Suppose all the bank customers made a pact and decided as a group to pay off...

Suppose all the bank customers made a pact and decided as a group to pay off their loans and to not take out any new loans, Ceteris Paribus,

		The money supply will increase.
		Excess reserves will decrease.
		The money supply will decrease.
		The money multiplier will decrease.

Expert Solution

Suppose all the bank customers made a pact and decided as a group to pay off their loans and to not take out any new loans, Ceteris Paribus,

The money supply will decrease.

(The above question is a hypothetical situation.However if all customers make a pact and as a group pay off their loan and also decide to not take out any new loans,it will lead to a fall in the money supply.The Federal Reserve controls the supply of money in the economy by means of monetary policy.It increases or decreases the Reserve Ratio of the banks as per the monetary requirement of the economy.Increase in Reserve ratio reduces the amount of money,while decrease in Reserve ratio increases the amount of money.Assuming banks have a set Reserve ratio as directed by the Federal Reserve,when the customers pay back their loans,and also decide to not take out new loans there will be an increase in the deposits of the banks.As the demand for loan decreases the supply of money will eventually decrease in the market.)

Rahul Sunny answered 2 years ago

A company wants to study the satisfaction level of all their customers. They decided to reach

1. A company wants to study the satisfaction level of all their customers. They decided to reach out to all of their customers with five survey questions. This is an example ofO Descriptive quantitative analysisO Inferential quantitative analysisO Meta-cognition analysisO None of the answer choices are correct2.A data set has two variables, house price and house size The researcher makes a hypothsis that the higher the size of the home the higher its price. In this analysis the independent variable...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation. Bank A (single line): 6.5 6.6 6.7 6.9 7.1 7.3 7.4 7.6 7.7 7.8 Bank B (individual lines): 4.4 5.4 5.7 6.2 6.7 7.7 7.8 8.4 9.4 9.9 The...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation. Bank A (single line): 6.6 nbsp 6.6 nbsp 6.7 nbsp 6.8 nbsp 7.0 nbsp 7.3 nbsp 7.5 nbsp 7.7 nbsp 7.7 nbsp 7.8 Bank B (individual lines): 4.4 nbsp...

Waiting times (in minutes) of customers in a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers in a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the mean and median for each of the two samples, then compare the two sets of results. Single Line 6.5 6.6 6.7 6.8 7.0 7.1 7.5 7.6 7.6 7.6 Individual Lines 4.2 5.4 5.8 6.2 6.5 7.6 7.6 8.6 9.2 9.9 The mean waiting time...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation. Bank A (single line): 6.5 6.6 6.7 6.8 7.1 7.4 7.4 7.6 7.7 7.8 Bank B (individual lines): 4.2 5.4 5.8 6.2 6.7 7.7 7.8 8.6 9.3 9.9 The coefficient...

If you pay off a loan early, you must also pay all the remaining interest payments...

If you pay off a loan early, you must also pay all the remaining interest payments along with the loan balance. Group of answer choices True False. Which of the following is correct? Group of answer choices Present values increase with a longer compounding period. Present values increase with a higher interest rate. Future values increase with a lower interest rate. Future values increase with a longer compounding period. 3. What does it mean when you see the message Error...

14.Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

14.Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation Bank A (single line) Bank B (individual lines) 6.4 4.3 6.5 5.5 6.6 5.9 6.8 6.3 7.1 6.7 7.4 7.6 7.4 7.8 7.7 8.4 7.7 9.4 7.8 9.7 The...

Suppose that under the Plan of Repayment one should pay off the debt in a number...

Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc.A friend of yours has financed $24,000 on the purchase of a new automobile,and the annual interest rate is 12% (1%per month). a)Monthly payments over a 60-month loan period will be how much? b) How much interest and principal will be paid within three...

The time value of money principle implies that all other things being equal, investments that pay off faster are preferred over those that pay off later.

The time value of money principle implies that all other things being equal, investments that pay off faster are preferred over those that pay off later.a. trueb. false

Suppose that customers arrive at a bank at a rate of 10 per hour. Assume that...

Suppose that customers arrive at a bank at a rate of 10 per hour. Assume that the number of customer arrivals X follows a Poisson distribution. A. Find the probability of more than 25 people arriving within the next two hours using the Poisson mass function. B. Find the probability of more than 25 people arriving within the next two hours using the normal approximation to the Poisson. C. Compute the percent relative difference between the exact probability computed in...

Question

Suppose all the bank customers made a pact and decided as a group to pay off...

Solutions

Expert Solution

Related Solutions

A company wants to study the satisfaction level of all their customers. They decided to reach

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers in a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

If you pay off a loan early, you must also pay all the remaining interest payments...

14.Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Suppose that under the Plan of Repayment one should pay off the debt in a number...

The time value of money principle implies that all other things being equal, investments that pay off faster are preferred over those that pay off later.

Suppose that customers arrive at a bank at a rate of 10 per hour. Assume that...