing her employer’s retiree insurance to Original Medicare and would like to know what services Original Medicare will cover if the appropriate criteria are met? What could you tell her?
Answers
Answer:
Original Medicare covers ambulance services.
Explanation:
Since in the question it is mentioned that the Turner compared her employer retired insurance with respect to the Original Medicare and also she would like to know whether what services are covered if the prescribed criteria are met
So here the original medicare covers the ambulance services as this is a pre hospitalization charges that are mentioned in the insurance policy
The federal health insurance program known as Medicare is available to the person whose age is 65 or older. The services that original Medicare will cover are ambulance services.
In hospitals, doctors' offices, and other healthcare institutions, the majority of medically required services and supplies are covered by Original Medicare.
Some benefits, including routine checkups, the majority of dental treatment, and eye exams, are not covered under original Medicare. Medical care received outside the United States is typically not covered by Original Medicare. It's possible to purchase a Medicare Supplement Insurance (Medigap) plan that offers emergency medical coverage abroad.Therefore, The services that original Medicare will cover are ambulance services.
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llus Patrick is selling a new hair product. He hopes to sell 10 bottles a month if he spends a one-time $100 on advertising. He is selling each bottle for $12. The product costs him $5.00 to make per bottle. What would the planned profit be after one year of sales?
A. $600 B. $740 C. $1050
Answers
Answer:
B. $740
Explanation:
In the given scenario we will be analysing the cost of production versus the revenue earned by Patrick. The difference between the two will give our profit
Total number of bottles produced a year = 10 * 12 = 120 bottles
Cost of production = Advertising + manufacturing cost
Cost of production = 100 + (120 * 5) = $700
Revenue = 120 * 12 = $1,440
Profit = 1,440 - 700 = $740
the expected rate of return on an investment is called
Answers
The expected rate of return on an investment is called the **expected return**.
The expected return is the anticipated average rate of profit or loss that an investor can expect to earn on their investment over a specific period. It is calculated by multiplying the potential returns of different outcomes by their respective probabilities and summing them up. By estimating the expected return, investors can assess the potential profitability and risk associated with an investment.
The expected return is a key metric in investment decision-making as it helps investors evaluate the attractiveness of different investment opportunities and compare them against each other. It serves as a benchmark for assessing whether an investment is likely to generate a satisfactory level of return, considering the associated risks. Investors use the expected return as part of their overall investment analysis and portfolio management strategies to optimize their risk-return tradeoff and make informed investment choices.
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What type of economy is the South African economy?
Answers
Answer:South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.
Explanation:
Answer:
South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.
Explanation:
No Explanations
Good evening! Did you eat today? Did you drink water today? Did you get outside for some fresh air or even anytime to chill? Did you make sure you are healthy? If you answer no to any of these questions.. please get some to food, water, fresh air or even time to chill. Please take care of yourself! Bye! :)
Answers
Answer:
I ate an egg sandwich. I drank some water. I went outside for a short walk.
Explanation:
Thanks for asking :)
How does investment in human capital impact a company's productivity?
The more workers a company has, the more it produces.
The more highly educated the workforce, the greater the production.
The more the workforce requires extensive training, the less production in the
long run.
The larger the workforce, the larger the management structure and the lower the
production.
Answers
Answer: Human capital is perceived to increase productivity and thus profitability. The more investment a company makes in its employees, the chances of its productivity and success become higher.
the difference between refactoring and re-engineering is: (select one) question 6 options: re-engineering is implemented before the system is placed in production, while refactoring is applied during requirements elicitation refactoring is a continuous process of improvement, while re-engineering takes place after the system has been in production for a long time re-engineering and refactoring are used to restructure most of the system to meet new requirements, since they require similar amount of effort
Answers
Refactoring is a continuous process of improvement, while re-engineering takes place after the system has been in production for a long time.
What distinguishes refactoring from restructuring?Any reorganization of a system's constituent pieces is restructuring. It's a pretty broad term that doesn't suggest any specific method of restructuring. Refactoring is an extremely specialized approach built on the use of minor behavior-preserving modifications (themselves called refactorings).
Data reengineering: What is it?By unifying data definitions and enabling source code reduction, data reengineering increases the lifespan of current systems. As a first step in data modeling, database technology migration, and as a phase in the reverse engineering process, it can also offer an accurate data model.
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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Compounding frequency and time value Personal Finance Problem You plan to invest $1,900 in an individual retirement arrangement (IRA) today at a nominal annual rate of 7%, which is expected to apply to all future years. a. How much vwill you have in the account at the end of 9 years if interest is compounded (1) annually, (2) semiannually, (3) daily (assume a 365-day year), and (4) continuously? b. What is the effective annual rate, EAR, for each compounding period in part a? c. How much greater will your IRA balance be at the end of 9 years if interest is compounded continuously rather than annually? d. How does the compounding frequency affect the future value and effective annual rate for a given deposit? Explain in terms of your findings in parts a through c.
