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.
The potential for industry growth, whether it seems as though competition will only get stronger or weaker, and the company's competence in carrying out industry key success factors.
An organized subset of economic activity is the subject of this article. See Manufacturing and Industrial society for information on mass manufacturing and its implications. An industry is a division of an economy that creates a cluster of closely linked goods, services, or raw materials (for a list of additional uses, see Industry macroeconomics). One may cite the wood business or the insurance industry as examples.
Industry classifications often use a company's or group's major source of revenue when evaluating it to place it inside a certain industry. For instance, "statistical units" are categorized by the "economic activity in which they primarily participate" according to the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide.
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Answer:
$63,000
Explanation:
One of the four methods of determining insurance if the DINK method which means Double income with no kids.
To estimate the value of the insurance using this method , the sum of , mortgage , car loans and personal debt is divided by two and added to the funeral expenses
Mortgage - 100,000
Car loan - 11,000
Personal debt - 2000
Credit card - 3000
Total = 116,000
Insurance = (116,000/2) = 58,000
Funeral expenses - 5,000
=63,000
Answer:
d. $38.00
Explanation:
The computation of the overall Belinda expense for the week is shown below:
= Bus fare expense + lunch out expense + hair cut expense + movie rental expense
= $8.70 + $7.35 + $16 + $5.95
= $38
We have added all the types of expenses that are provided in the case i.e. bus fare, lunch out, hair cut and movie rental expenses.
