The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.
<h3>What happens when reserve requirements are increased?</h3>
Banks are known to often hold a lot of reserves if reserve requirements are increased.
This is because it is one that they can be able to use if they want to loan out less of each dollar that is said to be deposited. By raising the the reserve ratio, and also lowers the money multiplier, and lowering the money supply.
Therefore, The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.
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Answer:
The opportunity cost of each pipe and sunk cost of each pipe is $ 8 and $6 respectively.
Explanation:
Opportunity cost: The opportunity cost is that cost which gives the best alternatives options.
Sunk cost: The sunk cost is that cost which is incurred in the past and hence, not recovered in the future.
So, in the given question, the opportunity cost is $8 per pipe as it reflects new current price whereas, the sunk cost is $6 per pipe ($8 per pipe - $2 per pipe) that cannot be recovered in the future
"Redlining" is the practice of a lender of limiting the quantity of loans available; this is against the fair housing law.
<h3>Which loan kind will quickly and significantly reduce the principal balance?</h3>
Illumination: A loan's principle is fully repaid and equity is built up more quickly the shorter its tenure. The LARGEST and SPEEDIEST principle reduction would be achieved with a multiyear loan at the a 13% interest rate.
<h3>There are four crucial steps that must be taken when a lender processes a loan:</h3>
There are four crucial steps that must be taken when a lender processes a loan. Analyze the borrower's capacity for loan repayment. Determine the estimated value of the asset serving as loan collateral. Examine the title's marketability by doing some research.
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Answer:
$20000
Explanation:
Given: Total cost of computer system= $50000.
Residual value= $5000.
Useful life= 5 years.
Now, calculating depreciation expense as per double-declining balance method.
⇒ 
⇒ 
∴ 
Hence, $20000 is the depreciation expense for first year as per double-declining balance method.
Employment patterns become inconsistent due to specialization and trade because the qualifications needed from an applicant can change or become too specific because of the specializations. Trade can change the required knowledge needed from an applicant based on what products are being traded.
