Answer: Agency problem
Explanation:
Agency problem is the issue rises when the agents fails to display appropriate interest of principles.This interest conflict usually occurs between the organisation's stakeholder and management.
In this situation,manger is the person who usually acts as the agent for providing best interest to the stakeholder to increase their wealth and benefit.But if failure in this case occurs , then conflict is experienced between both the parties.
Answer:
Option (B) is correct.
Explanation:
Given that,
Required reserve ratio = 15 percent
Bonds sell to public = $25.5 million
Bank reserves decreases by $25.5 million because of the purchasing of bonds from the Fed.
Money multiplier:
= 1/Required reserve ratio
= 1/0.15
= 6.67
Therefore, the money supply decreases by:
= Money multiplier × $25.5 million
= 6.67 × $25.5 million
= $170 million
The quantity of the $1,000 deposit is the bank required to keep in reserves is 20%.
<h3>What is a reserve deposit?</h3>
A reservable deposit would be any bank deposit subject to bank reserves established by the Federal Reserve Bank of the United States.
Some key features of reserve deposit are-
- Through the mechanism of fractional reserve banking, such a deposit could be used in part as a loan.
- The remaining portion, as established by the Fed's bank reserves, must be kept by bank & made available for prompt withdrawal upon request.
- A reservable bank is a banks deposit that is subject to the reserve requirement guidelines of the Federal Reserve.
- Transaction (checking) savings account, savings accounts, as well as non-personal time deposits are all examples of reservable deposits.
- Sweep accounts, often known as money market funds, is non-reservable deposit account that generate a greater rate of interest than reservable deposit accounts.
To know more about the reservable deposit, here
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Answer:
True
Explanation:
The working capital is the difference between the current assets that is used in daily operations e g cash to current liabilities that are to be met in daily operations e g suppliers credit.
It's better kept at ratio 2:1 for the Company to continuously meets his obligations in order to ensure perpetuity.
The element of the four P's that they are attempting to create value for dad and other customers is the product. It is because their way of serving black coffee through which the customer serves themselves is a way of using the product in creating a value for their customers, especially that even if it is simple, it has caught the customer's attention and making them go back for more.
