How does fractional reserve banking increase the money supply in an economy?

A. It allows foreign currencies to be directly substituted for U.S. dollars.

B. It takes money deposited in banks and makes it available as loans.

C. It pressures depositors to withdraw money held in banks for long periods.

D. It requires the government to print money when deposit levels increase​

Answers

Answer 1

Answer:

B. It takes money deposited in banks and makes it available as loans.

Answer 2

It takes money deposited in banks and makes it available as loans does fractional reserve banking increase the money supply in an economy. Hence, option B is correct.

What is reserve banking?

The minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards is known as bank reserves. The bank must store this actual paper money in a vault on the property or in an account with the national bank.

A percentage of 100% indicates that the bank would have all of its customers' money available even if they all sought to withdraw it. Although this is undoubtedly a very secure method of banking, the way things have been put forth thus far, the bank would merely be serving as a safe. It would be incapable of lending any money.

A regional bank of the United States' central banking system, the Federal Reserve System, is known as a Federal Reserve Bank.

Thus, option B is correct.

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Related Questions

Which of the following is NOT an animal rights group?
O People for the Ethical Treatment of Animals (PETA)
O Local animal rights group
O Mercy for Animals
O National Animal Interest Alliance

Answers

Answer:

National Animal Interest Alliance

Explanation:

The National Animal Interest Alliance; (NAIA) is a group or an association of different professionals dedicated to promoting animal welfare. It is a lobby group that seeks to strengthen the human-animal bond and to safeguard the rights of responsible animal owners.

PETA) is People for the Ethical Treatment of Animals ( is an international not-for-profit organization supporting animal rights. It is dedicated to ending the abusive treatment of animals.

Mercy for Animals endeavors to build a society in which all animals are treated with respect and compassion. It aims at ending cruelty to farmed animals and promoting compassionate animal feeding policies.

Answer:

pp

Explanation:

Wilson Wonders's bonds have 12 years remaining to maturity. Interest is paid annu- ally, the bonds have a S1,000 par value, and the coupon interest rate is 10%. The Yield to Maturtty for Annual Payments bonds sell at a price of S850. What is their yield to maturity?

Answers

Answer:

approximate YTM = 12.16%.

Explanation:

the approximate yield to maturity = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

approximate yield to maturity = {100 + [(1,000 - 850) / 12]} / [(1,000 + 850) / 2] = 112.5 / 925 = 0.1216 = 12.16%

An investor that purchases this bond at $850 can expect to earn a 12.16% return.

what are connections between levels of investment and economic growth during the financial crisis of 2008 and 2009

Answers

Answer:

it became better over the years

Explanation:

because after a while what ever was created became life to people in the new wrld and devices became more and more popular

Answer:

When viewed and analyzed together, economic indicators and market

indexes can provide a clear picture of economic growth. The main measure of economic growth is gross domestic product or GDP. If GDP declines, we can safely say that the economy is shrinking. Market data indicates that this change took place during the financial crisis in 2008 and 2009. These changes match trends in employment. As employment dropped, so did the economy's growth. Finally, these changes correspond to market indexes. Prices and market demand dropped as other indicators dropped in turn. Altogether, these indicators and indexes provide a clear pattern for analyzing economic changes.

Explanation:

edg 2020

Which sentences in the passage correctly describe the intermediaries in the distribution process?
A. Brokers purchase goods from various producers and stock them. B. They sell stocks of goods to different retailers according to their requirement.
C. Distributors facilitate the logistics function of storing goods at a suitable location until they can be dispatched. D. They also finance the sale at times, which implies that they provide credit to retailers.

Answers

Answer:

sentence C and D

Explanation:

choose both sentences!!

"Distributors facilitate the logistics function of storing goods at a suitable location until they can be dispatched. They also finance the sale at times, which implies that they provide credit to retailers."

Answer:

Nah Only choose C.

Explanation:

I got it right

how do I surprise my mom with a special guest and get her to make extra dinner for them so that they can eat with us to without telling her that the special guest is coming
HURRY ASAP ​

Answers

Answer:

tell her to make extra!

Explanation:

you can use excuses such as wanting to pack leftovers for a meal the next day, or saying you're extra hungry

C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $30,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial statements on June 30 and December 31. Prepare the journal entry that CSM will make when the note is established.

Answers

Answer:

Journal Entry that CSM will make when the note is established.

Date        Account Title & Explanation    Debit      Credit  

Feb 28,   Note receivable                        $30,000

2018                Cash                                                   $30,000

               (To record issue of note payable)

Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $4,800 with a two-year parts warranty to a customer on August 16, 2017, for $6,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2018, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the repair parts inventory. These are the only repairs required in 2018 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. How much warranty expense does the company report in 2017 for this copier?

