Answer:
c. low and banks are unable to loan out all of their excess reserves. d
Explanation:
Lower required reserve ratio means banks have more money to lend. When banks are able to lend all its excess money, then money supply increases for citizens.
Answer:
The correct answer is letter "D": All of the answers are correct regarding a petty cash fund.
Explanation:
Petty cash funds are sums of money that are useful for businesses to take care of small payments. These payments are too low to allow a check to be written for payment. In some businesses, each department maintains its own small cash box for expenses such as office supplies per unit.
For accounting purposes, transactions involving petty cash are documented only when the petty cash was totally spent and a new fund is to be created and recorded with a voucher.
Answer: Option A
Explanation: In simple words, trade surplus refers to the economic condition under which a country's value of goods sold to other countries, that is, exports is greater than the value of goods it purchases from other countries ,that is, imports.
Trade surplus is seen as a positive indicator of economic growth as a country in surplus will behaving more money to invest in public core services and wont be spending their tax collections on interest and loans taken by international assignations such as IMF or world bank.
Hence from the above we can conclude that the correct option is A.
