$20,000 is correct
When they ask for the amount the bank can "create" they are really asking for the <u>change in the money supply</u><u>.</u> They are required to reserve 20%, so they can loan out 80%
80% * $5,000= $4,000
Now, the bank can use this $4,000 by loaning it out to other customers and earning interest on those loans. The customers can use the money for investments or spending. So the first little deposit of $5,000 has now spread to a lot more people and created a lot more opportunity for growth. This is known as the <u>multiplier effect.</u> To put the multiplier effect in dollar amounts, we need to know how much we are multiplying by. This is called the <u>deposit multiplyer</u> and the formula is 1/(required reserve ratio). The reserve ratio here is 20% or .2
1/(.2)= 5
Our deposit multiplier which will calculate the multiplier effect on the money supply (aka the amount the bank can "create") is 5
5* $4,000= $20,000
Answer:
The correct answer is A) The middle-of-the-road style
.
Explanation:
This leadership is characterized by the balanced behavior of managers where a balance is maintained between the operational and organizational function along with the motivation of the entire work group. In this type of leadership, the manager is very clear about his role in terms of work to achieve adequate behavior, but at the same time he considers that the group environment is important to achieve the proposed objectives and for this reason he also cares about the state of encouragement of employees.
<span>Checking the upholstery is not one of the important pre-trip tasks. This is not something that will affect anything other than the passenger comfort during the trip. Making sure that one has enough gas and other fluids in the car is much more important to the overall trip.</span>
Answer:
video game
Explanation:
because I don't go outside, I'm a gamer
Answer:
Cybernetic approach
Explanation:
Cybernetic approach is the method or the approach for exploring the system of the regulatory, its possibilities, structures and constraints. It involve the study of derived concepts, feedback and black boxes like the communication and the control in business and living organisms, involving the self - organization.
Therefore, when the communication is investigated at the workplace through finding the optimal methods which is set up for the communication network system for the employees who telecommute, states the cybernetic method to communication.
