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ella [17]
3 years ago
14

The simple deposit multiplier equals A. the ratio of the amount of deposits created by banks to the amount of new reserves. B. t

he​ inverse, or​ reciprocal, of the required reserve ratio. C. the formula used to calculate the total increase in checking account deposits from an increase in bank reserves. D. All of the above.
Business
1 answer:
ioda3 years ago
4 0

Answer:

All of the above

Explanation:

A simple deposit multiplier is the quantity of cash kept in reserve by a bank. It is said to be percentage of the amount in deposit at the bank. If the bank has a deposit multiplier of 20%, it then means that the bank must be able to keep $100 in reserve for every $500 they have in their deposits. Then investors can access the remaining $400 available as bank loans.

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In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t
Degger [83]

Answer:

Fisher effect

Explanation:

Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.

This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.

So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.

5 0
3 years ago
.Can competitors imitate FedEx’s approach in international markets and take market share away from the company? Why or why not?
Zinaida [17]

Answer: why, to ward off threat from their competitors. Why not, they should avoid unholy competition fair practices and exhibit only those practices that are capable of sustaining perfect competition.

Explanation:

Courier service : This is a service provided by a private postal organizations that specializes in fast, quick delivery of mail's, parcels for people,. FedEx is an American multinational company that specializes in the provisions of these services both local and around the world. Their services ranges from the provisions of quick delivery of mail's and parcels to their destinations promptly, ensure that their customers goods or parcels are delivered safely to their destinations that is their is no loss of goods in transit, they also provides extended hours of services to their customers. In addition, they also insure the goods or parcels with the insurance company in order to provide an insurance cover for the goods or parcels in case of loss.

The competitors are the firms operating within the same industry and providing similar or substitute product or services. The aim of every competitors in the market is to gain the largest share of the market. The competitors want to become the market leader. The question now is why or why not, to answer the question of why, the competitors should imitate the approach of their competitors in order to learn about the operations of their competitors with a view to ward off whatever threat that may come from them.they can do these by looking at the competitors product packaging, pricing policies, Discount structures, promotional and distribution strategies. All these need to be well understood. The knowledge of these would help the organization to understand and respond positively to pressures from their competitors. For instance, if their competitors has been making use of advertising, the firm should consider other alternatives such as promotion or publicity.

To answer the question of why not, a firm should not imitate the approach of FedEx in the international market and take market share away from the company, because a firm should avoid a reckless and damaging competition rather they should see one another as partners in progress. They should avoid an unholy competition fair practices, they should always exhibit only those practices that are capable of sustaining perfect competition.

3 0
3 years ago
You can estimate the value of a company’s stock using models such as the corporate valuation model and the dividend discount mod
sleet_krkn [62]

Answer: Using the discounted dividend model to estimate the value of the company’s stock, I will choose to evaluate a company that is not expected to distribute any earnings to its stockholders for the next few years.

3 0
4 years ago
At the beginning of 2022, KPD Inc has depreciable assets with a financial accounting book value of $100 million and a tax basis
jasenka [17]

Answer:

KPD’s tax expense for 2022 is $9 million.

Explanation:

                                                                                                       $ in Millions

Taxable Income                                                (10/25%)              40

Add: Tax basis depreciation                                 (80-74)                6

Accounting Income before Deprecation                                46

Less: Accounting Deprecation                         (100-90)               10

Accounting Income                                                                36

Tax expense                                                          (36x25%)         9

5 0
3 years ago
What happens on the money balances market (the demand and supply for money) when the Federal Reserve conducts an open market pur
Papessa [141]

Answer:

Increased Money supply and decreased rates

Explanation:

When the Federal reserve buys the bonds on the Open market operations, the cash is disbursed by the Fed to the seller of bonds which in case increases the money that is supplied in the market and hence the quantity of money held by general public. The interest rate will ultimately decrease as the money supply is more and people tend to spend more than save.

Hope this clear things up.

Goodluck.

8 0
4 years ago
Read 2 more answers
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