1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zzz [600]
3 years ago
10

Suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole

system of $25,000. Then the potential deposit creation for the whole system is equal to:
Business
1 answer:
scoundrel [369]3 years ago
8 0

Answer:

$0

Explanation:

Given that,

Deposits = $100,000

Required reserve ratio = 25 percent

Total bank reserves = $25,000

Required reserve ratio refers to the ratio of deposits that are kept with the federal reserve.

Required reserves:

= Deposits × Required reserve ratio

= $100,000 × 0.25

= $25,000

Excess reserves:

= Total reserves - Required reserves

= $25,000 - $25,000

= $0

So, there is no excess reserves in this economy.

Money multiplier:

= 1/Required reserve ratio

= 1/0.25

= 4

Therefore, the total money creation potential of this deposit is zero.

You might be interested in
Based on what you have learned in the lesson and the assignment, write two or three sentences describing how short-term and long
Cerrena [4.2K]

Short-term investment options include savings and checking accounts. They usually have low risk, but they also provide lower returns. They are more liquid investments, meaning that they can be sold or changed easily. Long-term investments can provide higher returns; however, they are often more risky, and they can have lower liquidity.

When you are likely to need cash soon, a short-term investment would be wise. When you have the time and resources to try for a higher return, a long-term investment would be a good choice.

6 0
3 years ago
Read 2 more answers
Brooke Company grants James Decorating additional time to pay its past-due account. James makes a written promise to pay Brooke
skad [1K]
He will be paying out a debt so the answer is D.
8 0
3 years ago
Read 2 more answers
List the four stages of ability development. Provide an example of a person developing a specific ability. What would each stage
Kay [80]
<span>Jean Piaget was a Swiss philosopher and psychologist who introduced a theory of cognitive development like Sigmund Freud Jean thought human development can be described in stages (of course leaving the sexuality part of Freud out). The stages are:
</span>Sensorimotor. Birth through ages 18-24 months (Explorer)

Preoperational. Toddler-hood (18-24 months) through early youth (age 7) 
(<span> children learn to think abstractly, understand symbolic concepts, and use language etc.)
</span>
Concrete operational. Ages 7 to 12 (Understanding complexities)

Formal operations: Pre-adulthood through adulthood (H<span>ypothetical, and theoretical reasoning)

Shoutout to @Ahmedisaal 

Have an amazing day!

</span>
8 0
3 years ago
When considering interaction between companies and customers online, _______ is the attention that social media attracts while _
KATRIN_1 [288]

Answer:

The correct answer is letter "B": awareness; engagement.

Explanation:

Awareness is referred to as the capture of attention that something provokes on individuals because of the type of stimuli the object provokes or because individuals relate it to personal experiences. Instead, engagement captures people's interest at the point of making them search for more information about the stimuli portrayed or follow it to the point of having a better knowledge of what the object is about.

Thus, <em>social media attracts awareness but engagement is only generated if the individuals are interested enough in what is being displayed.</em>

5 0
3 years ago
matthew has written his mission, vision, and value statements. he has completed his organizational assessment. what is his next
Dimas [21]

After completing the organizational assessment, Matthew's next step should be to formulate the functional strategies.

The action plans that a company develops in different areas to achieve its objectives and goals in the short and long term are called functional strategies.

It is the set of strategies of the areas:

  • Commercial
  • Financial
  • Marketing
  • Production
  • Human Resources
  • Distribution
  • Technology

As a company is an integrated system that works to achieve a common goal, which in general is to be profitable and competitive in the market, the functional strategies must be aligned with those at the corporate and organizational level.

Therefore, the formulation of functional strategies is essential for the integration and optimization of organizational resources in order to achieve a company's objectives and goals.

Learn more here:

brainly.com/question/4974396

4 0
2 years ago
Other questions:
  • Which of the following job tasks would be performed in information systems and computer science career? A. coordinating data tra
    7·2 answers
  • (Forecast accuracy across horizons) You are a consultant to MedTrax, a large pharmaceutical company, which released a new ulcer
    12·1 answer
  • The opportunity cost of producing capital is
    14·1 answer
  • For a survey, a company decided to call 7 out of every 5000 people. how many people should be called in a town of 78000 people?
    8·1 answer
  • Gloria Rose works at College of Austin and is paid $ 30 per hour for a​ 40-hour workweek and​ time-and-a-half for hours above 40
    7·1 answer
  • One effect of a minimum wage in the market for low-skilled labor is a a. surplus of low-skilled labor.
    15·1 answer
  • The marginal propensity to consume is:
    9·1 answer
  • What is a means exam ?
    11·1 answer
  • The only way to decrease your lifestyle budget is by completely eliminating an item.
    9·1 answer
  • Opportunity costs are classified as ____ costs in project analysis. multiple choice question. irrelevant sunk relevant intangibl
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!