Suppose the Fed decides to increase the money supply. It purchases a government bond worth $2,000 from Antonia, a private citizen. Antonia deposits the check in her account at First National Bank. Supposed the required reserve ratio is 0.2 (20%). (a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.
(b) How much money will be generated in this banking system?

(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.

Antonia deposits $2,000 in First National Bank.

Then First national Bank lends $1,600 to client X that uses the money to purchase something. The seller of that something deposits the money In Second Federal Bank.

Second Federal Bank then lends $1,280 to client Y that decides to use that money to pay his rent. Client Y's landlord then deposits the money in Third State Bank.

Third State Bank will then lend $1,024 to client Z...

(b) How much money will be generated in this banking system?

total money generated in the banking system = Antonia's deposit x money multiplier

money multiplier = 1 / required reserve rate = 1 / 0.2 = 5

so the total money generated = $2,000 x 5 = $10,000

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.  

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.