Answer:
$380 million
Explanation:
Given that,
Deposits = $120 million
Required reserve ratio = 20 percent
Total bank reserves = $100 million
Required reserve ratio refers to the portion of deposits that is kept with the reserve bank.
Required reserves:
= Deposits × Required reserve ratio
= $120 million × 0.2
= $24 million
Excess reserves:
= Total reserves - Required reserves
= $100 - $24
= $76
So, there is a excess reserves in this economy.
Money multiplier = 1/Required reserve ratio
= 1/0.2
= 5
Therefore, the total money creation potential of this deposit is as follows:
= Excess reserves × Money multiplier
= $76 × 5
= $380 million
Hence, an increase in deposit creation by $380 million.
Answer:
There are 10 categories of business law which are :
- Contracts,
- Securities Law,
- Intellectual Property,
- Income Tax,
- Pensions & Benefits,
- Trusts & Estates,
- Immigration Law,
- Labor Law,
- Employment Law and
- Bankruptcy.
Business laws have different fields which at taught in the law school. Like criminal law, Business law is also a category of law and these are the categories of business law which focuses on the working of corporations and businesses.
The amount of trumpeters total stockholder equity is $68,000
Answer:
D. $162
Explanation:
We know,
Using high-low method, variable cost per unit = (Highest maintenance expense - Lowest maintenance expense) / (Highest machine hours - Lowest machine hours)
Given,
Highest maintenance expense = $4,360
Lowest maintenance expense = $2,950
Highest machine hours = 2,500 hours
Lowest machine hours = 1,660 hours
Therefore,
Variable cost per unit = $(4360 - 2950)/(2500 - 1660)
Variable cost per unit = 1410/840 = 1.68
Total Fixed cost using lowest machine hours =
Total cost - (variable cost per unit x least machine hours)
= 2,950 - (1.68*1,660)
= $162
