Answer:
The people in an economy have $25 million in money. There is only one bank where they deposit their money and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?
D. 10
Explanation:
10% of $25, 000, 000= $2,500,000
Money multiplier in this economy is by 10
<u>Answer:
</u>
In the circular flow model, goods markets provide for the transfer of money and labor markets provide for the transfer of inputs.
<u>Explanation:
</u>
- The liquidity of money in goods markets is kept unhindered by the flow of goods, as a result of which, the transfer of money keeps happening.
- On the other hand, the labor markets function as the source of necessary input that is required for the business to keep running.
- When both these markets work in synchronous, there is a circular flow of entities within the market.
<span>Major risk is patients using the product incorrectly and so ending up in insulin shock, leading to patient illness and potential hospitalization. This could lead to reputational damage in both the general public and medical communities. The reputational damage may lead to less uptake of other products by the company and poor sales of the current product. This problem could also lead to legal jeopardy if the company is aware that this is a potential issue but does not correct the problem.</span>
Answer:
a) $550,000
Explanation:
Treasury stock transactions do not affect shares issued, because treasury shares are included in issued shares. The only event during the year affecting the total par value of common stock issued is the July 9 issuance of shares that were not issued before.
The stock split does not change total par of shares issued, because par is cut in half and the number of shares is doubled. Treasury shares are protected, meaning they are also doubled and have their par cut in half. The total par of issued common stock at year-end is $550,000:
$500,000 from January 1
Plus $50,000 from July 9 issuance: 10,000 × $5
Equals $550,000 total par of issued shares.
Source: https://www.brainscape.com/flashcards/dividends-7208677/packs/11475096
Answer:
A single commercial bank cannot lend more than its reserves because if checks are written for a higher amount than those reserves, the commercial bank will lose its reserves.
On the other hand, in a fractional reserve system, the system as a whole cannot lose reserves because they are backed up by other banks.
Finally, the relationship between the monetary multiplier and the reserve ratio is inversely proportional. If the reserve ratio goes up, the money multiplier will go down because banks will have less money available to loan, and therefore, will create a lesser amount of money.