Answer:
E. Suppose a firm's total assets turnover ratio falls from 10% to 9%, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. Under these conditions, the ROE will increase.
Answer:
E : Task complexity and requirement of different perspectives must be used as criteria when assigning work to teams over individuals and vice versa
Explanation:
Answer:
If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___.
$3,200.
Explanation:
a) Data and Calculations:
Excess reserves = $800
Reserve requirement = 20%
Therefore, M1 money supply = $800/20% = $4,000
The increase in the M1 money supply will be $3,200 ($4,000 - $800)
b) The amount of funds that a bank is required by the central bank to hold in reserve to meet liabilities in case of sudden withdrawals by depositors is called the reserve requirement. It is usually stated as a percentage by the Fed Reserve. The Fed uses reserve requirement as a tool to increase or decrease money supply in the economy and influence interest rates. What the Fed does with the reserve requirement, therefore, depends on the monetary policy that it chooses to respond to the money market.
A savings account would be properly classified as cash which is an interest bearing bond account held at a bank or alternative monetary organization that offers an uncertain interest rate. The banks or monetary organizations may have assured the number of withdrawals can create from savings account each month and burden fees if uphold a certain average monthly balance in the account.
Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.