The existence of banks:____________.

Business

1 answer:

Veronika [31]3 years ago

4 0

Answer: E. makes the money supply equal to the amount of currency in circulation

Explanation: money supply is the total amount or value of money in circulation or existing in an economy while currency in circulation is the total amount or value of money released in an economy by the monetary institutions like the federal reserve and Centre banks minus the money removed from the economy.

So with banks, money supply and currency in circulation can be checked and made equal.

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Economic activity in developing countries is limited at least in part due to limited investment. Investment is limited mostly du

Tpy6a [65]

Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.

<h3 /><h3>What is Interest Rate?</h3>

Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.

If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.

However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.

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1 year ago

Which organization provides leadership for the federal reserve system? board of governors congress department of the treasury fe

Setler79 [48]

<span>It is the organization, the Board of Governors, a federal government agency, which provides to the Federal Reserve System its leadership. The Board of Governors is made up of seven members which have been U.S.President-appointed as well as confirmed by the United States Senate.</span>

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3 years ago

Which of the following is an example of the benchmarking function of the budgeting process? A budget demands integrated input fr

Archy [21]

Answer:

The benchmarking function of budgeting system involves the evaluation of performance of managers.

The correct answer is C

Explanation:

The integration of inputs from different business inputs and function is done at the planning stage of budgeting. It does not involve benchmarking.

Budgeting requires requires close cooperation between accountants and operational personnel. This is referred to as active participation in budgeting. It helps to overcome behavioural challenges of budgeting.

Budget figures are used to evaluate the performance of managers. This is a benchmarking function of budgeting because it involves the comparison of performance of managers with established criteria so as to determine their level of success.

The budget outlines a specific course of action for the coming year. This indicates that a budget is a financial plan that outlines future courses of action. This does not require benchmarking.

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3 years ago

I want to take a survey of students at my university to find out what proportion like the new bus service on campus. how many wi

laiz [17]

Answer:

N = 3,120 (Approx)

Explanation:

Given:

z- score for 99% confidence = 2.58

Proportion (P) = 75% = 75 / 100 = 0.75

E = 2% = 0.02

Q = 1 - P = 1 - 0.75 = 0.25