Answer: Option (C) is correct.
Explanation:
The required reserves are the reserves that banks have to keep it with central bank. Required reserves are the fraction of Check-able deposits. The required reserves are determined by multiplying the deposited amount with the required reserve ratio.
Required reserves = Deposited amount × Required reserve ratio
Required reserve ratio is set by the central bank.
The situation where the buying power of money in terms of goods and services increases is called <u>deflation</u>
In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.
Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.
Learn more about deflation here: brainly.com/question/13562161
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the right answer is TRUE, i got it wrong for putting it as false
Explanation:
Incomplete question. However, i infer you want to know what the annual net income implies.
Thus, itis important you know that the annual net income is calculated after taxes are deducted from the total salary one earns in a year's. So to determine the value, you need to know the total taxes for the year.
Answer:
The correct answer is: The expected rate of return for the stock would be around 7%.
Explanation:
The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.
In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.
