Answer:
The increase in reserve will ultimately lead to an increase in the money supplied.
Explanation:
From the scenario under study, the bank is greeted with uncertain economic realities. To cope with this, the bank resolves that rather than lend out excess reserves, it should rather increase the percentage of deposits held as reserve from 10% to 25%. Thus, this leads to a multiplier effect. And the reserve ratio from the forgoing is 1 to 4. That is, 1/10 to 1/4. Meaning there's a reduction in multiplier effecf of 10 to 4. And looking critically, this is a reciprocal of the new reserve ratio of 1/4
When bank hold more reserve, the ripple effect is that the Fed would buy more bonds. To increase the money supply by $200, however, the Fed will need to get a bond of $50.
The implication of this is that the bank reserve will rise in same amount. But taking the multiplier effect into cognizance, a small multiplier will be occasioned in form:
$50 * 4= $200.
Effectively, we have increased the money supply by $200, owing to the multiplier effect.
Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
Answer:
The correct answer is: Processing cost.
Explanation:
Processing cost is an accounting term that refers to collecting useful information of manufacturing costs of the units that are being produced. This approach is used in large entities where products are manufactured in masses and those units are almost identical or equal to ease the production process.
Answer:
B. First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills.
Explanation:
First-line managers are a group of managers that are tasked to oversee the company's daily operation. This require them to directly communicate with the employees. This is why, they use mainly technical and human relations skills.
Top managers on the other hand, are tasked to oversee the company's long term interest. They are the one that is involved in<u> creating strategic planning</u> that will drive the company to reach its end goal. This is why they rely most of their time on conceptual skills. That being said, top managers also need human relation skills to form network with other people who had high influence in the industry.
