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Morgarella [4.7K]
3 years ago
9

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Business
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Naddik [55]3 years ago
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A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of?
blsea [12.9K]

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).

To know more about reserve ratio, here

brainly.com/question/13758092

#SPJ4

3 0
2 years ago
Which of the following is one symptom that might indicate a problem with your computer memory (RAM)?
sweet-ann [11.9K]

The correct answer is D

D- Randomly corruption files

Have a good day and good luck.

4 0
3 years ago
Read 2 more answers
Perfect substitutes A. always have indifference curves with slopes of minus1. B. have horizontal indifference curves. C. always
torisob [31]

Answer:

Option (D) is correct.

Explanation:

Perfect substitute goods are the goods which can be used in place of each other.

Perfect substitutes refers to the goods which are having identical characterstics, features and provide the exactly same level of satisfaction.

The marginal rate of substitution for these perfect substitute goods remains constant which means that the trading of one good for the another good is at a fixed rate.

3 0
3 years ago
The most important source of oligopoly is: economies of scale. government-created barriers. technological superiority. all of th
djyliett [7]

Answer:

economies of scale

Explanation:

Economies of scale are the result of increasing returns to scale, this means that the higher the output, the lower the production costs per unit. This means that large producers will have an advantage over smaller producers which will eventually allow them to make more profits and sell at lower prices. After a while, only large producers that are able to manufacture goods at a low price will exist, e.g. car manufacturers.

6 0
3 years ago
______ is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) Cooptation (b) Coalition (c
Bas_tet [7]

Answer:  Competitive aggression is exploiting a distinctive competence or improving internal efficiency for competitive advantage. Your answer is D.

8 0
3 years ago
Read 2 more answers
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