The quantity of the $1,000 deposit is the bank required to keep in reserves is 20%.
<h3>What is a reserve deposit?</h3>
A reservable deposit would be any bank deposit subject to bank reserves established by the Federal Reserve Bank of the United States.
Some key features of reserve deposit are-
- Through the mechanism of fractional reserve banking, such a deposit could be used in part as a loan.
- The remaining portion, as established by the Fed's bank reserves, must be kept by bank & made available for prompt withdrawal upon request.
- A reservable bank is a banks deposit that is subject to the reserve requirement guidelines of the Federal Reserve.
- Transaction (checking) savings account, savings accounts, as well as non-personal time deposits are all examples of reservable deposits.
- Sweep accounts, often known as money market funds, is non-reservable deposit account that generate a greater rate of interest than reservable deposit accounts.
To know more about the reservable deposit, here
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Answer: Yes, the budget deficit will have on the current rate of inflation.
Explanation:
If the budget deficits have inflated the monetary policy, therefore, the monetary policy will affect the short run of aggregate supply curve. In this scenario, large budget deficits will shift the curve upward due to the increase in expected inflation, which will surely make the current inflation rate to be higher.
Answer:
Rational decision-making model
Explanation:
Rational decision-making model: It is one of the decision-making models which assume we have sufficient knowledge, information, resources, time and ability to evaluate and make a correct choice among different alternative we have.
There are six steps to Rational decision-making model:
- Define the problem.
- Identify the decision criteria.
- Weight established criteria.
- Using relative comparision.
- Generate list of alternative.
- Evaluate the alternatives.
- Determine the optimum decision.
Answer: the benefits are many but mainly if a company has a comprehensive crisis response plan then it is prepared to deal with unforseeable problems that will always appear in a company life.
One great example of a comprehensive crisis response plan was Ford's Bailout. Although Ford did not receive TARP funds, it did receive government loans. These were critical because banks were not lending during the financial crisis. It requested a $9 billion line-of-credit from the government.
Explanation:
Crisis management is the application of strategies designed to help an organization deal with a sudden and significant negative event. A crisis can occur as a result of an unpredictable event or as an unforeseeable consequence of some event that had been considered a potential risk.
Most companies are schooled in establishing a crisis management plan in order to react quickly and eliminate the problem. Here is the process: Identify and define the crisis. Establish an overall corporate response.
Answer:
See the explanation Section
Explanation:
Every day I have to go to the market to purchase day to day utensils. Recently I witnessed a severe incident there. Before the incident day, I bought two pounds of onion with forty BDT. After the very next day, the price increased to 100. That happened due to the syndicate of businessmen and agents. However, it is challenging for the general people to take immediate action against them. That incident occurred due to the crisis of onions around the market. Moreover, there was little import from the neighboring countries.
