Answer:
B) reserves lost by any particular bank will be gained by some other bank.
Explanation:
Banks "create" money when they make loans or buy securities from private parties. This money creation is the result of the money multiplier = 1 / reserve ratio.
This money creation process is not affected by which specific bank may hold the deposits, since money withdrawn from a bank will end up in another bank. The money multiplier applies to the whole banking system, not just an individual bank or group of banks.
Answer:
The correct answer is option c.
Explanation:
We know that the resources in an economy are scarce. We need to use these scarce resources that have alternative uses to satisfy unlimited wants and needs.
The resources are said to be efficiently allocated if it is not possible to increase the production of one good without reducing the production of the other.
If it is possible to increase the production of both goods or increase the production of one while keeping other constant, it means that the resources are not efficiently allocated.
Brainstorming and also the infinity diagram can be used in group decision making.
Answer:
The times per period the average inventory balance is sold.
Explanation:
The formula for inventory turnover is as follows:
Where:
Average inventory = (beginning inventory+ ending inventory)/ 2
Considering the formula this makes the third option the only correct answer As it do not consider obsolote neither purchases for the period.