In getting the GDP or Gross Domestic Product for year 1 and
year 2, you should multiply the price to the quantity of goods sold and add
them all up.
For GDP Year 1
Given:
Quarts of Ice Cream with a price of $6 and 4 quantity of
goods.
Bottle of Shampoo with a price of $5 and 2 quantity of
goods.
Jars of Peanut butter with a price of $3 and 4 quantity of
goods.
= (6 x 4) + (5 x 2) + (3 x 4)
= $46
For GDP Year 2, the same products with different price and
quantity.
= (6 x 6) + (5 x 3) + (3 x 3)
= $60
Answer:
The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), the whole system (these three banks) is capable of creating $___3,400,000____ in new loans.
Explanation:
a) Data and Calculations:
Required Reserve Ratio (RRR) = 25%
Checkable Deposits:
First National Bank $250,000
Second National Bank 100,000
Third National Bank 500,000
Total of Checkable Deposits = $850,000
Money Supply = Total Checkable Deposits/Required Reserve Ratio
= $850,000/25%
= $3,400,000
b) The computation of the total Money Supply is based on the stated assumption that "all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers)."
Callable Certificate of Deposit is a type of savings account that a financial institution can terminate.
Answer:
The salesperson was using question opening in this scenario.
Explanation:
