Answer: B. 1/R, where R represents the reserve ratio for all banks in the economy.
Explanation:
The Money Multiplier is the money that Banks generate given a certain RESERVE REQUIREMENT/RATIO.
A Reserve Requirement is money that the Central Bank requires that Banks do not loan out and instead keep in reserve.
For example, if the reserve rate is 10% and a bank has $10 they can only loan out $9.
Assuming they loan out $9 then they created $19 in the economy because their customers still own the original $10 but now they have also given loans of $9. The people who take the loans then deposit it in another bank. That bank would keep $0.90 in reserve and loan out $8.10 meaning that $27.10 now exists in the economy.
The process goes on and on until it gets to $100.
A simpler way to get to the final figure is to divide 1 by the reserve requirement = 1/r which is the money multiplier.
Using the above example, that would be 1/0.1 which is 10.
Multiplying this 10 by the initial deposit of $10 will give you that same $100.
Credit limit refers to the maximum amount of credit a financial institution extends to a client through a line of credit as well as the maximum amount a credit card company allows a borrower to spend on a single card.
Hope this helps
Answer:
A written and signed document between an employer entity and a labor organization specifying the terms and conditions of employment for a specified period of time is known as a collective bargaining agreement.
Explanation:
The reason why it is collective bargaining agreement is because it binds two or more entities which makes it to be collectively agreed
Answer:
(d) 15 bouquets
Explanation:
it is given that kate alone can arrange 20 bouquets per day
and it is also given that when Kate and his husband William work together then they arrange 35 bouquets
we have to find the William marginal product
if both together arrange 35 bouquets and Kate alone arrange 20 bouquets it means that 35-20=15 bouquets are arranged by William alone
so the marginal product of William is 35-20=15 so the option will be the correct answer
Answer:
According to Amazon, the demographics report “shows Brand Owners the breakdown of their Amazon customers (in aggregate) by age, household income, education, gender, and marital status.
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