Answer:
The answer is: due to risk aversion
Explanation:
Imagine all the money you had were those $20,000. You can choose to deposit them on a bank an earn $600 a year or lend them to someone else and get $1,600 a year.
I believe very few people would assume the risk of lending the money directly to a third party. Maybe if you know that person (e.g. maybe your brother) and really trust him or her, you could do that, but generally speaking, this rarely happens.
Every bank has a percentage of the loans they give out that are never paid back. Besides the costs incurred in running a business, banks also have to consider bad credits which will make them lose money. One of the duties of the bank is to reduce that risk and the number of possible bad credits, but they will never be zero. Imagine now that you lend your $20,000 to a bad creditor, you might lose all your money.
At the end it all depends on how much risk you are willing to take.
One of the example of the commodities in which the sellers have little choice in setting selling price is books
In selling a books, all the price is usually arranged by the publisher and manufacturer and the seller could not really set the selling prices unless they have enough resource to self-publish
Answer:
b.$70,000
Explanation:
The net income could be computed by two method
First method is
Net income = Revenue - expenses
= $100,000 - $30,000
= $70,000
And, the second method is
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$95,000 = $32,000 + net income - $7,000
So, the net income is $70,000
Answer:
The Federal Reserve is the central bank of the United States. It is the bank for other banks and the banker to the government.
It functions include:
a) Acts as a banker's bank to clear checks, provides deposit services for banks, and facilitates smooth payment and settlement system.
b) As the banker's bank, it supervises and regulates member banks in order to protect consumers and maintain a healthy economy. It also protects banks by ensuring they adhere to regulations and best practices.
c) It uses open market operations to target the supply of money in the economy by ensuring that the monetary policy of the government is carried out, especially with respect to inflation and deflation. It uses interest rates and reserve rates to achieve this control.
d) It is the government's bank, offering banking services to the government, as other banks offer to corporations, institutions, and individuals.
Explanation:
It is not the function of the Federal Reserve to change tax rates to stabilize business cycles. This is the government's prerogative, acting with Congress. What the Federal Reserve changes is the interest and reserve rates.
The Federal Reserve does not have powers to increase government expenditures on infrastructure. It does not provide banking services to larger corporations directly. Instead, it provides banking services to the governments.
<span>In the first stage of the marketing research approach, "defining the problem", the research objective is set.
</span>
The Marketing research process refers to an arrangement of five stages which characterizes the errands to be expert in directing an advertising research study. These incorporate issue definition, building up a way to deal with issue, look into plan detailing, field work, information planning and investigation, and generating report and introduction.
