<span>1. Suppose Oscar withdraws $100 from his checking account and deposits it into his savings account. This transaction causes M1 to A. Increase by $100 and M2 to remain the same. B. Decrease by $100 and M2 to remain the same. C. Decrease by $100 and M2 to increase by $100. D. Remain the same and M2 to increase by $100</span>B<span>2. Suppose Megan withdraws $75 from her savings account and deposits it into her checking account. This transaction causes M1 to A. Increase by $75 and M2 to remain the same. B. Decrease by $75 and M2 to remain the same. C. Increase by $75 and M2 to decrease by $75. D. Remain the same and M2 to increase by $75.</span>A<span>3. Suppose Jared takes $200 from his savings account and holds it as cash. The immediate result of this transaction is that M2 A. Increases by $200 and M1 remains the same. B. Decreases by $200 and M1 remains the same. C. And M1 do not change. D. Remains the same and M1 increases by $200.</span>D<span>4. A single bank with $10,000 of reserves and a reserve ratio of 25 percent could support total transactions account balances of at most A. $10,000. B. $5,000. C. $40,000. D. $25,000.</span>C<span>5. A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions account balances of at most A. $400,000. B. $1,000. C. $100,000. D. $20,000.</span>A<span>6. Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then initially, ceteris paribus, A. This bank can increase its loans by $5,000. B. This bank can increase its loans by $4,000. C. Total reserves will increase by $4,000. D. Required reserves will increase by $5,000.</span>B<span>7. Initially a bank has a required reserve ratio of 10 percent and no excess reserves. If $1,000 is deposited into the bank, then, ceteris paribus, A. This bank can increase its loans by $900. B. This bank can increase its loans by $1,000. C. Total reserves will increase by $900. D. Required reserves will increase by $1,000.</span>A<span>8. If total reserves for a bank are $12,000, excess reserves are $2,000, and demand deposits are $100,000, the money multiplier must be A. 20. B. 15. C. 10. D. 5</span>C<span>9. If the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required reserve ratio of 10 percent, the banking system can increase the volume of loans by a maximum of A. $5,000. B. $50,000. C. $85,000. D. $100,000.</span>A<span>10. Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system? A. $1 billion. B. $150 million. C. $15 billion. D. $6.67 billion.</span><span>B</span>
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. A price ceiling is non binding if it set above equilibrium price. So price above $3 is non binding. A non binding price ceiling has no effect on the market price.
Price ceiling is binding if it is set below equilibrium price.
Equilibrium price is where the demand and supply curve intersects.
If Alicia pay per year is $35,256 and there are twelve months in a year, then her monthly salary is $35,256/12 = 2,938. This means that Alicia earns $2, 938 each month. Conventionally, there are four weeks in a month, thus, Alicia earns $2,938/4 = 734.50. This means that, Alicia earns $734. 50 each week and this is the amount that Alicia is expected to spend on rent on a monthly basis.
Explanation: In a decentralized organisation, the seniors in the organisation transfers the authority and responsibility to their subordinates.
This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.
In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.
From the above we can conclude that the correct option is A.
