Answer:
A. $750
B. $675
C. $7,500
D. 1. Leakage of cash
2. Preference for liquid cash.
Explanation:
A. M1 is a measure of money in the narrow sense. It includes the cash currency in M0 and the deposits in checking accounts (sight deposits), which are perfectly liquid, suitable for immediate everyday payments. With Meagan's deposit of $750 into her checking account, the immediate effect will be an increase in M1 by $750.
B. The amount of money local bank can lend given a reserve requirement if 10% and no excess reserve kept by the bank is 90% of $750.
Reserve requirement = 10% of 750 = $75
Balance = 750 - 75 = 675
So $675 is the amount local bank can lend.
C. Creation of money refers to the multiplication of loans and advances. Recall that in B above, we calculated the amount of money local bank can lend given a reserve requirement of 10% and deposit of 750$ to be $675. This $675 is lent to another individual who deposits same into a checking account. With a reserve requirement of 10%, an amount of $607.5 has been created which can be lent out. This process continues until the final deposit becomes too small to create fresh loan. So we derive a formula for finding the amount of money the entire banking system can create.
nM = iD/r
Where:
nM is the amount of money created
iD is the initial deposit = $750
r is the legal reserve ratio = 10%
nM = 750/10% = 7500
The amount of money the entire banking system can create is equal to $7500.
D. In reality, the power of commercial banks to create credit is subject to the some limitations, making it difficult for banks to create money up to $7500. Two of the reasons are : cash leakage and preference for liquid cash. The money creation multiplier used in the calculation above is based on the assumption that the entire loan is deposited into the banks. Due to either cash leakage or preference for liquid cash, the amount deposited into the banking system will ultimately reduce. This will weaken the multiplier and consequently reduce the amount of money created by the entire banking system.
Answer:
A) rate buster
Explanation:
Rate buster
Rate buster is the person employed by a company or organization , who is very productive and exceeds the formal agreed rate of the output of a task .
The person is of great advantage to the management .
These persons are not liked by the other colleagues , since they some how increase the work load or the target for other , by excelling on the task given to them .
Hence , Winston is a rate buster .
Answer:
$600,000
Explanation:
Based on the information given in a situation where the amount of $600,000 was a better estimate than any other amount given in the range by the legal counsel ( Dean) which means that the amount of LIABILITY that Dean should report on its balance sheet at December 31, year 1 in connection with this suit will be the estimated amount of $600,000.
So you need to find two salaries for this problem
Owner and part time worker
For the owner your formula would be $850 * the number of weeks in the month
For the part time workers it would be $14 * the number of hours worked * number of weeks in the month
Then you would add these two totals.
You would need to set up formulas to calculate these.