Answers

Answer:

the warranty expense does the company report for the year 2017 is  $240

Explanation:

The computation of the warranty expense does the company report for the year 2017 is shown below:

= Dollar sales × given percentage

= $6,000 × 4%

= $240

Hence, the warranty expense does the company report for the year 2017 is  $240

We simply applied the above formula so that the correct value could come

And, the same is to be considered

You buy a new commercial stove for $9,000 and estimate that it will enable you to deliver 20 additional meals per night at an average price of $20. Assuming 25% food cost and no additional costs to using the new stove, how long will it take the stove to pay for itself? a)30 days, b) 90 days, c)180 days, d)365 days

Answers

Answer:

a)30 days

Explanation:

For the stove to repay itself, it will have to reach the break-even point.

the costs associated with the are the cost $9000

The gains from the stove:  20 meals per night at $20.

the cost per mean is 25% of the selling price

=25/100 x 20

=0.25 x20

=$5

The profits per meal = $20 -$5 = $15

Profits for 20 meals = $15 x 20 =$300

Dairy income from the stove is $300

To recover the cost, it will take $9000/$300 days.

=30 days

Answer:

30 days

Explanation:

Which of the following is an example of a company that primarily provides a service

Answers

Answer:

Explanation:

chain retailers' distributors, selling to organizations.

Having which trait will enable you to deal with people in a way that does not offend them? Having will enable you to deal with people in a way that does not offend them.

Answers

Answer:

Interpersonal skills

Explanation:

Interpersonal skills are social traits needed by individual in interacting and communicating with others ( groups, individuals). These skill are very important in maintaining good relationship with others in organization, individuals with good interpersonal skills tend to have a good team work with others. Some of the interpersonal skills are;

✓Listening,

Non verbal communication,

✓decision making,

✓motivation

✓negotiation and others.

It should be noted that having interpersonal skills trait will enable you to deal with people in a way that does not offend them

Answer:

Interpersonal Skills

Explanation:

Interpersonal skills are social traits needed by individual in interacting and communicating with others ( groups, individuals). These skill are very important in maintaining good relationship with others in organization, individuals with good interpersonal skills tend to have a good team work with others. Some of the interpersonal skills are;

✓Listening,

Non verbal communication,

✓decision making,

✓motivation

✓negotiation and others.

It should be noted that having interpersonal skills trait will enable you to deal with people in a way that does not offend them

I need help ASAP!!!!



Answers

Answer:Feet

Explanation:

with what?

I wanna see how quick ya'll answer. Tell me if your answer quickly only because of the points if not the points give me another reason.

Answers

Answer:

thanks for this

Explanation:

because the points <3

Answer:

Hey babe why you not answering? :(

Explanation:

Dealing with pressure is unimportant in today’s business environment. Please select the best answer from the choices provided T F

Answers

Answer:

FALSE BRO

Explanation:

Answer:

false

Explanation:

name 3 of the most famous economists and their significant contributions

Answers

1John Maynard Keynes (1882-1946)
2Friedrich August von Hayek (1899-1992)
3Milton Friedman (1912-2006)

Which of these are commonly found on a partnership agreement?

Answers

Answer:

We need the options

Explanation:

please add options

- Osi

why there's so many wrong answer?

Answers

Answer:

people are dumb tooo

Explanation:

question 3 answer!!!

Answers

Answer:

A

Explanation:

I mean its stating the 4Ps of the marketing mix

HELPPPP
Question 1 of 10
A country imports goods and services worth $700 million and exports goods
and services worth about $500 million. This means that the country has a(n)
A. comparative advantage
B. absolute advantage
C. trade surplus
D. trade deficit
SUBMIT

Answers

Answer:

D. Trade Deficit

Explanation:

Since they pay $700 mil to import goods and earn $5oo mil when they sell those goods, they're technically losing money. Which is what a deficit is

Answer:

D) trade deficit

Explanation:

Economic Growth (sometimes considered similar to GDP) can have a Business Cycle with which of the following?

a)Potential Growth

b)Actual Growth

c)Nominal Growth

d)Real Growth

e)Decline or slowdown

f)Recession or slump

g)Growth or upturn

h)Boom or overheating

i)All of the above

Answers

Answer:

I believe the answer would be E :-)

whos down to run away with me?

Answers

i’m good... why do you want to?

Dixon Sales has seven sales employees that receive weekly paychecks. Each earns $10.00 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% of gross in state income tax, 6% of gross in Social Security tax, 1.5% of gross in Medicare tax, and 0.5% of gross in state disability insurance. Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. If an amount box does not require an entry, leave it blank. Present your answers to the nearest cent. Jan. 19.

Answers

Answer:

following are the solution to this question:

Explanation:

Sale of salaries    [tex](7 \times \$ \ 10.00 \times 40 \ hours)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2800[/tex]  

Federal taxable on wages    [tex](2800 \times 12\%) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 336[/tex]

State taxable on wages      [tex](2800 \times 3\%) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 84[/tex]

Social security tax owing to social security     [tex](2800 \times 6\%) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 168[/tex]

Charge owed on medicare   [tex](2800 \times 1.5\%)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 42[/tex]

State insurance payable with disability    [tex](2800 \times 0.5\% ) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 14[/tex]

Payable Revenue Wages                                                                             2156

Sam's Pizza is considering a new store location. For accounting purposes, fixed operating costs for a store are $245,000 a year, and variable costs are 42 percent of sales. The average pizza sells for $12.50. Compute the annual break-even sales level in number of pizzas for this store location.

