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The money supply will be $100,000
Banks need to have a $ 10,000 reserve, so if you buy $350,500 with 4,444 bonds, you'll need to reduce your lending by $10,000 to make up for the difference.
A decrease in credit means a decrease in deposits at other banks. In other words, the excess reserve was initially zero, but after the bond is sold it will be minus $10,000,
. The money supply will be reduced by $10,000 x 1 / 0.1 = $100,000 .
Banking is a business that protects money for others. Banks lend this money and generate interest that benefits the bank and its customers. A bank is a financial institution that is allowed to accept deposits and make loans. However, we can also provide other financial services.
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Answer:
Direct marketing
Explanation:
In simple words, Direct marketing relates to the means of selling an deal, where companies specifically interact with a pre-selected client and provide a mechanism for veiled reference. It has also been recognized as direct reaction marketing amongst practitioners.
The least likely to be successful is indeed a direct marketing message that is sent to the largest possible public. After all, while simply irritating several other beneficiaries, the business can gain few more consumers.
The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:
The price elasticity of demand for film
Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
