Answer: $25 billion
Explanation:
The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:
= Deposit into banking system * Money multiplier
Money multiplier = 1 / Required reserve ratio
= 1 / 20%
= 5
Checkable deposit increase:
= 5 billion * 5
= $25 billion
Answer:
Option (B) is correct.
Option (D) is correct.
Explanation:
If banks kept 100 percent of deposits on hand as reserves, then this will indicate that all the deposited amount would be saved as reserves. Therefore, the reserve requirement ratio is 100% here which means that:
Reserve ratio = 100%
= 100 ÷ 100
= 1
and the money multiplier = 1 ÷ reserve requirement ratio
= 1 ÷ 1
= 1
Banks would not be able create new money by giving loans because the reserve requirement ratio is 100%.
Answer:
B) The sole criterion for Joanna's promotion was her effectiveness in meeting individual targets.
Explanation:
Joanna wants to guide her sbordinates in executing various projects but they are not proactively coming to her for advise. This indicates that before her promotion she was very good at doing work individually and most likely did not work collectively to achieve results.
Based on this background tlshe was promoted on the basis of her individual efforts and her staff are not comfortable coming to her for guidance, since this was not her style before promotion.
Her approachable nature in building a team would not have been a criteria, if not it would have resulted in greater request for guidance from subordinates.
Answer:
The answer is: True
Explanation:
The profit margin of a business can be calculated using the following formula:
- gross profit margin = (gross profit / net sales ) x 100
- net profit margin = (net income / net sales) x 100
The difference between them is that the gross profit margin only considers the difference between net sales and COGS, while the net profit margin includes other expenses.
