Answer:
C) 92 percent of its deposits.
Explanation:
Since, the reserve ratio represents the portion of deposit that a commercial bank must hold onto, rather than lend out or invest.
i.e. if reserve ratio = a%,
Then the percentage of amount that bank can land out = (100-a)%,
Here,
Reserve ratio = 0.08 = 8%,
Thus, the percentage of amount that bank can land out = (100-8)% = 92%.
i.e. bank can land 92 percent of its deposits.
If weston mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent, and a wacc of 17.1 percent. ignore taxes. the equity-asset ratio is:0.48.
<h3>How to find the equity -asset ratio?</h3>
Given data:
Cost of equity = 20.8%
Pretax cost of debt = 9.4%
Wacc =17.1%
Hence,
Equity -asset ratio:
0.208=0.171 + [(0.171 - 0.094) ×E/A]
0.208 -0.171 = [(0.171 - 0.094) ×E/A]
0.037= 0.077 ×E/A
E/A = 0.037/0.077
E/A =0.48
Therefore the equity- asset ratio is 0.48.
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Since the government is making this requirement and not the people or consumers of the host country, this example is an example of host government demands.
Answer: The Price Elasticity of demand is Inelastic at 0.05
Explanation: Elasticity of demand is the degree of responsiveness of price to quantity demanded.
Using the equation; Q= 17-2P+3P/S
Where P = $0.60; P/S = $2.40
Q = 17 - 2 (0.60) + 3 (2.40)
= 17 - 1.20 + 7.20 = 23
Price elasticity of demand at Price = $0.60 is change in price x Price/ quantity
Therefore; -2 × 0.6/23 = -0.05
Using absolute value, the Price elasticity = 0.05
This is inelastic because demand is less than 1.
Service Provider II Suggested Tip
~none~ II $1 per night
hotel housekeeper II $2 to $5 per night
restroom attendant II 50 cents to $1
grocery loader II $1 to $3
~none ~ II $5 to $10
manicurist II 10% to 15%
hotel room service deliverer II 15% to 20%
