Answer:
What is the Value of Bank Deposits?
bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000
What is the Money Supply?
money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000
Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?
if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250
total money supply = $2,000 - $250 = $1,750
Answer:Manufacturers produce or make products. They typically sell them to wholesalers or distributors that have expertise in getting products to retailers. Retailers then hold inventory and market the goods to consumers that purchase them for personal or family consumption.
Answer:
True
Explanation:
Disruptive innovation refers to a technological change which adversely hampers the existing operations of an industry or it's players. For instance, the advent of USBs and compact discs affected the industry of magnetic tapes and audio cassettes.
Another latest example of disruptive innovation being Netflix which has kind of disrupted the normal operations and profitability of television channels.
Such disruptive innovators do not require to focus on outdoing competitors performance. All they need to take care of is they perform good enough to appeal and retain their customers.
Answer:
Arthur’s recognized gain or (loss) = $0
Ned’s basis in the land = $105,000
Explanation:
As the adjusted basis for Arthur was $145,000 and he sold it for $105,000 hence, there is no gain. Ned basis is the fair market value at which he purchased the tract of land.
