Answer:
Increase by $500 m
Increase by $250 m instead of $500 m
Explanation:
Since all the deposits over and above the reserve requirements are loaned out by the banks,
We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.
Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times
So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.
For a 20% reserve ratio, Credit multiplier changes a,
Credit Multiplier = 1 / 0.2 = 5 times
This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.
Hope that helps.
Answer:
Theory X
Explanation:
Theory X is one of the types of management. In this type of management, the managers presume that the employees are not motivated towards their work. They step out with methods like remuneration and increments to motivate the employees. These additional benefits are provided to them when the employees show great responses in tangible forms. The managers hold the thought that the employees need to be controlled and threatened to bring the maximum output of them. They also assume that the employees need constant supervision at every stage of their work.
In the given excerpt, it is evident from the steps taken by Jerry that he is a Theory X manager.
Answer:There u go
Explanation:
Perhaps you have heard of the miracle of compounding. Innumerable investors have used it to their advantage to make their money grow faster than would be the case with simple interest. The great thing about compounding is that it doesn't require additional work on your part: you just sit back and watch your money grow. How's that for an investment strategy?
There are two basic types of interest: simple and compound. Simple interest is the amount of interest earned on the original amount of money invested. Simple interest is paid out as it is earned and does not become part of an account's interest-bearing balance. The invested amount is called principal. Let's say you invest $100 (the principal) at a yearly interest rate of 5 percent. Multiplying the principal by the interest rate gives you an interest payment of $5. This is your simple interest. The next year and each year thereafter, you will be paid $5 of interest on the principal of $100.
Compound interest is interest paid on interest. At 5 percent interest compounded annually, you will have $105 after the first year. If you keep this investment for another year, you will be paid interest on your original $100 and on the $5 you made in interest the first year. The longer you invest your money, the higher your interest payments will grow, not only on your original amount but on the additional interest you earn each year. This is what makes compounding interest so powerful.
When credit unions speak of compounding, they refer to dividends rather than interest.
The longer an investment is allowed to compound interest, the faster your balance will grow and the higher your returns will be. In the case of compounding interest, time really is money. Let's say you invest $1,000 for five years, with an annual interest rate of 5 percent. The difference in your investment earnings from simple and compounded interest will look like this:
Comparison of Simple and Compound Interest
Answer:
Market development
Explanation:
Market development can be described as a marketing strategy in which new market segments are identified and developed for current products of a company.
The focus of a market development strategy are the existing customers and new customers in the targeted segments that are not currently buying the products of the company.
Market development is therefore a marketing strategy that is employed when a company wants to expand its total market by making effort to promote its current product to new consumers or a new geographical area.
From the question, the statement that "To continue to grow, we need to target more segments" by Simone indicates that the strategic path Simone is pursuing is <u>market development</u>.
