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Effectus [21]
4 years ago
14

If a commercial banking system has $200,000 in checkable deposits, actual reserves of $70,000, and a reserve ratio of 20 percent

, then the banking system can expand the supply of money by a maximum of $180,000.
A. True
B. False
Business
1 answer:
Solnce55 [7]4 years ago
4 0

Answer:

B. False

Explanation:

The banking system can expand the supply of money by a maximum of $1,000,000 ($200,000/0.2).

The maximum currency creation by the banking system is a function of the checkable deposits and the reserve ratio.  The formula for this is called the money multiplier, and is given as the checkable deposits divided by the reserve ratio.  With this multiplier factor, banks can increase the currency in circulation.  This is why central banks use the reserve ratio to monitor the supply of money in their economies.

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Serhud [2]

Answer:

the decrease in price increase the demand.

Explanation:

Steve is a consumer of goods, his demand will increase if the price drops. In this case, the hamburgers price decrease so it demand increases too.

This makes his consumer surplus increase as well, as he was willing to pay up to $2 per hamburger, receiving 2 at 1 dollar genrate an additional consumer surplus for $2 dollars

6 0
4 years ago
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B. Be called in for an interview because that's the first thing they see and it gives the general details
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4 years ago
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If rice is an inferior good: a. the income elasticity of demand for rice will be positive. b. an increase in income will cause t
tatuchka [14]

Answer: The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.

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3 0
4 years ago
What is the definition of business
tester [92]

Answer:

See below

Explanation:

Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.

Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.

7 0
3 years ago
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and
evablogger [386]

Answer: <em>True</em>

Explanation:

<em>Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.</em>

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3 years ago
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