Answer:
The people in an economy have $25 million in money. There is only one bank where they deposit their money and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?
D. 10
Explanation:
10% of $25, 000, 000= $2,500,000
Money multiplier in this economy is by 10
Answer:
The correct answer is (B)
Explanation:
Economists are helpful to predict future economic and financial phenomenon’s. In that regard, statistical or mathematical models are considered more appropriate and it is said that they provide better results. In the above scenario, Syd is attempting to construct an economic model for that, the suitable technique to examine the cause and effect to predict the outcomes are mathematical functions. The reason is that mathematical models are more appropriate to predicts cause and effect.
Answer:
The correct answer would be $5
Explanation:
The formula to use is "Expected return to player" which is
E(x) = x.p(x)
where x is the return to player if they win
and p(x) is the probability of winning.
So here,
x = $100 (return to player for winning)
p(x) = 1/50 (probability of winning)
Therefore expected return to player is
E(x) = x.p(x)
= $100 x 1/50
= $100/50
= $2
Cost: $7
Expected return to player is $2.
Therefore Loss (to player) is Cost minus Expected return
= $7 - $2 = $5 <---- expected value for the carnival to gain,
The loss to the player is the carnival's gain. It's $5.
Answer: B - beyond the control of either party to the escrow
Explanation: An Escrow account is a legal term used where funds are held in trust whilst two or more parties complete a transaction.
An Escrow is a trusted third party that will be in custody of the funds during the cause of the transaction and will be the one to pay the merchant after all the escrow agreement are fulfilled.
Escrow account reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied. It apply mainly to real estate transactions.
