Fractional reserve banking is a term used to describe a banking system whereby a. banks hold reserves equal to only a fraction of their deposit liabilities. b. banks hold reserves equal to a multiple of their deposit liabilities; that is, fractional in this case really means multiple. c. individual banks share a fraction of the total funds deposited in the whole banking system. d. banks are required to quote interest rates in fractions. e. banks are required to maintain a certain fraction of their deposits in the form of checkable deposits, a certain fraction of their deposits in the form of savings deposits, etc.

Answers

Answer 1

Answer:

a. banks hold reserves equal to only a fraction of their deposit liabilities.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;

I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."

III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.

In the banking system, fractional reserve banking describes a situation in which a depository financial institution such as a bank, hold an amount of reserves that is typically equal to only a fraction of its deposit liabilities.


Related Questions

Karen works in a department store. Her coworkers have diverse cultural backgrounds. Which statement shows that Karen understands the importance of multiculturalism?

A.
She values a consistent focus on knowing and completing her daily tasks.
B.
She expects everyone to conform to the same ideas about punctuality.
C.
She appreciates how other perspectives enhance customers’ shopping experiences.
D.
She values completing a job on schedule more than taking time to build relationships.

Answers

A.

She values a consistent focus on knowing and completing her daily tasks.Answer:

Explanation:

She appreciates how other perspectives enhance customers’ shopping experiences

Should copyright laws still be around and protected?

Answers

Answer: yes

Explanation: people can make money off stealing other peoples stuff for eg music etc…

The options strategy of a Bull Put Spread is best described by: Short a call with a strike price higher than the put you are long, on the same underlying asset Long a put with a strike price lower than the put you are short, on the same asset None of the answers Long a put with a strike price higher than the put you are short, on the same underlying asset Short a put with a strike price lower than the call you are long, on the same underlying asset

Answers

Answer:

Long a call with a strike price lower than the call you are short, on the same underlying asset

Explanation:

A bull put spread would involve one short put having a high strike price and 1 long put having a less strike price. It would be created for the net amount collected and the profits arise from increase in the stock price or from time erosion or from both the things

The option strategy that should be best described is that the call would be long having a strike price less than the short call for the similar underlying asset  

Select the best answer in each drop-down list.

Your boss is pointing out your mistakes on your last assignment. You should
.

You and a coworker are having a disagreement about how to handle a project. You should
.

You’ve reached an agreement with a coworker on how to resolve the problem. You should now
.

You need to give constructive criticism to a coworker you don't really like. You should

Answers

Answer:

1

2

3

2

Explanation:

Assume that a local restaurant sells two items, salads and steaks. The restaurant’s only two customers on a particular day are Mr. Carnivore and Ms. Leafygreens. Mr. Carnivore is willing to pay $20 for a steak and $7 for a salad. Ms. Leafygreens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. Assume that the restaurant can provide each of these items at zero marginal cost.

How much additional profit can the restaurant earn by switching to the use of a tying strategy to price salads and steaks rather than pricing these goods separately?
a. $20
b. $12
c. $7
d.$6

Answers

Answer:

d.$6

Explanation:

$6  profit can the restaurant earn by switching to the use of a tying strategy to price salads and steaks rather than pricing these goods separately

What are the goods?

The term Goods are products and resources that satisfy people's needs and wants. A good can be a natural science object, a provided service, or some accumulation of the two. Just about anything is good if it supplies some kind of benefit to consumers.

Using the technique of tying, products are packaged so that the price of the tied (combined) good is more in line with the buyer's overall willingness to pay for the two things.

There are four different types of goods in economics, which can be classified based on excludability and rivalrousness: private goods, public goods, common resources, and club goods.

Therefore, option (D) is correct.

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" The capable manpower is the key factor of any vocation ". Justify this statament with suitable examples .

Answers

Explanation:

The skilled workforce is related to the set of skills and knowledge that an individual has accumulated and that enables him to perform some function with technical knowledge and effectiveness.

The vocation can be understood as a personal inclination for the individual to choose to pursue a profession.

