Banks create cash by using lending extra reserves to buyers and businesses. This, in turn, finally provides greater to money in circulation as dollars are deposited and loaned again.
The Fed does not really print money. This is treated through the Treasury Department's Bureau of Engraving and Printing.
<h3>How is money created in the economy?</h3>
Most of the money in our economy is created by using banks, in the form of financial institution deposits – the numbers that show up in your account. Banks create new money each time they make loans. 97% of the money in the financial system today exists as financial institution deposits, at the same time as simply 3% is physical cash.
<h3>How do commercial banks create money?</h3>
Commercial banks make cash through imparting and earning activity from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.
Learn more about creating money here:
<h3>
brainly.com/question/3625390</h3><h3 /><h3>#SPJ4</h3>
Well managers learn more efficient ways than most others which helps them alot such as having people on task, making sure no one is lacking on working times or any thing is messed up. managers are the ones who keep tracks on tasks that not alot of others can.
Answer:
The answer is Vista Estates
Explanation:
Before any sale can done done, notice must be given to Vista Estates. The property can now be sold after been giving proper notice.
Vista Estates still has the legal right of original ownership even though a lien has been placed on his property. A lien is a legal claim against a property.
Answer:
A)The "like me" bias
B)Ethnocentrism
C)prejudice
D)Ethnocentrism
E)Perceived threat of loss
F)Stereotype
Explanation:
.
Answer:
The new cost of capital if this firm changes capital structure is 1.3
Explanation:
From the provided information:
All equity beta = 1
New D/E ratio = 0.5
Then, the new capital structure with levered beta is given by:
new capital structure = All equity beta *(1 + D/E*(1 - tax rate))
= 1*(1 + 0.5*(1 - 40%))
= 1.3
Therefore, The new cost of capital if this firm changes capital structure is 1.3