Answers
The annual compounding is calculated as $ 3493.07. The calculations are given as follows:
Amount = Principal (1+r)n
where r is the interest rate per period & "n" is no.of periods
Amount, if int compounded annually:
Amount = $ 1900 (1+0.07)9
= $ 1900(1.07)9
= $ 1900*1.8385
= $ 3493.07
Amount, if int compounded semi-annually:
Amount = Principal (1+r)n
= $1900(1+0.035)18
= $1900(1.035)18
= $1900*1.8575
= $3529.23
Amount, if int compounded Daily:
Amount = Principal (1+r)n
= $1900(1+0.000192)3285
=$1900*1.8775
= $ 3567.25
Amount, if int compounded continuously:
Amount = Principal* ert
= $1900*e0.07*9
= $1900*e0.63
= $1900*1.8776
= $3567.46
2. Computation of Effective rate:
Compounding Particulars Formula Annually Semi Annually Daily Continously alculation(1+0.07)1-1(1+0.035)A2-1(1+0.000192) 365-1
Due to rounding off diff, we are having daily compounding effective int rate is more than continuous compounding effective int rate.
3. Excess amount in continuous compounding rather than Annual compounding:
Amount in continuous compounding = $ 3567.46
Amount in annual compounding = $ 3493.07
Difference = $74.39
4. If compounding frequency increases, interest will be calculated on principal & interest more frequently.
Thus it will be calculated on the accumulated amount results into int on int and leads to a higher amount in case of multiple compoundings.
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A company BB Ltd makes a product, selling for 20 pence - a can of baked beans. A major supermarket who currently buys their baked beans from a rival baked bean company asks BB Ltd if they will provide them with ‘Own Label’ baked beans for 16 pence a can, the costs of manufacture are as follows:
BB Baked Beans: Costs per can
Direct Materials 4p
Direct Labour 4p
Variable Overheads 3p
FO 4p
Manufacturing Absorption Cost 15p
Advertising 1p
Transport costs (variable) 1p
Total Cost 17p
Should they supply the Supermarket at this price (16p)?
What reservations would you have?
Answers
The total cost of the product is estimated to be 17p. Meanwhile, the idea of supplying it at 16p is not a sensible choice to make in order to be profitable. The product should be supplied at a price so that the business can cover its costs and earn profits from it.
The product must be supplied at a price that is higher than its cost.
They should keep a profit margin of at least 1 penny or higher.
the products of the calvin cycle are used to assemble larger sugars in the:
Answers
The products of the Calvin cycle, namely ATP and NADPH, are used to assemble larger sugars (such as glucose) in the process of carbon fixation.
This occurs when carbon dioxide is converted into organic molecules, specifically glucose, through a series of enzymatic reactions. These reactions are facilitated by the energy and reducing power generated during the Calvin cycle, ultimately leading to the production of larger sugars for use by the plant.
The Calvin cycle, also known as the light-independent reactions, is a crucial process in the conversion of atmospheric carbon dioxide (CO2) into organic molecules. The cycle occurs in the chloroplasts of plants, algae, and some bacteria.
During the Calvin cycle, CO2 molecules are fixed into organic compounds such as triose phosphates, which can then be used to synthesize glucose, fructose, and other sugars. These compounds are essential for plant growth and are also used as a source of energy for the plant.
The process of synthesizing larger sugars from the products of the Calvin cycle occurs in a process called starch synthesis or sucrose synthesis. Starch and sucrose are both examples of polysaccharides, which are complex sugars composed of multiple monosaccharide units. The process of building these larger sugars requires energy and enzymes.
Overall, the Calvin cycle plays a crucial role in the synthesis of organic molecules that are essential for the growth and survival of plants. By fixing CO2 into organic compounds, the cycle contributes to the global carbon cycle and helps to mitigate the effects of climate change.
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MetLife was able to dramatically expand its global footprint by acquiring Alico, a global player in the insurance business, from AIG in 2010 when AIG was in financial distress. This shows that not all diversification moves erode performance.
a) true
b) false
Answers
Answer:
True
Explanation:
It is true that not all diversification erodes performance. That is it is not all diversification moves that reduces performance or destroys it. Sometimes diversification could lead to greater risks or greater costs of investment. By diversifying and acquiring Alico metlife was able to increase and expand globally
An American Style Foreign Exchange Put Option 1) The Option Buyer Is Empowered To Press The The Right To Sell Foreign Currency At A Known Exchange Rate. 2) The Option Seller Is Empowered To Press The The Right To Sell Foreign Currency At A Known Exchange Rate. 3) Gives The Option Buyer At A Specific Time In The Future In Accordance With
An American style foreign exchange put option
1) The option buyer is empowered to press the
The right to sell foreign currency at a known exchange rate.
