Answer:
$3.68 million
Explanation:
Reserve Ratio = 8%
Reserves are currently = $25 million
Amount of deposits = $ 312.5 million
Deposit outflow = $4 million
Remaining Deposits = Amount of deposits - Deposit outflow
= $ 312.5 million - $4 million
= $308.5 million
Current Required Reserve after outflow of deposits(CR):
= $25 million - $4 million
= $21 million
Therefore,
Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)
= $21 - ($308.5 × 0.08)
= $21 - $24.68
= -($3.68)
Therefore, the reserve shortage created by a deposit outflow of $4 million is $3.68 million
In order for mutually beneficial trade to occur between two otherwise isolated nations, each nation must be able to produce at least one good relatively cheaper than the other.
<h3>What does comparative advantage mean?</h3>
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage. This is when trade can be mutually beneficial .
To learn more about comparative advantage, please check: brainly.com/question/25812820
To answer the question above as to which type of life insurance policy combines term insurance and investment elements is letter C, Universal Life. Universal Life or in other term Permanent life Insurance is a type of insurance to which is flexible low-cost protection and term life insurance as well as the saving elements like the whole life insurance.
Answer:
$10 million
Explanation:
Calculation for the reported profit for the first year of the contract
Using this formula
Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)
Let plug in the formula
Reported profit = ($30 million / $75 million)×($100 million – $75 million)
Reported profit=0.4 million ×25 million
Reported profit= $10 million
Therefore the reported profit for the first year of the contract will be $10 million
Answer:
a. Increased wealth due to lower prices and greater product diversity b. Ability to use productive resources found only in other countries.
Explanation:
A: Benefits of International trade for households, is an increase in wealth as a consequence of the drop in prices of goods that are imported (because these products are produced efficiently abroad), and a potential drop in prices of local goods because productive factors could potentially be more efficiently allocated increasing the productivitiy of such factors. Households also benefit because a higher diversity of products could expand their utility curve by richer consumption alternatives. B: Benefits of international trade for firms is an expansion of the disposable resources available to produce local goods, which could increase the productivity per productive factor by relatively lower prices of resources and higher quantities.
