The required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8
If the required reserve is 10%, the currency reserve multiplier is 10 and the currency supply should be 10 times the reserve. A reserve requirement ratio of 10% also means that banks can lend out 90% of their deposits.
The reserve ratio can be calculated by simply dividing the amount a bank must hold in reserves by the amount the bank has on deposit. For example, if he has $10 million in bank deposits and needs to hold $500,000 in reserves, the required reserve ratio is 1/20, or 5%.
The ratio of required reserves to deposits. A reserve ratio of 10% means that banks must hold 10% of their deposits as a reserve.
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Answer:
Buy Camera 2.
Explanation:
PACED, decision making process is used to make decisions when alternative options are available. In the given case Melissa has two option either to buy camera 1 or camera 2.
The steps for PACED decision making process are :
1. Define the Problem
2. List Alternatives
3. Identify Criteria
4. Evaluate Alternatives
5. Make a Decision
1. To buy Camera 1 or Camera 2
2. Camera 1 or Camera 2
3. Which ever camera has more features will be selected
4. Camera 2 has better features than camera 1
5. Buy Camera 2.
Thank you for the 5 points
Comparative advantage<span> refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.Hope you like:)</span><span>
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Answer:
Sarah has invested in sole proprietorship while Jane has invested in corporations
Explanation:
Sole proprietorship is owned and run by a single owner who is legally obligated for all business assets and liabilities. Since Sarah has invested thousands of dollars in one company, it looks like she has invested in sole proprietorship in which she is the owner.
Corporation is run by group of people who are not legally obligated for the assets and liabilities of the corporation. People can invest in more than one corporation as they are open for public offer. These investors earn dividends based on the earnings earned by the corporations So, possibly Jane has invested hundreds of dollars in different large companies.
