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Ann [662]
3 years ago
12

Suppose a banking system has $200 million in deposits, a required reserve ratio of 10 percent, and total bank reserves of $35 mi

llion. then the potential increase in deposit creation for the whole banking system is equal to
Business
1 answer:
Fudgin [204]3 years ago
7 0
<span>To find the potential increase, the equation would be the amount of excess reserves (or deposits multiplied by the reserve ratio) multiplied by (100 divided by the required ratio). In this case, that would be (35 - ($200M * 0.10)) * (100/10), or (35M - 20M) * (10). This would leave 15M * 10, or $150 million in potential increase in deposits for the entire banking system.</span>
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Answer:

D

Explanation:

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

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3 years ago
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Masteriza [31]

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False.)
Why? Paramedics have the minimal amount of machines to manage, they’re more versed in having excellent skills in well, being paramedics, lol. Hope this helps and good luck!! :)
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