Answer:
If banks hold excess reserves, then the money multiplier will be smaller.
Explanation:
It is easier to understand using an example:
required reserve rate = 5%
money multiplier = 1 / 5% = 20
if $100 are injected in to the economy and they are deposited in the banking system, the money supply will increase by $100 x 20 = $2,000. But this calculation only works if banks lend 100% of the loanable funds, but if instead banks only lend $90, instead of $95 ($100 x 95%), then the money multiplier will be 1 / 10% = 10. In this case, the money supply will only increase by half
I'd say B, by leasing the car he'd save more money if it broke down or stopped functioning properly and if that happened he could lease a different car instead of paying multiple times to fix things that would most likely break down again because he owned it.
Market failure occurs when a free market is unable to A) distribute resources efficiently.
That's the amount of charges owed to the credit card company.
Answer:
4.83 times
Explanation:
The computation of the inventory turnover is shown below:
= Cost of goods sold ÷ average inventory
where,
Average inventory = Raw material inventory + work in progress inventory + finished goods inventory
= $740 + $320 + $1,010
= $2,070
And, the cost of good sold is $10,000
Now put these values to the above formula
So, the answer would be equal to
= $10,000 ÷ $2,070
= 4.83 times
