Answer:
The answer is: C) hold only a fraction of their assets in the form of reserves against their deposits.
Explanation:
Fractional reserve banking refers to a banking system in which banks keep as reserves only a percentage of the money their clients deposited. By doing this, banks are able to use the rest of their clients' funds to make loans and other financial operations, therefore creating "new money". For example, a client A deposits $100, the bank keeps in reserve $10, and loans $90 to a different client B. Client A's $100 have created an extra $90 in new money.
Answer:
7.6%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Global Beta × (Global Market rate of return - Risk-free rate of return)
= 4% + 0.90 × (8% - 4%)
= 4% + 0.90 × 4%
= 4% + 3.6%
= 7.6%
The (Global Market rate of return - Risk-free rate of return) is also called global market risk premium
Answer:
d. strategic alliance.
Explanation:
A strategic alliance -
It is the practice between any two companies , which gives both of them some mutual profit by working on a common project , is known as a strategic alliance .
The idea behind starting a strategic alliance is to improve or expand the company in the upcoming market , this can be a short term or a long term agreement plan .
This agreement tends to benefit both the company .
Answer:
$1,200
Explanation:
Actual Cash Value defined either as i) the fair market value of the item, or ii) the Replacement Cost of the item minus depreciation based upon the age of the item that was damaged.
Replacement cost = $2,000
Depreciation= 3 years remaining of it's life = 3/5 × 100 = 60%
Actual cash value = $2,000 × 60% = $1,200.
Answer:
Human Resource Management
Explanation:
Employees in a successful business are part of business, they are treated as assets, and not any expenditure or liability, they are human assets.
The Human Resource Management refers to policies, practices and any kind of system which impacts and influences the human behavior towards the organisation and their goals.
In this management as the name suggests human as a resource to the organisation is managed by formulating policies, and practices to attain maximum use of human resource, and utilizing this resource in the best possible manner.
Correct Answer
Human Resource Management