If the central bank increases the amount of reserves banks are required to hold to 20%, then: both the money multiplier and supply of money in the economy will decrease.
<h3>What are the Functions of central bank?</h3>
The central bank oversees and manages the nation's foreign exchange while also serving as the technical advisor to the government on matters related to foreign currency policy. The central bank's role is to prevent volatility in foreign exchange rates and to promote stability. Implementing monetary policy and managing the money supply are the responsibilities of central banks, which are frequently tasked with preserving low inflation and steady GDP growth. To manage the cost of borrowing and lending across an economy, central banks have an impact on interest rates and take part in open market activities.
An organisation that controls a state's or formal monetary union's commercial banking system and regulates its currency and monetary policy is known as a central bank, reserve bank, or monetary authority. A central bank has the exclusive right to expand the monetary base, unlike a commercial bank.
Hence, If the central bank increases the amount of reserves banks are required to hold to 20%, then: both the money multiplier and supply of money in the economy will decrease.
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Answer:
A net worth statement
Explanation:
A net worth statement is a financial report/ document that shows the assets and liabilities - both short and long-term - of an individual or company. The net worth is the result of deducting liabilities from assets.
The net worth statement paints a picture of a person or an entity's current financial position. Assets represent what a person owns, while liabilities are what they owe.
Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.
Explanation:
0 1 2 3 4
Net Cashflows -370,000 160000 140000 80000 80000
Discount factor 12% 1 0.893 0.797 0.712 0.636
PV of cashflows -370000 142857 111607 56942 50841
NPV -7752
Affiliated directors in a company are D. agents of top management.
<h3>Who are affilaited directors??</h3>
These are directors that sit on the board who are not independent because they have links to the shareholders who put them there.
These shareholders are usually the top management of the company which means that affiliated directors work to help them.
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