Answer:
The Central Bank is trying to increase money supply.
Explanation:
When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.
It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.
In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.
In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.
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Solution:
Pick some smart number for x,
let x=2 (I chose x=2 as in this case monthly shipments would be X/2=1).
From January to April, inclusive 4x=8 brooms were produced and
in May the company paid for storage of 8-1 =7 brooms,
in next month for storage of 6 and so on.
So the total storage cost would be:
= 1 ∗ (7+6+5+4+3+2+1+0)
= 28
--> as x=2 , then 28 = 14x
So the answer is 14x
Answer:
The situation is called insolvency. bank is unable to pay to depositor.
Explanation:
The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt. The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.
Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.
<span>A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by: 8 units.
To solve for the original sales amount: (6 units)($15) = $90
Next find the new unit amount: (8 units)($14) = $112
The difference between these two is a $22 sales increase which means to have the difference in sales be $22 there were 8 units sold instead of 6 units.
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