Mandatory spending is something that either has, or is strongly urged to be done. Discretionary spending is based on the spenders discretion, if the spender thinks it needs to be spent, then they would do so. Example of mandatory spending would be paying back a loan. Example of discretionary spending would be a good business investment. Hope this helps!
1) Banks hold excess and secondary reserves toA) reduce the interest-rate risk problem.
2) Which of the following statements most accurately describes the task of bank asset management?
b. Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
3) The goals of bank asset management include
d. purchasing securities with high returns and low risk.
Hope this helps. Have a nice day.
A firm that relies heavily on debt are the firm that describe a highly leverage firm. Highly leveraged firm refer to a firm that depends on borrowed capital. They have higher debt that equity. Their debt is what they considered as asset.
Answer:
d) the ratio of the money supply to the monetary base.
Explanation:
Money multiplier is the maximum change in checkable deposits (extra money) resulting from an increase in bank reserves by one dollar.
Money multiplier are enhanced by the central bank.
Additionally, the money multiplier is equal to the ratio of the money supply to the monetary base. This simply means that it is equal to one (1) divided by the required reserve ratio;
MM = 1 / (required reserve-deposit ratio).
