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svetlana [45]
3 years ago
15

In a simplified banking system where deposits are the only form of money and the reserve ratio is 0.2, the deposit multiplier wo

uld be _____.
Business
1 answer:
Rudiy273 years ago
3 0

Answer:

5

Explanation:

The deposit multiplier or money multiplier is calculated by dividing 1 by the reserve ratio.

Money multiplier = 1 / 0.2 = 5

The money multiplier refers to the capacity that banks have to create money.

For example, I deposit $10,000 into my savings account and the reserve ratio is 20%. The bank then loans $8,000 to my neighbor so that he can buy a new bike. The bike's seller will then deposit the $8,000 to his/her bank. The seller's bank will then loan $6,400 to another client that purchases something else. The seller of that something else will then deposit the money into their bank, and the story goes on and on.

All of those transaction were possible because I deposited $10,000 and the banking system created money by multiplying my deposit.

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Suppose you are at a restaurant and your favorite dish costs $20. You are willing to pay up to $17 for your next favorite dish.
Andreyy89

Answer:

$17 gives 100 utils

So, $1 gives 100/17 utils

which implies that $20 gives (100/17)*20 = 117.65

So additional utils = $117.65 - $100 = $17.65

Hence, $17.65 is the additional utils

Explanation:

4 0
3 years ago
Read 2 more answers
Rouse Corporation's December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000
Scorpion4ik [409]

Answer:

See bellow

Explanation:

With regards to the above, Rouse total stockholder's equity is computed as;

= Preferred stock + common stock + paid in capital in excess of par (preferred stock and common stock) + retained earnings - Treasury stock

= $150,000 + $1,950,000 + $60,000 + $27,000,000 + $7,650,000 - $630,000

= $53,730,000

7 0
3 years ago
Consumers have the right to be protected against false and misleading information about goods and services.
Alexandra [31]
The right answer for the question that is being asked and shown above is that: "TRUE." Consumers have the right to be protected against false and misleading information about goods and services. This statement is true as far as the consumer's right is concerned.
3 0
3 years ago
Write the difference between right and responsibility​
Natali [406]

Answer:

I gotchu-

Explanation:

A responsibility is something you have to do or (at least) ought to do.

For example, it's the US Citizens responsibility to drive safely.

A right is something you are allowed to do or permitted to do. You have no obligation to exercise your right.

For example, it's the US Citizens right to vote during an election.

In conclusion, a responsibilty is something that the govt expects you to do, while a right is a privelege the govt gives you if you follow the laws.

P.S. To have rights, you must follow your responsibilities.

Hope this helped :)

4 0
3 years ago
Use the DuPont system and the following data to find return on equity.(Do not round intermediate calculations. Round your answer
hjlf

Answer:Return on Equity= 37.1%

Explanation:

According to the DuPont Analysis System,  

Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover

Return on Equity = 2.8 x 5.3% x 2.5

Return on Equity=0.371

Return on Equity= 37.1%

6 0
3 years ago
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