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3 years ago

How does the fractional reserve system increase the money supply in a country?

Business

1 answer:

yanalaym [24]3 years ago

7 0

Answer:

A. By giving banks the authority to print their own money in an economic emergency is the correct answer.

Explanation:

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The owner of Grandma's Applesauce is planning to retire after the coming year. She has to repay a loan of $50,000 plus 8 percent

Aleks04 [339]

Answer:

Option (B) $5,000

Explanation:

Data provided in the question:

Repayment of Loan = $50,000

Interest = 8%

Cash flow Probability

$65,000 70%

$45,000 30%

Tax rate = 0%

Now,

Interest on loan = 8% of $50,000

= $4,000

Expected value of cash flow = ∑[cash flow × Probability ]

= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )

= $45,500 + $13,500

= $59,000

The owner's expected cash flow after debt service

= Expected value of cash flow - Interest on loan - Repayment of Loan

= $59,000 - $4,000 - $50,000

= $5,000

Hence,

Option (B) $5,000

3 0

3 years ago

Kurt works as a waiter at a restaurant that's part of a nataional chain, producer or consumer?

Likurg_2 [28]

Producer because they do work for the company, I believe

6 0

3 years ago

In many of the examples of specialization and trade it sometimes seems that one country is?

Y_Kistochka [10]

In many of the examples of specialization and trade it sometimes seems that one country is?

It is getting favored more ideal arrangement over another, but we have near the no experience with the overall thriving created by the trade or prosperity produced by the exchange.

Specialization is a technique for creation by which an element centre around the development of a restricted extent of merchandise to acquire a more prominent level of effectiveness. Numerous nations, for instance, spend significant time in creating the labor and products that are local to their region of the planet, and they exchange them for different labor and products.

To learn more about specialization enable countries to trade with one to another country

brainly.com/question/7298572

#SPJ4

6 0

2 years ago

Acme Home Builders, Inc., has build 24 houses so far this year at a total cost to the company of $4.80 million. If the company b

Dmitry_Shevchenko [17]

Answer:

25th house's Marginal cost is $250,000.

Explanation:

Given:

Total cost of 24 houses = $4,800,000

Total cost of 25 houses = $5,050,000

Marginal cost = ?

Computation of marginal cost:

Marginal cost = Change in total cost

Marginal cost = Total cost of 25 houses - Total cost of 24 houses

Marginal cost = $5,050,000 - $4,800,000

Marginal cost = $250,000

So, we say that 25th house's marginal cost will be $250,000 .

5 0

4 years ago

Lumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division.

babunello [35]

Answer:

hhfjkn a hga a a a a a a a. tsiydit jlfkyfl gljfulv. yfiydiyridiydiyr oriy

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3 years ago