Therefore, vocation and training are related in the sense that when there is a vocation, there must be training for it to be legitimized.

An example of skilled labor can be the workforce in a civil construction, where each resource and technical skills must be employed in order for the final work to take place as planned in a safe and effective manner.

who is the president in Italy​

Answers

Answer:

Sergio Mattarella

Explanation:

Sergio Mattarella OMRI OMCA (Italian pronunciation: [ˈsɛrdʒo mattaˈrɛlla]; born 23 July 1941) is an Italian politician, jurist, academic and lawyer who serves as the 12th and current president of Italy.

Answer:

Sergio Mattarella

Explanation:

Sergio Mattarella OMRI OMCA (Italian pronunciation: [ˈsɛrdʒo mattaˈrɛlla]; born 23 July 1941) is an Italian politician, jurist, academic and lawyer who serves as the 12th and current president of Italy.

Kathryn wants to open a bank account that allows here to perform frequent transactions without being charged a penalty, and she does not want to maintain a minimum balance. What type of bank account should she open?

Answers

Answer:

checking account

Explanation:

A checking account is the bank account in which you can easily access your money. Here the purchase could be made via debit card, cheques, etc. It have no interest or low interest. It contains the service fees but it could be waived off by meeting out the balance or the requirement of the direct deposit

so as per the given situation, the person wants to perform frequent transactions without having any penalty and also she wants to maintain the minimum balance

So checking account should be opened

Custom Motors' account with Widgets, Inc. Has an opening balance of $1,200. They make four purchases totaling $1,500, receive a $400 credit for returned widgets, and make a payment of $2,000. What amount will go into the schedule of accounts for Custom Motors? A. $300 B. $1,500 OC. $1,100 D. $2,000

Answers

Answer:

A. $300

Explanation:

The computation of the amount will go into the schedule of accounts for Custom Motors is shown below;

= Opening balance + purchase made - credit received - payment made

= $1,200 + $1,500 - $400 - $2,000

= $300

Hence, the amount will go into the schedule of accounts for Custom Motors is $300

Therefore the option a is correct

And, the same would be considered

Answer:

A 300

Explanation:

plsss help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answers

Answer:

either B or D

Explanation:

I hope this helps. have a nice day

Either d or b
Have a great day n drink water :))

There are many different ways interviews can be conducted, including face-to-face, distance, group, and performance . Which style would you prefer the most? Why? Which style would you prefer the least? Why? << Read Less

Answers

Personally I would want a face-to-face interview. This is because of many factors. When you are in person you tend to absorb more information about the person. Scientifically speaking, you smell, see, and hear the person you are interviewing or being interviewed by, which proves that you know more about them. You also can interact better because of no physical distance, glitching, and or interruption. The style l least prefer is group interviews. This is because of how many people consist of the group. It could be from 2-1,000,000 and it still would make things harder. Individual interviewing let’s you learn more about the person in particular rather than juggling a entire group of mixed personalities. Add more and maybe put more detail and you have a outstanding essay. Or opinion. Depends on what you wanted. Have a great day!

When monetary authorities set interest rates, what happens to the money supply? Why is money supply important in monetary policy?

Answers

A change in interest rates is one way to make that correspondence happen. A fall in interest rates increases the amount of money people wish to hold, while a rise in interest rates decreases that amount. A change in prices is another way to make the money supply equal the amount demanded.

Answer:

The monetary authorities affect interest rates, which have a direct impact on the money supply in the economy. When the Fed reduces interest rates, industries and businesses borrow more money because their interest expense reduces. They can borrow money at a lower interest rate. When businesses invest money in new projects, they create more jobs, which reduces unemployment. Thus, people earn more money and their disposable income increases, which increases consumer spending. Additionally, because of increased output, there are more products and services on the market for consumers to buy. The increase in demand could drive up the prices of goods and services.

