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ludmilkaskok [199]
3 years ago
8

Maria makes a deposit of $10,000 into her Smalltown Bank savings account. Smalltown Bank holds 20% of her deposit, then lends th

e remaining $8,000 to Ben to buy a new car. This practice of retaining only a portion of deposits on hand is called ________.
a. the gold standardb. fractional reserve bankingc. the Federal Reserve systemd. representative money
Business
1 answer:
zloy xaker [14]3 years ago
3 0

Answer: Fractional reserve banking

Explanation:

Fractional-reserve banking is a common form of banking that is practised by commercial banks worldwide. It involves banks in every part of the world. Fractional reserve banking is the acceptance of deposits from customers and then making loans to borrowers, while the reserve a fraction of the deposit liabilities of the bank is held.

From the question, Maria makes a deposit of $10,000 into the savings account she uses at Smalltown Bank and the bank holds 20% of the deposit she made and later lends the remaining $8,000 to another customer is an example of fractional reserve banking.

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Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it dec
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Answer:

B. Strategic alliance

Explanation:

Strategic alliance is the agreement between two or more players (companies) to share resources or knowledge in such a way that it benefits all parties involved.

It is an agreement for cooperation among two or more independent firms to work together to achieve a common goal which is usually profit making. The example asked in the question is a form of strategic outsourcing relationship where the Soccer to the masses shared their products with the Japanese company in exchange for the Japanese company offering manufacturing and wilder distribution of the products.

All parties involved hopes for a synergy where everyone benefits more from the alliance rather than if they stood alone.

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4 years ago
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Bob, the owner of Orthopedic Supply, just discovered that his trusted friend Ruth, his accountant for over 30 years, has been mi
Alex777 [14]

Answer:

E) an ethical dilemma.

Explanation:

An ethical dilemma is a situation where a person must face a decision where both alternatives are really bad choices. No option will provide a positive resolution to the current situation, but the person must decide between one of them.

In this case, if Bob goes to the police, his friend will be arrested but that will generate bad publicity for his business. If Bob decides not to go to the police, Ruth will continue to steal money form him. It's like being between a rock and a hard place, whatever your decision, you are still going to be hurt.

4 0
3 years ago
More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg's Cracklin' Oat Bran says it tastes like oatmeal co
Paladinen [302]

Answer:

B. Market Development

Explanation:

Market development is a growth strategy that <em><u>identifies and develops new market segments for a product</u></em>.

In this question, yes the cereal is mostly consumed at breakfast, but the Kellogg's Oat Bran is developing the market by portraying the Oat Bran as a snack rather the breakfast.

Targeting and developing the new customers to be the consumer of the product is at the heart of the strategy.

In a way, it's about literally developing the market for your product is not currently your consumer yet.

4 0
3 years ago
Some people argue that cover letters are the most important job search document you create. Do you agree or disagree with this s
sweet-ann [11.9K]

Answer:

I dont agree

Explanation:

Cover letters are a good first contact with candidates for a position. They draw attention to the Curriculum Vitae if the Cover Letter is strong enough. Personally, I think that the Curriculum Vitae itself is the most important document that a candidate can create as it specifies all the experience gained through the work life. Additionally, when you are applying to a Job the Cover Letters are optional but the curriculum vitae is always mandatory.

5 0
4 years ago
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You are considering purchasing a stock that currently sells for $48. The expected price of the stock in a year is $46, and durin
o-na [289]

Answer:

Holding Period return is 6.25%

Explanation:

The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

According to given data

Initial Price of stock = $48

Expected Value in coming year = $46

Expected Dividend =  $5

Formula for Holding Period Return

HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ Expected Dividend + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ $5 +  ( $46 - $48 ) ] / $48

HPR = [ $5 - $2 ] / $48

HPR = $3 / $48

HPR = 0.0625 = 6.25%

5 0
3 years ago
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