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(a) The bank's excess reserves are its actual reserves less required reserves. Actual reserves are given as $450 from its balance sheet. Required reserves are given by the product of the required reserve ratio and demand deposits, i.e., 10% * $5,000 = $500. Thus the excess reserves are equal to $450 - $500 = -$50. This implies that the bank has no excess reserves and even it does not maintain the required reserve ratio.
(b) The bank can lend an additional amount equal to its excess reserves. But since in this case, there are no excess reserves, the bank cannot lend anything.
Let f (?) be the production function associated with a single-output technology, and let Y be the production set. Show that Y satisfies constant returns to scale if and only if f (
The correlation coefficient can take values from -1 to 1. If the correlation coefficient lies in the range (-1,0) then we say that the correlation is negative, on the other hand if
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Accounting system is one prevalent among agencies in voluntary sector. Transactions are registered in journals only when cash is in fact paid out or taken in. The primary virtue of
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1. ABC produces a single product. Material A is added at the start of production and Material B at the end. Conversion is uniform throughout. Inspection before Material B is added.
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