2) The option seller is empowered to press the
The right to sell foreign currency at a known exchange rate.
3) Gives the option buyer at a specific time in the future in accordance with a
The right to sell foreign exchange at a known exchange rate.
4) Mandatory requirement of the buyer at any time during the validity period of the option
sell foreign exchange at a known exchange rate
Answers
In an American style foreign exchange put option, the option buyer has the right to sell foreign currency at a known exchange rate, while the option seller is obligated to buy the foreign currency at that same known exchange rate if the buyer chooses to exercise the option.
Explanation:
1) The option buyer is empowered to exercise the right to sell foreign currency at a known exchange rate. This means that the buyer can decide to sell the foreign currency at the pre-determined rate anytime during the option's validity period.
2) The option seller, on the other hand, is obligated to buy the foreign currency at the known exchange rate if the option buyer decides to exercise the option. The seller does not have a choice in this matter, as they are bound by the terms of the option contract.
3) The American style foreign exchange put option gives the option buyer the flexibility to exercise their right to sell foreign currency at a known exchange rate at any time during the option's validity period. This can be advantageous if market conditions change and the buyer wants to lock in a favorable exchange rate.
4) It is not a mandatory requirement for the option buyer to exercise their right to sell foreign currency at the known exchange rate during the option's validity period. The buyer can choose not to exercise the option if they believe it is not beneficial to do so.
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Moped, Inc. purchased machinery at a cost of $44,000 on January 1, 2020. The expected useful life is 5 years and the asset is expected to have salvage value of $4,000. Moped depreciates its assets using the double-declining balance method. What is the accumulated depreciation for this asset on December 31, 2021?
Answers
Answer:
$28,160
Explanation:
Straight line dep rate = 1/Useful life of the aset * 100
Straight line dep rate = 1/5 * 100
Straight line dep rate = 20%
Double declining balance rate = Straight line dep rate * 2
Double declining balance rate = 20% * 2
Double declining balance rate = 40%
1st year depreciation = $44,000 * 0.40 = $17,600
2nd year depreciation = ($44,000-$17,600) * 0.40 = $10,500
Accumulated depreciation = $17,600 + $10,500 = $28,160.
So, the accumulated depreciation for this asset on December 31, 2021 is $28,160.
Leslie’s firm collected a huge amount of data. Over time, the employees felt that the applications slowed down. What should Leslie do with the data?
A.
archive rarely used data
B.
delete old data
C.
make duplicate copies of the data
D.
outsource the data
E.
look for patterns in the data
Answers
Answer:
A.
Explanation:
Data archiving is a method used to move data that is no longer in use. In this method, a business archive its old data to a separate storage device for long-term retention of the data.
Data that is no longer actively used but is important for regulatory or operational purposes such as emails, files, records, etc. can not be deleted. So, the business opts for the data archiving method.
In the given case, Leslie should also go for data archiving. There are two ways of archiving the data. One, tape archiving and cloud archiving.
Therefore, option A is correct.
What is the main difference between goods and services?
Answers
PLEASE HELP ME!! please, please,, please explain how you got it, thank you
Answers
Answer:
I think the second one.
1/10 cookies per pizza
__ I can help protect clients’ confidential information.
A. Anti-virus software
B. Piracy
C. Identity theft
D. Licensing infringement
Answers
Answer:
a.
Explanation:
I think it’s a. Or anti-virus software because, it helps to prevent or try and help prevent someone from stealing your personal information.
One of the major trends in the lodging sector is that organizations are becoming more international.
O False
O True
Mark this and return
Save and Exit
Nex
Subm
Answers
What system did merchants in early centuries use to make commercial transactions easier
Answers
In the early centuries, merchants made use of the Mercantilism system for commercial transactions.
What is Mercantilism?In simple terms, it is an economic theory and practice known as "mercantilism," which was prevalent in Europe from the 16th to the 18th century.
Mercantilism advocated governmental regulation of a country's economy with the goal of enhancing state power at the expense of competing for national powers.
According to the theory, a strong nation should have a sizable population because a sizable population would offer a supply of labor, a market, and soldiers.
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which microbes is used to extract ethanol from fruit juice and sugar molasses ·
Answers
Answer:
Yeast
Explanation:
A microbe (microorganism) is a microscopic organism which either exist in its single-celled form or as colony of cells. Example of microbes are bacteria, archaea, algae, protozoa.
