In risk management what does risk evaluation involve?

Suppose that the required reserve ratio is 20 percent for commercial banks and there are currently no excess reserves. Then, one

zysi [14]

Answer:

The amount of money created will be $1,250,000

Explanation:

In order to find the maximum amount of money that will be created in the banking system as a result of a deposit, we need to find the money multiplier.

Multiplier = 1/reserve ration = 1/0.2 = 5

The amount of money created = Multiplier *Initial deposit

Amount of money created = 5* 250,000

= 1,250,000

4 0

3 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

Tatiana [17]

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

7 0

3 years ago

Defining a business in terms of goods and services rather than in terms of the benefits customers seek is called _____.

viva [34]

<span>Marketing Myopia is the term for when a company does business in terms of goods and services instead of focusing on the benefits consumers are looking for. These companies are focused on the bottom line. It is considered a short-sighted view by most experts and often causes the companies in question to be unable to quickly adjust when there are changes in their particular markets.</span>

6 0

3 years ago

During a recent month, Canon Company planned to provide cleaning services to 30 customers for $ 26 per hour. Each job was expec

prisoha [69]

Answer:

$1,950 more than expected

Explanation:

In this question ,we have to compare the revenues based on expected and the actual

So, the expected revenues would be

= Number of customers × per hour rate × expected time spent

= 30 customers × $26 × 8 hours

= $6,240

And, the actual revenues would be

= Number of increased customers × per hour rate × average time spent

= 42 customers × $26 × 7.5 hours

= $8,190

The revenue is increased by

= $8,190 - $6,240

= $1,950 more than expected

This is the answer but the same is not provided in the given options

7 0

3 years ago

Costs and benefits that should be ignored when making decisions are called ______ costs and benefits.

miskamm [114]

The first step in making a choice is to define the issue at hand. When making judgments, related costs and benefits should be evaluated. When making judgments, extraneous costs and advantages should be overlooked.

8 0

2 years ago

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