When a bank's loans are written off, then the bank's RESERVES SHRINK WHEREAS ITS DEBTS REMAINS THE SAME. Sometimes, due to unpleasant situations, banks are forced to write off loans which they hand lend out to borrowers and which the borrower are unable to repay. This action reduces the amount of money that the bank has in its reserve.
Sociotechnical systems theory, quantitative management, organizational behavior, and systems theory are all examples of scientific management approaches to management.
<h3>What is
scientific management?</h3>
Scientific management is a theory that analyzes how workflows this is to improve the efficiency of the economy.
- It includes logic, rationality, sociotechnical systems theory, quantitative management, and organizational behavior.
Therefore, sociotechnical systems theory, quantitative management, organizational behavior, and systems theory are all examples of scientific management approaches to management.
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Answer:
This proposition isn't socially alluring. On the off chance that regular monopolists are permitted to decide their benefit amplifying yields and costs, at that point the yield of the common monopolist would in any case be at the problematic level where cost surpasses minor expense, demonstrating an under-designation of assets to the item.
It would be progressively alluring to constrain the normal monopolist to charge a value equivalent to minor cost and sponsor any misfortunes. Reasonable return valuing, that is, setting value equivalent to Average Total Cost would be an improvement over this proposition. The imposing business model firm could gain ordinary benefit by settling on reasonable return valuing proposition.
Answer:
$100 would be held as required reserves
$900 would be available to be given out as loans
Explanation:
The required reserve is the minimum amount set by the Central bank that must be held as reserves by banks.
If $1000 is deposited and 10% is the required reserves, 0.1 × $1000 = $100 would be held as required reserves.
$1000 - $100 = $900 would be available to be given out as loans.
I hope my answer helps you.
Answer:
9%
Explanation:
The first step is to understand the relevant terms in the question
Average Cost of New Capital
The cost of capital represents a required return rate (in percentage) an organisation or an individual ( in the case of John) will need to make a capital project advantageous, worthwhile or profitable.
In the case of John, the Average Cost of New Capital is 9%
MARR - Minimum Acceptable Rate of Return
This rate also in percentage represents the lowest or minimum rate of return a business or an individual is able to accept in order to start a given project. It is usually based on the risk of the project as well as the alternate benefit foregone if other projects were accepted.
It is also called the Hurdle rate, or the cutoff rate.
John's MARR is 18%
Based on these,
John's Net rate of return is calculated as follows
Minimum Acceptable Rate of Return - Average Cost of the New Capital
= 18% - 9% = 9%