When interest rates are high, businesses have to pay higher interest rates on loans. They borrow less money, which can lead to economic stagnation due to a paucity of new investments and higher unemployment. As unemployment increases, the spending capacity of people decreases, which can further stunt growth because there is less money in the economy. Thus, interest rates have a huge and direct effect on the money supply in the economy.Explanation:

Which of the following statements about industry lifecycle is false? Select one: During the growth stage of the market life cycle, customers are more likely to establish brand loyalty than in other stages. As markets mature, application for patents increase. As markets mature the magnitude of differentiation and cost leadership advantages among competitors decrease. Prices are lower in the growth stage compared to the introduction stage due to economies of scale and learning effects.

Answers

Answer:

During the growth stage of the market life cycle, customers are very likely to establish brand loyalty.

Explanation:

Industry life cycle

This explains the stages or cyles from beginning to end of a product in a market. Some products go through these stages. It consists of four stage which are

1. introduction

2. Growth

3. Maturity

4. Decline

Growth stage

The characteristics of this stage is that product or brand finds its way or gains market acceptance sales start to rise, Competitive reaction will determine life expectancy of the product and sales promotion and distribution play a vital role in this stage. It is the period when sales are increasing at their fastest rate.

The statement above is false due to the fact that In the growth stage of market life cycle, the primary objective is to buildup consumer preferences for the specific brands. A lot of this needs to be considered and put in place such as strong brand recognition, differentiated products, and the financial resources to support a variety of value-chain activities such as marketing and sales, and research and development.

What is the rate of HIV infection in South Africa?

Answers

Answer:

South Africa has the biggest HIV epidemic in the world, with 7.7 million people living with HIV. HIV prevalence among the general population is high at 20.4%

Explanation:

Prevalence is even higher among men who have s ex with men, trans gender women, se x workers and people who inject dru gs.

According to Statistics South Africa's mid-year population assessments for 2018, the total HIV preponderance rate for the country exists at 13.1%. The HIV prevalence rate for all adults aged 15 to 49 exists at 19.0%.

What is HIV infection?

Human immunodeficiency virus infection and obtained immunodeficiency syndrome (HIV/AIDS) exists a spectrum of diseases caused by disease with the human immunodeficiency virus (HIV), a retrovirus. Following initial infection, an individual may not detect any symptoms or may experience a brief duration of influenza-like illness. Typically, this exists followed by a prolonged incubation duration with no symptoms. If the infection advances, it interferes more with the immune system, improving the risk of developing common diseases such as tuberculosis, as well as other opportunistic conditions, and tumors that are otherwise rare in individuals who have a normal immune function. These late symptoms of infection exist directed as cultivated immunodeficiency syndrome (AIDS). This phase exists often also associated with unintended weight loss.

Hence, According to Statistics South Africa's mid-year population assessments for 2018, the total HIV preponderance rate for the country exists at 13.1%. The HIV prevalence rate for all adults aged 15 to 49 exists at 19.0%.
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Ways in which the government can participate in economic activities​

Answers

Answer:

Explanation:

In the United States, the government influences economic activity through two approaches: monetary policy and fiscal policy. Through monetary policy, the government exerts its power to regulate the money supply and level of interest rates. Through fiscal policy, it uses its power to tax and to spend.

Identify which of these habits could result in credit issues.
A. paying for large purchases in cash
B. loaning money to a creditworthy person
C. spending money within a personal budget
D. charging money on multiple credit cards and not making payments

Answers

The answer is D because If you don't pay your credit card bill you will receive increased interest rates and incur damages to your credit score.

Monty loaned his friend Ned $12,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $9,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $9,000 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $3,600 and taxable income of $33,250. During the current year, Ned paid Monty $8,100 in satisfaction of the debt.

Determine Monty's tax treatment for the $8,100 received in the current year.

The nonbusiness bad debt of $9,000 would have been reported as a short-term capital loss , and $_________ would be included in Monty's gross income.

Answers

Answer:

$ 6,600

Explanation:

Monty should [tex]$\text{includ}$[/tex]e up to [tex]$\$ 8,100$[/tex] in the gross account but to an extent of the tax benefit in the previous year. Since the debt is a non-business debt, the amount of [tex]$\$ 9,000$[/tex] would be reported as the short term business capital loss.

