A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.
<h3>What is reserve ratio?</h3>
The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.
Some key points related to reserve ratio are-
- The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
- Regulation D of the Federal Reserve Board establishes the reserve ratio.
- Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
- Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).
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Answer:
Correct option is (D)
Explanation:
Total cost is a sum of Total fixed cost and total variable cost. Fixed cost does not change with the change in number of units produced. Variable cost on the other hand increases with the increase in production.
So, initially fixed cost is higher than variable cost at a certain production level. As production increases, fixed cost is spread across units and per unit fixed cost falls but variable cost keeps increasing, so total cost keep increasing with increase in production because of variable cost component.
Explanation:
Looking from a fair point of view, the White owners of businesses have legitimate reasons to feel that the Act constitutes illegal reverse discrimination.
Remember, reverse discrimination implies an unfair treatment of the majority group (White owners) in an effort to please the minority group. This is evident from the fact that the 10 percent of all federal grants to be released by the Economic Development Administration was only to be used to purchase services or supplies from businesses owned and controlled by U.S. citizens belonging to one of six minority groups excluding the White business owners; making the White owners feel discriminated against.
Thus, unintentionally the Act became a reverse discrimination on White business owners.
Answer:
Wyman company should recognize a foreign exchange loss in the amount of $12,600
Explanation:
On the date of sale: £1 = $1.35
So £60,000 = 60,000 × $1.35 = $81000
On the date of payment: £1 = $1.14
So £60,000 = 60,000 × $1.14 = $68, 400
The amount Wyman company received on the date of payment is $12,600 less than the amount it ought to have received on the date of sale.
So Wyman company should recognize a foreign exchange loss in the amount of $12,600
Answer:
d. change in total revenue per one unit change in quantity sold.
Explanation:
A monopolist marginal revenue is change in total revenue per one unit change in quantity sold.
Average revenue is total revenue divided by quantity sold.
A monopolist is a firm that only exists in an industry.
I hope my answer helps you.
