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Anna71 [15]
3 years ago
15

The main function of – banks is to accept deposits and then to lend the same money (minus –) back out. Banks make a profit by ch

arging a higher interest rate on – than the interest rate they pay on –. Through the loan process, banks are actually able to – money.
Business
1 answer:
Lynna [10]3 years ago
3 0

Answer:

The main function of COMMERCIAL banks is to accept deposits and then to lend the same money (minus REQUIRED RESERVES) back out. Banks make a profit by charging a higher interest rate on LOANS than the interest rate they pay on DEPOSITS. Through the loan process, banks are actually able to CREATE/MULTIPLY money.

Explanation:

Commercial banks are financial institutions that engages in accepting deposits from the general population and giving back loans for investment in the sole aim of making profits.

Required reserves is the amount of money a bank must hold in order to meet liabilities when there are sudden withdrawals.

Loans are money borrowed out by a financial institution in exchange for the repayment of the loan plus interest.

Deposits are the total amount of money paid into the bank.

Money creation refers to the increase in amount of money supplied from initial deposit.

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Suppose a state passes a minimum wage law that increases the minimum wage from $5/hour to $20/hour. The equilibrium wage prior t
melisa1 [442]

Answer: Some employers and workers will agree on a wage less than $20 and not report the wages to the government; black market

Explanation: When the minimum wage is set above the equilibrium wage it leads to a surplus of labor in the market. There are more job seekers than the firms demand at the minimum wage of $20. Thus, the only possible option will be that some employers and workers will agree on a wage less than $20 and not report the wages to the government. When this happens it leads to black marketing. Black market is an underground economy the transactions of which are not reported to the government.

6 0
3 years ago
What is the Total Cost of a stock purchase if the stock price is $54, shares purchased 150, with a $5 Commission Fee? (See probl
ankoles [38]

Answer:

a $8,105

Explanation:

To find the answer you have to use the ormula to calculate the total cost of a stock purchase:

Total cost=(Price per stock*Number of stocks)+Commission

Total cost=($54*150)+$5

Total cost=$8,105

According to this, the answer is that the total cost of a stock purchase is $8,105.

3 0
3 years ago
agricultural workers and industrial laborers were almost the same number a) during 1850 b) during 1880 c) during 1890 d) during
Leni [432]

Answer:

I'm not 100% but I strongly believe it is A. as after the Civil War post 1860's the Industrial Revolution took over the nation and a majority of laborers/workers were doing Industrial work.

Explanation:

7 0
3 years ago
Suppose that the economy enters into a recession and that, as a result, Rusty Z. Wrench loses his job as a delivery truck mechan
tangare [24]

Answer:

C. Cyclically unemployed

Explanation:

Cyclically unemployed is when workers lose their jobs because of downturns in the business cycle

8 0
3 years ago
As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negat
Juliette [100K]

Answer:

ROI = net profit / total investment

1. What is the current return on investment (ROI) being realized by your division

  • ROI = $625,000 / $4,150,000 =  15.06%

2. What would happen to the near-term ROI of your division after adding the effect of the new investment?

  • ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) =  14.36%

If you carry out the new project the ROI of your division will decrease.

3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?

  • Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.
6 0
3 years ago
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