1. Which one of the following changes in working capital is least likely if sales increase?
A. An increase in accounts payable
B. an increase in inventories
C. A decrease in accounts receivable
D. An increase in notes payable
2. Using the simple deposit multiplier, find the amount of securities that the Federal Reserve Bank needs to purchase in order to increase deposits by $180,000, if the required reserve ratio is 14%.
A) $25,200
B) $16,600
C) $7,200
D) $4,800