under managed floating exchange rates, other things equal, a central bank would initiate

Answers

Answer 1

Under managed floating exchange rates, other things being equal, a central bank would initiate interventions in the foreign exchange market to influence the value of its currency.

In a system of managed floating exchange rates, the value of a currency is determined by market forces but is subject to occasional interventions by the central bank. When other factors remain constant and the central bank wants to influence the value of its currency, it would initiate interventions in the foreign exchange market. The central bank can buy or sell its own currency in the market, increasing or decreasing its supply to influence its value relative to other currencies.

If the central bank wants to prevent excessive appreciation of its currency, it may sell its currency, increasing its supply and thereby lowering its value. This intervention aims to maintain export competitiveness and support the domestic economy. Conversely, if the central bank wants to prevent excessive depreciation of its currency, it may buy its currency, reducing its supply and raising its value. This intervention aims to stabilize prices and prevent inflationary pressures.

The decision to initiate interventions in the foreign exchange market depends on various factors, such as economic conditions, policy objectives, and exchange rate trends. Central banks carefully assess the impact of their actions on the overall economy and the potential risks associated with currency fluctuations. Through managed floating exchange rates, central banks can exercise a certain level of control over their currency's value while allowing market forces to play a role in its determination.

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Related Questions

If china’s economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if its current gdp is $12 trillion?.

Answers

If china’s economy maintains a 7% annual growth rate over the next 20 years, $48 trillion its economy be in 20 years if its current GDP is $12 trillion.

What GDP means?

GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation over a specified time period (say a quarter or a year). It totals all the output produced inside a nation's boundaries.

How GDP is calculated?

GDP equals private consumption plus gross domestic product plus government investment plus government spending plus (exports – imports). or as a mathematical formula: GDP = C + I + G + (X – M) The national statistical office of the nation typically calculates GDP using the international standard.

What do you mean by GDP deflator?

The GDP price deflator tracks variations in the costs of all products and services produced in a country. Comparing the levels of real economic activity from one year to the next is made easier for economists by using the GDP price deflator.

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A business analyzes what competitors are charging for products.

Answers

When a business analyzes what the competitors are charging for their products, it is known as the process of marketing info management.

What is the significance of business competitors?

A business competitor can be referred to or considered as an organization that deals in the same product that is offered for sale by other enterprises in the same market.

It is important for a business to keep an eye on the acts of its competitors, as it helps them in keeping themselves updated with marketing info management.

Therefore, the significance regarding the business competitors has been aforementioned.

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write any three features of our social culture​

Answers

Explanation:

Culture has five basic characteristics: It is learned, shared, based on symbols, integrated, and dynamic. All cultures share these basic features.

Answer:

The features of our social culture are :

i) It brings understanding amongst the people of different backgrounds.

ii ) Culture includes attitudes , rituals , traditions, norms , values and knowledge

iii) Culture is learned as well as acquire from the ancestors.

What factors made the difference between success and failure of the cisco erp project?

Answers

The success and failure of the Cisco ERP project depended on the resources that the top management and board of Cisco dedicated to the project. If monetary resources were few then the success of planning and implementation would have affected the success.

Cisco Systems, Inc. (commonly known as Cisco) is a US-based multinational technology company headquartered in San Jose, California. Cisco designs manufacture and markets network hardware, software, communications equipment, and other high-tech services and products.

Definition: A product is an item offered for sale. Products are services or items. It can be in physical or virtual or cyber forms. All products are made at a price and sold at a price. The price that can be calculated depends on the market, quality, marketing, and target segment. A product is an item or service that you sell to satisfy a customer's needs or desires. they are physical or virtual. Physical products include durable goods (such as cars, furniture, and computers) and consumables (such as food and beverages).

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During some year a country had exports of $50 billion, imports of $70 billion, and domestic investment of $100 billion. what was its saving during the year?

Answers

Savings = Investment +Net exports ( where Net export = Export - Imports)

             = 100 + 50-70

             = $80 billion

Imports are goods and services purchased from the rest of the world by residents of a country rather than domestically produced items. Exports are goods and services produced in the United States but sold to customers in other countries.

Total imports and total exports are critical components in calculating a country's GDP. They are categorized as "Net Exports." Net exports are calculated by subtracting the total value of a country's exports from the total value of its imports. A trade surplus is indicated by a positive net exports figure.

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Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy

Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.

Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:

Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:

What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?

Answers

1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.  

Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.