Answers

Answer:

33,793   pizzas

Explanation:

The annual break-even sales level for the number of pizzas sold in the location is computed using the break-even sales units formula  below:

break-even sales=fixed costs/contribution margin per pizza

fixed costs=$245,000

contribution margin per pizza=selling price-variable cost

selling price=$12.50

variable cost=selling price*42%

variable cost=$12.50*42%

variable cost=$5.25

contribution margin per pizza=$12.50-$5.25 =$7.25

break-even sales=$245,000/$7.25 = 33,793   pizzas

1. Starbucks has become a phenomenon worldwide, with more than 24,000 stores in more than 60 countries. Sales are great even at relatively high prices for its products. This can perhaps be explained in the United States (and other wealthy markets), but how can Starbucks’ success be explained by its foreign market entry in less developed and emerging markets? 2. Do you expect that the growth of the number of Starbucks stores worldwide will continue into more countries, or do you expect Starbucks to focus on more stores in the foreign markets in which the company already has at least some stores already established? 3. With the CEO and driver of the company—Howard Schultz—stepping down as the company’s unques- tioned leader, do you expect Starbucks to change its foreign market entry strategy in any way?

Answers

Answer:

Following are the solution to this question:

Explanation:

In point 1:

Starbucks is becoming a worldwide premium brand or popularity symbol for its premium pricing, good quality, as well as the most preferred selection of items. It is a symbol of the West's lifestyle and success. Income activity throughout the developing economies has also been rapid, and a new group of loyal consumers is emerging that values that western lifestyle or accomplishment. They would like to show their achievements and profit from their riches, so this creates a substantial demand for luxury high-end brands like star bucks. That is why Star Bucks were beginning and growing in much less and emerging countries.

In point 2:

It is important to note, that it creates a market on its own, in which it can only cater to specific consumers, which is why so many nations are attempting on just this market. It may lead Starbucks the enter the market and also in particular. If you see the case of foreign nations when Starbucks wasn't an opera.

In point 3:

It would not adjust its company strategy, I wouldn't believe it. An ambitious CEO, Schultz helps Starbucks to expand from 11 stores to over 28,000 in 77 countries, during Schultz's leadership. It found the perfect middle of taking different tactics and enabling local forces to form their brand while maintaining one's key business principles.

Its business is achieved in its strategy of global expansion and international revenue growth. We assume that only the current leader will be moving along its route and concentrating on adjusting to regional target audiences. Specific goals, market research, competitive analytics, selective market entry strategies, funding needs, and strategic growth were two key elements of international marketing strategy.

From its growth rate viewpoint, it's indeed clear that Schultz's management was conscious of all of those variables but implemented these properly. UnderSchultz's leadership, that company's inventory has risen 21,000 % since its initial public offering in 1992. Before changing its strategy, the new leadership will consider all these elements.

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 25 percent, 24 percent, 18 percent, 12 percent, 11 percent, 6 percent, and 4 percent.

Answers

Answer:

a. Four-firm concentration ratio is the total sales percentage of the top 4 burger shops in the industry;

= 25% + 24% + 18% + 12%

= 79%

b. Herfindahl index is the sum of the squares of the percentage sales of all the shops in the industry;

= 25² + 24² + 18² + 12² + 11² + 6² + 4²

= ‭1,842‬

c. Top 3 shops combine to form one shop.

= 25 + 24 + 18

= 67%

Four-firm ratio = 67% + 12% + 11% + 6%

= 96%

‭Herfindahl index = 67² + 12² + 11² + 6² + 4²

= ‭4,806‬

Why is it important to learn to be a team player

Answers

Answer:

Businesses thrive when they have a diverse team of people who can contribute individual ideas. Teamwork helps solve problems. Collaboration within a group can help solve difficult problems. Brainstorming is a good opportunity for the team to exchange ideas and come up with creative ways of doing things.

Explanation:

Being a team player is important because otherwise you won’t succeed in life. Learning to input and share ideas is important while also letting others share their thoughts and encouraging them.

answers for question 12!!!!

Answers

Answer:

i think it may be A

Explanation:

100 free hope you do the same

Answers

Tyyyyyyyyysssssmmmmmmmm

Answer:

Explanation:

ma boy

Explain what a trade war is

Answers

Answer: A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.

Explanation:

A deposit of 10,000 offering a 6%annual rate would pay how much interest over a six month period?​

Answers

I hope I don’t get this wrong but I think it’s c

Which of the following is least likely to be a theme in a novel about young people going to war?

Answers

Answer:

What are the options?

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