Answer:
$2,500
Explanation:
The maximum amount that can be deducted from the taxable income against the student loan interest paid is $2,500.
Hence,
For the given the amount paid by Wesley as the student loan interest i.e $5,000 exceeds the maximum limit of $2,500
Therefore,
Wesley can deduct maximum of $2,500 from her taxable income.
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.
The statement," Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run." is false.
<u>Explanation:</u>
Financial markets are important for bringing equilibrium to lonable funds and in the long run they affect the allocation efficiency of scare resources. They probably shift the scare resouces of the economy from savers to borrowers.
Financial market is an arena where trading of financial derivatives and securities occurs at lower transaction costs. The securities are namely bonds, stocks, etc.,
The role of financial markets are as follows,
- operation of modern economies
- provides the government/business entities access to capital
Answer:
A) Intuitive - Thinking
Explanation:
It is an intuitive problem-solving style because the employees are first absorbing information by reading the scientific papers, and afterwards, they go through a cognitive process in which new information and old information are related in order to reach new conclusions. This is the congnitive process that intuitives follow.
It is a thinking problem-solving style because the conclusions are now put into an orderly format: guidelines, programs, etc. Besides, the employees employ measuring techniques to evaluate the effectiveness of the programs. This kind of detailed, scientific approached is how thinkers go about solving tasks.
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