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IRINA_888 [86]
3 years ago
11

The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. Th

e bank does NOT want to hold excess reserves. What is the maximum possible expansion in the money supply as a result of this initial deposit?
Business
1 answer:
Eddi Din [679]3 years ago
5 0

Answer:

Maximum expansion in money supply    = $5,000

Explanation:

The fractional banking system requires banks to keep a percentage of their total deposit as reserve and lend the rest as loans and advances

The total maximum amount that can be created by the bank is equal TO the amount of deposit multiplied by the creation multiplier.

The multiplier = 1/reserve ratio

Maximum amount = 1,000 × 1/0.2

                           = $5,000

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An automatic stay against creditors. Once you file, the court automatically issues this stay against any and all debt collection activity.

Dischargeable debts.

Bankruptcy exemptions might allow you to maintain ownership of your property after bankruptcy.

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8 0
3 years ago
Economies of scope are characterized by A. low capital intensity and low resource flexibility. B. high capital intensity and low
nasty-shy [4]

Answer:

C. high capital intensity and high resource flexibility

Explanation:

Economies of scope describe situations in which the long-run average and marginal cost of a company, organization, or economy decreases, due to the production of some complementary goods and services. An economy of scope means that the production of one good reduces the cost of producing another related good.

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4 years ago
Consumers who take vitamin/mineral supplements should be aware that excessive intakes could pose hazards, and should refer to th
BaLLatris [955]

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estimated average requirement

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Many people (if not almost everyone) believes that vitamins and minerals are good, and more of them are even better. But anything in excess, including good things can be bad for you. E.g. if you do not consume enough iron you might develop anemia, but excess iron can poison you.

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4 0
4 years ago
Bill just financed a used car through his credit union. His loan requires payments of $275 a month for five years. Assuming that
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A. amortized

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3 0
3 years ago
How will the increase in government spending financed by borrowing affect national savings?.
Whitepunk [10]

Increament in government spending which is financed by borrowing will most likely affect national savings.

This is because borrowing money means you are spending from your future income.

The negative effect of spending borrowed money will most likely be felt when the money is not used for money yielding ventures.

This means that when borrowed money is not used to boost the economy of a country, it will most likely lead to the depletion of the national savings or reserve.

<h3>Viable areas to utilizing borrowed money</h3>

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Learn more about National Savings at brainly.com/question/15109837

8 0
3 years ago
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