Answer:
The answer is letter A.
Explanation:
Automatically gives preferential treatment in the allocation of funds to its riskiest division
Answer:
The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.
Explanation:
Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.
Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.
Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.
<u>Answer:</u>$0
<u>Explanation:</u>
Hansel and Gretel receive $600 as house rent allowance and they pay the same $600 towards the rent for their stay in the manager's apartment. If they live in a different building they would only pay $500 then they could save $100 which is the opportunity cost lost by them.
They do not have a gross income as the income and allowance are equal there is no gross income. They cannot even move on to other building as per the job agreement they have to stay at the manager's house which makes it impossible for them to earn gross income when in this job agreement.
A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.
<h3>What is reserve ratio?</h3>
The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.
Some key points related to reserve ratio are-
- The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
- Regulation D of the Federal Reserve Board establishes the reserve ratio.
- Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
- Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).
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<span>Capital appreciation refers to A. the increased value of a stock.
However, it doesn't only refer to the stock value, but value of any asset that is increased, such as bonds, land, etc.
The term is related to an influx of money that is going to bring many benefits to the person who is the owner of such assets.</span>
