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Kamila [148]
3 years ago
6

Suppose a banking system has $120 million in deposits, a required reserve ratio of 20 percent, and total bank reserves for the w

hole system of $100 million. Then the potential deposit creation for the whole system is equal to:
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
6 0

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.

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DochEvi [55]

Answer:

Most American cars are delivered f.o.b. Detroit; however, imports are not.

Explanation:

The completely correct sentence is;

Most American cars are delivered f.o.b. Detroit; however, imports are not.

Fob is an acronym for free on board, hence it should have "dots" in between.

Semicolon indicates a pause or that an explanation continues, as it joins two (2) independent clauses.

8 0
3 years ago
HELPPP ASAP ECON ?!!!!!!
sveta [45]

Answer:

C

Explanation:

7 0
2 years ago
Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in im
skelet666 [1.2K]

Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in improved relationships with suppliers, customers and employees.

<h3>What are cultural implications?</h3>

The impacts of a policy, event, activity or movement on a particular culture are referred to as cultural implications.

External and internal events can weaken, change, or reinforce specific parts of a culture, affecting the success of cultural globalization.

In the long term, developing a cultural knowledge can considerably improve workplace interactions, resulting in improved connections with suppliers, customers, and employees.

Therefore, option D is correct.

To learn more about the cultural implications, refer to:

brainly.com/question/15373432

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3 0
2 years ago
Which investment option has the highest risk ?
Flauer [41]
Buying is the highest risk investment because the outcome is unknown and you have to take a gamble.
8 0
1 year ago
Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates th
Reil [10]

Answer: 13.2%

Explanation:

Given data:

No of stores in the market = 5000

No. of store owners = 2000.

Allison charges = $8/month

Sam charges = $8/month.

Solution:

The market penetration rate would be calculated based on potential customers.

Using our general formula,

Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population

Where,

Total potential population=1,500

•Allison derived sales = 129 customers

•Sam derived sales = 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers

Let’s input this into our general formula.

Market penetration

= 169 customers/1,500

= 0.132*100

= 13.2%

The market penetration rate based on potential customers is 13.2%

8 0
2 years ago
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