Answer:
The bank will create excess reserve of $200 billion
Explanation:
The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.
Money multiplier = 1
/Legal Reserve Ratio = 1/0.2 = 5
Excess Reserve Created = A x (1
/Legal Reserve Ratio)
Where: A = New currency deposit = $40
Legal Reserve Ratio = 0.20
Excess Reserve Created = $40 x (1/0.2) = $40 x 5 = $200 billion
The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.
The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.
Answer:
stocks market value is $25
so correct option is d
Explanation:
given data
annual dividend = $5 per share
par value = $30
required return = 20%
To find out
stocks market value
solution
we consider stock market value is M
we know here annual dividend is $5 per share
so we can say
annual dividend = market value × require return .................1
put here all these value
annual dividend = market value × require return
5 = 20% × M
M = 5 / 20%
M = 5 / 0.20
M = 25
stocks market value is $25
so correct option is d
The correct answer would be C. Companies that manufacture identical items through a series of uniform production steps use a process costing system to determine cost per unit sold. It is a operation costing where in every process the product goes a certain cost is being ascertained to determine the final cost of the whole production.
Answer:
The given case is a Civil Matter case.
Explanation:
Civil cases often involve individuals or organizations such as companies, generally regarding disputes over money - or any species of capital. A case of civil matter usually begins when one person or business - the plaintiff -claims to have been prejudiced by the actions of another individual or organization - the defendant. The plaintiff then requests the court for deliverance by filing a complaint and starting a court case. The plaintiff may ask the court: 1. To award damages (money compensation); 2. For an injunction, to limit or require compulsory actions from the defendant; 3. To issue a declaratory judgment, in which the court determines the parties' rights under a contract or statute.
Eventually, to mitigate the case, the court - a judge or a jury - will determine the facts of the case and apply the appropriate legislation to it. Then, the court - or jury - will determine which legal consequences will occur given the parts' conducts.
Answer:
employees
Explanation:
Being a socially responsible company can bolster a company's image and build its brand. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.