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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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The correct answer is:  [C]:  "coinsurance" .
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3 years ago
Consumer Goods Corporation sells products that are poorly made. Tina, who has never bought a product from Consumer Goods, files
kolbaska11 [484]

Answer: Tina doesn't have a standing

Explanation:

From the information given in the question, we are told that Consumer Goods Corporation sells products that are poorly made.

We are further told that Tina, who has never bought a product from Consumer Goods, files a suit against the firm alleging that its products are defective.

The firm could ask for dismissal of the suit on the basis that Tina doesn't have a standing. This is because Tina has never bought their goods before and therefore shouldn't be alleging that the product of the company is bad. Assuming Tina has bought their products before, then it'll have been harder for the firm to ask for dismissal.

3 0
3 years ago
The Career Cycle gives "10 tips on content and structure" of your resume. As a student, you may not have specific technical skil
bagirrra123 [75]

<u>Answer:</u>  Personal goals and team fit.

<u>Explanation:</u>

As a student I would not have any experience which I can talk about at the job interview. It is important that I show case my personal goals which are short term and long term career goals. I also need to show that I desire to join the team and have the ability to work as a good team member.

The common skills required to fit into a team such as management skills, leadership skills, communication skills, time management skills, organizing skills etc employers will not understand when I fail to take time to develop these skills.

7 0
3 years ago
Each year a cash grant is given to a deserving college student. The grant consists of the interest earned that year on a $440,00
Harlamova29_29 [7]

Answer:

The cash award will be equal;l to $444422.01

Explanation:

We have given amount invested P = $440000

Rate of interest r = 8.3%

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As the amount is compounded on daily basis

We know that 1 year = 365 days

So rate of interest r=\frac{1}{365}=0.00273 %

Time period n = 365

We know that final amount is equal to A=P(1+\frac{r}{100})^n

So A=440000(1+\frac{0.00273}{100})^{365}=444422.01$

So the cash award will be equal;l to $444422.01

6 0
3 years ago
One disadvantage of renting a home is , which directly affect what the renters can and can’t do in and around the house. On the
slava [35]

disadvantage is that the land lord can raise the rent easily while you can not do anything about it.Lower insurance, When renting a home, we would most likely restricted to make any modification that we like to the home. (such as we are not allowed to change the color of the paint)

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But a benefit is that there is no mortgage.

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