Answer:
If the reserve rate is raised to 30%, the banking system will be able to comply with it without having to make any more reserves, since their total reserves are currently $3 billion.
Explanation:
If the banking system currently has $10 billion in deposits:
- a reserve ration of 20% = $2 billion in reserves
- excess reserves = $1 billion
total reserves held by banks = $2 billion + $1 billion = $3 billion
Answer:
D) Sell - because differential income is $1,500 if Bulls sells rather than leases
Explanation:
Differential revenues and costs equal the difference in revenues or costs resulting from choosing one alternative course of action. This concept is very similar to opportunity costs analysis, since it compares what would happen if one decision is taken versus taking another alternative decision.
If Bull sells the machine, they will receive = $90,000 - 5% = $85,500
If Bulls lease the machine, they will receive = ($24,000 - $3,000) x 4 years = $84,000
Differential revenue = $85,500 - $84,000 = $1,500
The answer is the last choice above which is the principle
of distributive justice. It is because this principle should follow of having
to not harm others, especially the less or least fortunate in any forms or in
any means that will inflict harm to them.