Answer:
the required reserve is $8,400
Explanation:
The computation of the required reserve is shown below;
Required reserves is
= reserve requirement × Checkable deposits
= 4% × $210,000
= $8,400
By mutiplying the reserve requirement with the checkable deposit we can determine the required reserve
hence, the required reserve is $8,400
Answer:
b) Expectations of higher short-term interest rates in the future
Explanation:
When the yield curve is normal (upward sloping) it is because investors expect longer-maturity bonds to have a higher yield than shorter-maturity bonds, since interest rates are expected to rise in the long term.
On the contrary, if the yield curve is flat, it is because short-maturity and long-maturity bonds are giving the same, or almost the same yield, indicating that investors expect short-term interest rates to rise so much, that they compensate the capital gains for short-maturity bonds in terms of interst.
Sloan has adopted the “punishment” form of reinforcement towards his employees.
<u>Explanation:</u>
Punishment at the workplace means when new adopted changes or behavior lead to negative consequences at the workplace.
Sloan’s method of awarding only when the employees perform well is a case of the same. His action of deducting the employee's salary by 20 percent too would not positively encourage them to perform well, but lead to dissatisfaction and contempt towards him.
Answer:
In what ways was the economic prosperity of the 1920s genuine, and in what ways did this prosperity disguise serious economic problems?
Do you think most people perceived the underlying problems in the economy? Why or why not?
Explanation:
The factors which contributed to the counterfeit prosperity of the 1920s were the abundant availability of consumer goods; farmers bought plenty of land and farm equipment and produced a large amount of goods for market; the availability of credits and the stock market performance led the people to obtain higher standards of living and leisure time; President Herbert Hoover and other politicians declared that the economy was doing extremely well.
But people realized a dramatic change in the economy, when it went from this apparent prosperity to a severe depression between 1929 and 1932, with the stock market-black tuesday in Oct., 29, 1929, when the farmers-demand for food goes down after WWI, prices went down, farmers over produced, could not pay back loans and land was lost
; loans not paid back caused banks failed, people began spending less on consumer goods and personal income and debt-income gap between rich and poor increased.
