Required reserves of banks are a fixed percentage of their fixed deposits.
<h3>What are required reserves?</h3>
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank. Required reserves are used to control the amount of loans a bank can give out. This in turn affects the money supply in the economy.
Reserves are also needed to meet unforeseen circumstances.
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Answer:
The distribution channels are the different entities involved in the business structure and marketing of a product. Its main objective is to ensure that the product is transferred from the factory to the final consumer.
Explanation:
The distribution channels can be classified into:
Consumer goods channels
They are divided into:
Direct channel
It goes from producer to consumer. It is the simplest that exists to distribute consumer goods, as it does not involve intermediaries. Examples: Avon and Amway
Retail Channel
The distribution follows the following scheme: producer-retailer-consumer. It includes all the large supermarket chains and stores. It is the most visible channel for the consumer. Examples: Wal-Mart stores, frequent cars, gas stations.
Wholesale channel
The distribution follows according to the scheme: producer-wholesaler-retailer-consumer. The distribution of medicinal and food products is done using this channel. The goods that are in great demand are distributed through these channels. Examples: travel agencies, small shops in the villages.
Agent/Broker Channel
Follow the following scheme: producer-agent-retailer-consumer. Producers prefer to incorporate intermediary agents to get their products to the retail market. The products are sold to large retail companies. Examples: distribution chains of perishable food and oil.
Double channel
The sale of the product to the consumer is done following the scheme: manufacturer-agent/intermediary-wholesaler-retailer-consumer. Sometimes manufacturers use intermediary agents. These employ wholesalers who sell to large chain stores or small stores. Examples: market franchises and exclusive importers.
Answer: $8000
Explanation:
From the question, we are informed that Jerry and Julie are brother and sister and that Jerry sold stock to Julie for $5,000, its fair market value.
We are further told that the stock cost Jerry $10,000 five years ago and that Jerry also sold Carol (an unrelated party) stock for $2,000 that cost $10,000 three years ago.
Jerry's recognized loss before the $3,000 capital loss will be difference between $10,000 which was the cost and the 2000 which Jerry later sold it for. This gives:
= $10,000 - $2000
= $8000
Answer: The decision will directly impact many agencies, individuals, or community members.
Explanation: Because the leader has enough expertise to make a good decision.