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2 years ago

The banking system in the united states is referred to as a fractional reserve banking system because?

1 answer:

5 0

The banking system in the United States is referred to as a fractional reserve bank system because banks hold a fraction of deposits on reserve.

The Reserve bank of India chiefly referred to as RBI is India's valuable financial institution and regulatory frame chargeable for the regulation of the Indian banking gadget. It is below the possession of the Ministry of Finance, authorities of India. It's miles chargeable for the manipulation, difficulty, and maintaining delivery of the Indian rupee.

The reserve bank acts as a regulator and supervisor of the general financial system. This injects public self-belief into the countrywide economic gadget, protects hobby costs, and gives wonderful banking alternatives to the general public. Subsequently, the RBI acts as the company of countrywide forex.

The Federal Reserve Banks are installed like private corporations. Member banks keep stock inside the Federal Reserve Banks and earn dividends.

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You might be interested in

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

Scrat [10]

The answer to your question is the area under the demand curve

6 0

3 years ago

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and

Tomtit [17]

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

4 0

3 years ago

The demand for land, labor, and capital used to produce a good depends on which of the following factors?

marysya [2.9K]

D) the availability of land, labor and capital

I think

8 0

3 years ago

the financial meltdown of 2008 was in part due to , demonstrating the dangers of relying too heavily on the quantitative techniq

Aleks [24]

The financial meltdown of 2008 was in part due to <u>quants </u>demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.

<h3>How did the financial meltdown of 2008 happen?</h3>

There were several reasons for the financial meltdown that the United States saw in 2008 and one of them was the overreliance on Quants.

Quants were quantitative models that were used to decide on the financial assets to invest in. They failed to predict the risks associated with Mortgage Backed Securities and this contributed in part to the meltdown.

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3 0

2 years ago

The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w

nikitadnepr [17]

Answer: the answer is 90.0

Explanation:

From the question above, we are given:

G = 11

I = 4

X = M = 0

Consumption function is:

C = k + cY

Where:

k = 3

c = 0.8

The GDP of a nation is given as:

Y = C + I + G + NX

By imputing the values into the GDP equation, we have:

Y = k + cY + 4 + 11 + 0

Y = 3 + 0.8Y +15

Y - 0.8Y = 18

0.2Y = 18

Y = 90.0

6 0

3 years ago