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Lena [83]
2 years ago
14

You take $150 you had kept under your mattress and deposit it in your bank account. Suppose this $150 stays in the banking syste

m as reserves and banks hold reserves equal to 12.5 percent of deposits. The total amount of deposits in the banking system increases by_______, and the money supply increases by______.
Business
1 answer:
iogann1982 [59]2 years ago
3 0

Answer:

The answer is $12.

Using the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Therefore, the total money created in the banking system is $12. From the above, it could be rightly said that creation of money by banks is a process whereby the banks received deposit from customers and give the deposit to borrowers in the form of loan after deducting cash or reserve ratio.

You might be interested in
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations
NISA [10]

Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\

With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

2m as an area and the height is "x"

x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\

7 0
1 year ago
Margaret incurred one personal casualty loss caused by a federally declared major disaster in 2019. The amount of the loss, afte
iogann1982 [59]

Answer:

$0

Explanation:

There are two Step for the computation of casualty loss deduction if the casualty loss is personal

Step 1  Reduce $100 per casualty event from the casualty loss

Step 2 Reduce 10% of the AGI from the amount you get from step 1

Data

Loss = $2,500

AGI = $35,000

Deduction =?

Solution

Step 1 =  $2,500 - $100 = $2,400

Step 2: $2,400 - ($35,000 x 10%) = $0

If the amount in step 2 is $0 then the person is not eligible for casualty loss deduction  

8 0
2 years ago
One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm
Alchen [17]

Answer:

The correct answer is number (1): True.

Explanation:

Due diligence refers to the exercise an individual is subject to after entering a contract with another party by which a certain standard of care is expected from the individual.  

The United States Sentencing Commission is the governmental agency in charge of reviewing sentences discrepancies and promoting fair sentencing.

<em>In front of ethical issues within a firm, the U.S. Sentencing Commission states that the company must have disseminated a code of conduct so that the filing company can allege a violation of the due diligence employees are subject to.</em>

8 0
1 year ago
When Nina tells her manager that she doesn't feel she needs to attend various training sessions at company expense or utilize su
Virty [35]

Answer:

The right answer is, False.

Explanation:

Nowadays companies seek to improve the attitudes, knowledge and skills of their employees, through training activities so that everyone works synergistically in achieving the objectives of organizations.

3 0
1 year ago
Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2012 dollars) 2014 17,521.7 16,899.
saul85 [17]

Answer:

= 5.18%

2.88%

True

Explanation:

Nominal GDP is GDP calculated using current year prices

Change in nominal GDP from 2017 to 2018 = 20,494.1 /  19,485.4 - 1 = 0.0518 = 5.18%

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation

The percentage change in real GDP from 2014 to 2015 = 17,386.7 / 16,899.8 - 1 = 0.0288 = 2.88%

percentage change in real GDP from 2015 to 2016 = 17,659.2 / 17,386.7 - 1 = 1.57%

The percentage change in real GDP from 2014 to 2015 was higher than the percentage change in real GDP from 2015 to 2016

5 0
2 years ago
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