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omeli [17]
2 years ago
7

Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve req

uirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? Which events could cause the increase in the money supply to be less than its potential?
A. Banks decide to keep some excess reserves on hand.
B. Banks choose to loan out all excess reserves.
C. All money loaned out is deposited back into the banking system.
D. Some loan recipients choose to hold some cash instead of depositing all of it in banks.
Business
1 answer:
Semenov [28]2 years ago
7 0

Answer:

35000

A, d

Explanation:

Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.

If $3500 is deposited and reserve requirement is 10%

reserves would increase by $3500 x 0.10 = $350

Increase in the total value of checkable deposit is determined by the money multiplier

Money multiplier = amount deposited / reserve requirement

3500 / 0.1 = 35000

If the banks keep excess reserves, the amount of money available to be loaned out would reduce and this would reduce the increase in money supply.

Also, if individuals keep the money at home, it would reduce the amount of money that can be loaned out by banks

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Elaborate on two instances at the workplace where "silence is golden " may be applicable.
damaskus [11]

Answer:

It could be applicable when there is a negative compliment: When this happens it is best and advisable to be silent about it and continue with the work activities. Negative compliments are usually hurtful to the recipients and tempers may flare up if words are exchanged.

It could also be applicable when important informations are passed during meetings: Some meetings at work requires dissemination of information with various steps in accomplishing them. If an individual isn’t silent and pays less attention, a step may be missed and will make the worker being unable to perform the task.

5 0
3 years ago
Choose the statement about ITQs that is correct.
melomori [17]

Answer:

D.  When ITQs are​ used, no one has an incentive to cheat and exceed the quota.      

Explanation:

As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).

Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.

The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.

4 0
3 years ago
Alex works at the Pretzel Factory. The customers always compliment the pretzels Alex makes, saying they taste better than any ot
defon
Tell Alix to make smaller pretezls. They will taste better, but use less ingredients, therefore keeping the cost lower than it is now. Hope this helps!
8 0
3 years ago
Compare transnet with a perfect competitor in terms of price and output and profit
Sergeu [11.5K]
Transnet SOC Ltd is a rail, port, and pipeline company in Johannesburg. 

Price: This company is a price maker, therefore, in terms of price, Transnet perfect compitetor is a price taker.

Output: Transnet has the ability to decide the quantity of their output and they have many competitors on this one.

<span>Profit: Transnet might be able to increase their profit but in a competition it would be hard because customers might switch to the competitor. </span>
6 0
3 years ago
A.J., a 20-something college graduate, was recently hired as a financial-analyst assistant for a large company. He recalled that
Helga [31]

Answer:

prepare an expense record, and make certain that his credit is good so he can continue to spend more than he makes

Explanation:

Since in the question it is mentioned that an individual is recently hired as a financial analyst for a big company he remebered that how he can manage his personal finance and the financial concerns so in order to maintain its approach with respect to his own finance we should suggest that first prepare the record of an expense and also certain about the good credit score so that he is able to spend more

Therefore the first option is correct

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3 years ago
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