The act of providing a loan by the banker to the borrower amounting to $800 after setting aside the reserve amount of $200 contributes to the increase of the money supply by $800.
<h3>What is the money supply?</h3>
The money supply is the amount that a public held at a point in time including currency notes, coins, and the bank account balances.
When the banker is giving the loan to the borrower at $800 then it infuses the money into the economy as this amount is further given as a loan by another bank to another borrower. This whole cycle goes on to continue till the amount reaches zero.
Therefore, the money supply increases by $800 when the banker gives loans to the borrower for the amount of $800.
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Answer: True
Explanation:
Marginal benefit is the maximum amount that a consumer will be willing to pay for an extra product. It should be known that as consumption rises, the marginal benefit starts reducing.
The marginal cost is the extra cost that a producer incurs when an extra unit of a product is made. Economic decisions made by economic agents are typically based on marginal as it'll be possible to know the impact of an extra decision made on a variable.
Therefore, it is better to evaluate economic decisions at the marginal, where the decision has to be made as long as its marginal benefit exceeds its marginal cost, if not equal to its marginal cost.
Your résumé should be one-of-a-kind is True.
<u>Explanation:</u>
Each resume is a stand out showcasing a correspondence. It ought to be suitable to your circumstance and do precisely what you need it to do. Most continues use the great switch sequential configuration. Your name and contact data go at the top, followed quickly by your business history. Truly it is the substance of your resume that issues more than all else and those tricks sit idle however aim interruptions.
Beginning with your current or most latest position and strolling back through time, this arrangement doubtlessly shows enrollment specialists precisely where you've been including instruction, unique research, introductions you've given and papers or books you've had distributed.
Answer:
Hedging increases value of a company through:
Reducing costs of financial distress.
Explanation:
Hedging is a risk reduction and management strategy, which a company employs to offset or reduce its losses in investments by assuming opposite positions in some related assets. The reduction in risks through hedging results in some reduction in the profitability of the investments, based on the basic understanding of risk-return trade-off. Hedging strategies are done with derivatives, such as options and futures contracts.
Answer:
a financial checkup should be completed annually.