In the previous year, Monty had a capital gain of [tex]$\$ 3,600$[/tex] and [tex]$\$33,250$[/tex] as taxable income.

Therefore, $ 3,600 + $ 3,000 = $ 6,600

So $ 6,600 out of $ 9,000 loss produced the tax benefit. Therefore, only [tex]$\$6,000$[/tex] can be included in the gross income of Monty for this year.

The 2 primary decision making styles include intuition and brainstorming. (true or false)

Answers

I know it’s false cuz I done it

Question: Assume that an equity investment that lacks significant influence is sold. Which of the following would be included in the two entries to record the sale? (Select all that apply.) Check All That Apply An update of the Fair value adjustment account An update of the Fair value adjustment account Removal of the related investment account balances Removal of the related investment account balances The total amount of gain or loss that has occurred since the securities were purchased The total amount of gain or loss that has occurred since the securities were purchased The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period

Answers

Answer:

- An update of the Fair value adjustment account

- Removal of the related investment account balances

- The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period

Explanation:

How taII is Hypious The best fn Competitive Player

Answers

Answer:

Hypious is 6'5

Explanation:

hes a fully tatted 6'5 millionaire

Please Help me for real not joking.
It 100% my grade

Answers

Answer:

ur jokin

Explanation:

ddoc is what ut sounds like when i pronounce it

1. Which of the following is a merchant fee?
a. Balance transfer fee
b. Daily batch fee
c. Expedited card replacement fee
d. Returned payment fee

Answers

Answer:

CCCCCCCCCCCCCCCCCC

Explanation:

trust

Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?

Answers

Answer:

D

Explanation:

A. The paper and glue to make the cards B. Hourly workers who assemble and ship the cards C. Packaging and shipping costs D. A paper cutting machine

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

What are the most important skills a public relations specialist must possess?
Analytical skills
Communication skills
Interpersonal skills
Organizational skills

Answers

Communication skills

what are some of the rights that must be protected for a free enterprise system to work?

Answers

Answer:

What are some of the rights that must be protected for a free enterprise system to work? Right to private property, right to exchange property, open opportunity, legal equality, and free contract.

Explanation:

Hope it helps, correct me if I am wrong!

I'm sure about my answer!

Which of the following phrases best describes O*NET?


A financial guide for students

A job search site

A career exploration tool

A college information database

Answers

Answer:

Job search site

Explanation:

....................

Answer:

C.

A career exploration tool

Explanation:

Not sure if this is right, but it's the best guess

Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments.

Answers

Answer:

Note: Question is incomplete, the full question is attached as picture below

                          Journal Entries - Snap Company

Date       Particulars                                   Debit                 Credit

1-Jan       Cash Dr                                   $92,640.00

               Discount on bond payable    $7,360.00  

                       To Bond Payable                                     $100,000.00

               (To record issue of bonds)

30-Jun  Interest expense Dr                   $5,736.00  

                      To Cash ($100,000*10%*6/12)                  $5,000.00

                      To Discount on bond payable                  $736.00

                       (($7,360 - $6,624)

             (To record semiannual interest payment and discount amortization)  

31-Dec    Interest expense Dr                  $5,736.00  

                        To Cash ($100,000*10%*6/12)                  $5,000.00

                        To Discount on bond payable                  $736.00

                         ($6,624 - $5,888)

               (To record semiannual interest payment and discount amortization)

please help (;´༎ຶٹ༎ຶ`)

Answers

What do you need help with?

HELP PLZ NO DOWNLOADS OR LINKS IT WILL BE REPORTED AND ANY UNHELPFUL ANSWERS

Answers

far left = top left

middle left = top right

left middle = bottom right

far left = bottom left

Which of the following pieces of information is NOT commonly collected on a job application?

A. Social media links
B. Contact information
C. Education history
D. Prior work experience

Answers

Answer:

The answer to this question is A

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