The reserve ratio is the portion of the money of the depositor that should be available in cash in the bank. This amount should only be in the bank and not used for all other purposes. Hence, the balance money can be used for the bank operations, increasing the supply.
In this item, we are given that the reserve ratio is only 5%. This means that, 95% of the money can be used by the bank for its operation. This amount can be calculated by multiplying the amount deposited by the decimal equivalent of 95%. That is,
= ($1000)(0.95)
= $950
Therefore, the money supply will increase by $950.
Answer:
The answer is a. Market value per share is the price at which a stock is bought and sold.
Explanation:
For shares that are listed in the stock exchange, the market value per share is the price of share at which share is currently traded. In other words, this is the fair value of the share and at this price, share can be readily sold or bought.
(b) is not correct because it describes the commitment (usually made by an investment bank) to purchase newly issued shares at predetermined price when those shares are not purchased by other investors in the market.
(c) describes a type of stock rather than the definition of market value per share.
(d) describes Preemptive right rather than the definition of market value per share.
Answer:
C is the correct option
Explanation:
Opportunity cost is a concept of Macroeconomic theory. It is also known as an alternative cost. It is the value of what one gives up to choose something else. In simple terms, we can say that it is the value of the road not taken. In the above question, the value of the activities one had to leave to attend the economics class woul be known as the Opprtunity cost.