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mafiozo [28]
4 years ago
12

Why does a bank sometimes hold excess reserves?

Business
2 answers:
svetoff [14.1K]4 years ago
6 0
The answer is d: to protect against high prices
GenaCL600 [577]4 years ago
4 0
The answer is d to protect against high prices☝️
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Evaluating your payoffs as gains or losses relative to an arbitrary baseline distorts your decisions and is a problem associated
7nadin3 [17]

The study of an agent's or individual's decisions is known as decision theory. The official decision-making process concludes with evaluation. Evaluating the consequences may assist the decision-maker in learning lessons that will help her make better decisions in the future.

  • Loss aversion is the correct answer because the general notion of the "loss-aversion" theory is that if an individual is provided with two equal alternatives, one of which is presented in terms of prospective profits and the other in terms of potential losses, the former option will be chosen.

  • Loss aversion is a cognitive bias or psychological phenomenon that explains why the agony of losing is twice as powerful psychologically as the pleasure of winning.

Therefore, representativeness, cognitive bias, and overconfidence are not factors relative to an arbitrary decision distortion. So, Loss aversion is the correct response to the question.

For more information regarding arbitrary baseline, refer to the link:

brainly.com/question/11224360

5 0
2 years ago
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If a firm decides it is in the best interest to collaborate on a development project, how would you recommend the firm choose a
Ahat [919]

Answer:

We live in a related world more so now than any time in recent memory before.In this scenery no business can have all the assets to take an interest completely in the worldwide commercial center without key unions, coordinated efforts and organizations.  

Effective endeavors are continually searching for assets to ceaselessly enhance their ebb and flow tasks and have the accepted procedures to stay ahead in the race.  

Joint effort is a vehicle to supplement the assets of an association and addition abilities to meet certain all around characterized targets. The substance might be deficient with regards to specific assets like money related quality, aptitudes and deliberately it might not have any desire to put resources into their zones of "shortcoming" for some an explanation.  

The firm might need to investigate for an imminent accomplice from its realized business system to begin with. Business and informal communities can furnish leads by taking part in conversations with them. Different zones for prospecting could be from the databases of mechanical improvement offices. Tried and true outsider specialist co-ops - offices right now be locked in to discover reasonable possibilities.  

By the day's end, organizations are about connections. Common regard for one another and shared qualities are important to have an effective organization to meet every others key business targets through such a joint effort. Essentially each ought to be expertly dedicated to such a dare to guarantee goals are met in soul and word.  

The Collaboration ought to be reported in an itemized way that would show the particular jobs of the separate gatherings.  

The manual should record governing rules for taking an interest accomplices to assume out their jobs genuinely.  

Key audit gatherings, choices on money related expenses must incorporate the state of both the substances in a reasonable way.  

Occasional outsider reviews of tasks ought to be a fundamental part of the manual.

3 0
3 years ago
Firm A and Firm B have the same total assets, ROA and profit margin. However, Frim B has a higher debt ratio and interest expens
SashulF [63]

Answer:

A.) Firm B must have a higher ROE than first A.

Explanation:

Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.

Interest expense is the amount that is paid to service a loan.

This implies that company B has higher loan portfolio than Company A.

Considering the accounting formula

Equity= Asset- Debt

So an increase in debt will result in a decrease in equity.

Return on equity= Net income/Equity

It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.

6 0
3 years ago
An increase in the price of one good will have what effect on its complement?a. no effectb. increase in demandc. decrease in dem
Juliette [100K]

Answer: The correct answer is <u>"c. decrease in demand".</u>

Explanation: Complementary goods are all those products that depend on each other. That is, they are so closely linked that the behavior of one inevitably affects the behavior of the other.

The classic example of complementary goods is that of cars and gasoline. The sale of the former may be affected by an increase in the price of the latter; and, at the same time, the consumption of the second depends on the sale of the first.

7 0
4 years ago
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The line of authority that extends from the upper levels of management to the lowest levels of the organization is ____________.
lyudmila [28]

Answer:

<h2>The answer in this case would be option D. given in the answer choices or Chain of Command.</h2>

Explanation:

  • Under the chain of command system, the line of authority or organizational control runs hierarchically from the top to the low levels of the administrative management chain.
  • The organizational functions, duties, assignments and responsibilities are arranged according to the hierarchical structure of the organizational management or administration under the chain of command system.
  • The departmental designations and divisions under the chain of command are also guided by hierarchical classification of the organization management.The officials under the department of the lower levels of management usually work under and report to the middle or top management levels and the departments and officials working in the mid level management generally reports to the top level management in any business organization.
  • Hence, the line of control or authority flows or runs from the upper/top level to the relatively lower levels of management under chain of command.
8 0
4 years ago
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