Yeast is a microbe used in the extraction of ethanol from fruit juices and sugar molasses. Saccharomyces cerevisiae is a specie of yeast which reacts with fruit juices and sugar molasses in the absence of Oxygen to produce ethanol and carbon dioxide.
Competition among sellers (producers) lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy.
A. Explain how the above (free market competition) would be an advantage for you, the consumer.
B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.
Answers
Answer:
A. Explain how the above (free market competition) would be an advantage for you, the consumer.
Free market competition is advantageous to the consumer because it promotes the supply of many goods and services, at a lower price than other market structures like oligopoly or monopoly.
In the free market, there are many firms, none have market power, and they produce goods and services that have many substitutes. This means that if a firm raises the price of a good, consumers simply flock to another firm that offers a similar product. This mechanism obliges firms to offer their goods at the market-clearing price, which is the best price for the consumer.
B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.
Oligopolies ocurr when there are only a few firms in the market, and monopoly ocurrs when there is only one firm. These two market structures allow firms to charge higher prices than the market-clearing price, and to supply less quantity than the market-clearing quantity.
Besides, oligpolies and monopolies are characterized by high barriers to entry and exit, which keep potential competing firms out of market, inhibiting competition.
According to this image :
1- What is the age range of the generation with the highest amount of household debt?
2-Which is the only generation to decrease its average debt from 2019 to 2020?
3-Compare the rate at which Gen Z’s debt increased from 2019 to 2020 compared to other generations.
With an increase of 67.2%, Gen Z’s debt increased at a much higher rate than other generations.
4-Calculate how long it would take for Gen Z’s average debt ($16,000) to reach Gen X’s level of average debt ($140,000) if it continued to increase at its current rate (67.2% per year).
5-Develop a logical argument why Gen Z’s debt is rising at such a high rate when the Silent Generation’s debt is decreasing.
I have to turn this worksheet today, So please ANYONE help me out please ASAP..
Answers
Answer:
1. Gen X 41-56years
2. Silent Gen reduced debt by 4.6%
3.Baby boomers increased by 0.3% from 2019 to 2020, they had the least increase in debt
Gen X followed with 3.5% increase from 2019 to 2020 while Millenials had 11.5% increase in debt between 2019 and 2022. Even though Gen Z debt increased by 67.2%, they still have the lowest debt overall into two years.
4.Gen Z average debt $16,000
Gen X average debt $ 140,000
In 5years, it will meet up with Gen Xs level of debt
5. The silent Gen are the elderly, mostly retired and no longer taking new loans while Gen Z is the younger generating, newly exploring the world, teenagers and students, young school leavers and new work force taking loans at the slightest offer. The silent age are no longer active, they are most been taken care of and won't be taking loan facilities for any purpose. Student loan, technology etc is available and most suitable for the age range of Gen Z, hence the difference in the loan dimension.
What is the marginal revenue and marginal cost for this diagram?
What type of market is this? Explain your answer
Answers
Marginal revenue :
2060120200300420560Marginal cost :
108210192640It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.
Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.
Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.
Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.
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different between profession and professional human resources in points
Answers
Answer:
Explanation:
Hi
What is descriptive of a market economy?
Answers
Answer: A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace. Key Takeaways
Explanation:
During an event, the primary exchange that occurs between the fan and the event is
answer choices
a. money
b. tickets
c. entertainment
d. engagement
Answers
During an event, the primary exchange that occurs between the fan and the event is engagement. This exchange usually involves a two-way process between the fans and event planners, creating a direct connection between the two.
Such a connection is usually through a series of experiences shared between the event and its participants.Apart from money and tickets, fans receive an immersive and memorable experience, which makes them feel engaged and connected to the event. To create this engagement, event planners have to create an environment that keeps fans entertained, informed, and excited throughout the event. Event organizers use various strategies to make fans feel engaged, such as interactive sessions, social media, games, and contests.
These strategies aim to create an emotional connection between the fans and the event, encouraging more participation and loyalty from the fans, which will lead to increased revenue.Overall, the primary exchange that occurs between fans and events is engagement, as fans expect to receive a memorable and immersive experience from the event planners. This connection can encourage more participation from fans, leading to increased revenue and a successful event.
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In general, how long does it take to accomplish a long-term goal?
A.
a few days to a week
B.
a few weeks to a month
C.
a few months to a year
D.
more than a year
Answers
Answer:
D
Explanation:
long term goals require time and planning.They are not something you can do this week or even this year.Long-Term goals usually take 12 months or more to achieve
which material would be the best insulator?
a) Plastic
b) copper
c) steel
d) wool