Answer:
B) $5.860.53
Explanation:
The computation of the future value is shown below:
= Principal amount × (1 + rate of interest)^number of years
= $5,500 × (1 + 0.016)^4
= $5,500 × 1.016^4
= $5.860.53
Hence, the second option is correct
The answer is D as inflation usually consists of the rise of price in goods and services. The salary is not decreased, however it is worth less as everything rises in cost and his salary stays the same.
Hope that helps!
A
Explanation:
using the internet and the process of elimination, A is your answer
Answer:
hold only a fraction of deposits as reserves.
Explanation:
Money multiplier denotes the central bank's ability to create final deposits many times the initial deposits.
They do so because of their partial (fractional) reserve requirement, mandated by central bank, called as Legal Reserve Ratio = LRR
Money Multiplier = Final Deposits / Initial Deposits = 1 / Reserve Requirement
Eg : Initial Deposits = 100 , LRR = 10%
On getting 100 initial deposits, banks retain 10% ie 10 as reserve, lend out remaining 90. These 90 spent by borrower come back in the bank account of receiver. Out of 90, banks again retain 10% i.e 9 as reserves, lend 81 . Same process continues until :
Final Deposits = (1 / LRR) x Initial Deposits
Final deposits = (1 /0.1) i.e 10 times initial deposits
= 10,000
5. C. cost push
6. A. Demand
7. A. Law of Demand
8. A. The product isn't a Necessity
9. C. Demand