2. The real return on my investment in Amazon.com Inc was a net loss of  7.12% or $667.60.

3. The company I selected to buy its stock three years ago was Amazon.com Inc.

4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.

5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.

6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.

What is the stock investment?

Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.

The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).

Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)

Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)

Tax (10%) = $1,024.40 ($10,244 x 10%)

Inflation (3%) = $307.32 ($10,244 x 3%)

Administration fee on sales (2%) = $204.88 ($10,244 x 2%)

Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)

Loss on returns = $667.60 ($8,707.40 - $9,375)

Loss percentage = 7.12% ($667.60/$9,375 x 100)

Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.

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Compare the product life cycle to the business cycle. Include at least one similarity and one difference.

Answers

Explanation:

A product life cycle refers to the life of a product in the market, and the processes that it goes through in relation to the business costs, as well as the sales measures. The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. One major similarity between the product and project life cycles is that both are comprised of different and several phases or stages. These phases are very vital because they ensure that the requirements of the cycles are provided for and that both the goals and the objectives of the cycles are achieved. For instance, while some of the phases of the product cycle include the growth and maturation stages, those of the project life cycle include the birth and closure phases. The aim of integrating the phases in the life cycles is to ensure that there is proper coordination of the activities that take place in the cycles. The two cycles are closely related to each other. In some cases, a product may consist of more than one project, where the projects act as the subset of the product. This makes it necessary for the bigger product view to be put into consideration when it comes to project management. The product and project life cycles face various challenges which demand the adoption of strategies in the cycle phases, with the aim of ensuring that the cycles give the desired results.

Petra is paying her ten employees for 40 hours a week, 52 weeks each year. in 2007, petra spent on wages for her employees each week. when the minimum wage rose in 2009, petra had to increase her annual budget for wages from 2008 by .

Answers

In 2007, Petra spent $2,340 on wages for her employees each week, and Petra increased her annual wage budget from 2008 by $14,560.

Calculation of wages

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Petra owns a coffee shop. She has ten employees. In 2007, she paid her employees minimum wage ($5.85 an hour). In 2008, the minimum wage increased to $6.55 an hour. In 2009, the minimum wage increased to $7.25 an hour. Petra is paying her ten employees for 40 hours a week 52 weeks each year. In 2007 Petra spent___ on wages for her employees each week. When the minimum wage rose in 2009, Petra had to increase her annual budget for wage from 2008 by___

We can now proceed as follows:

Weekly wage spent Petra in 2007 = 2007 minimum wage per hour * Number of employees * Number of hours per week = $5.85 * 10 * 40 = $2,340

Amount of increase in minimum wage per hour between 2008 and 2009 = $7.25 - 6.55 = $0.7/hour

Petra’s increase in annual budget for wages in 2009 = Amount of increase in minimum wage per hour between 2008 and 2009 * Number of employees * Number of hours per week * Number of weeks = $0.7 * 10 * 40 * 52 = $14,560

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Answer:

Petra is paying her ten employees for 40 hours a week, 52 weeks each year.

In 2007, Petra spent $2,340 on wages for her employees each week.

when the minimum wage rose in 2009, Petra had to increase her annual budget for wages from 2008 by $14,560

Explanation:

got it right

suppose improvement occurs in the technology of producing forklifts but not in the technology of producing automobiles. draw the new production possibilities curve. instructions: use your mouse to click on either one or both of the endpoints of the ppc and drag inward or outward as necessary.

Answers

Suppose improvement occurs in the technology of producing forklifts but not in the technology of producing automobiles. We draw the new production possibilities curve by moving the 30 points to the right tick.

Technology, or as it is sometimes referred to, the modification and manipulation of the human environment, is the application of scientific knowledge to the practical goals of human life. Almost every aspect of modern life is impacted by technology, including productivity, socialization, food and healthcare access, and transportation efficiency and safety. The power of the internet has facilitated the emergence of international communities and made it easier to exchange information and resources. So many people are benefiting from technology in various ways. Collaboration between nations, cultures, and companies has never been simpler. Platforms and communities make this possible and facilitate easy global connection. This is significant because to overcome the current obstacles, we must work together.

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How much less would Maria have to spend to have $100 per month available for saving?

Answers

The savings instrument that could help Maria reach her goal are a regular saving accounts and a money market account with a $100 minimum deposit. The correct options are b and d.

What is money market account?

The term money market account refers to an interest-bearing account at a bank or credit union. Sometimes referred to as money market deposit accounts, money market accounts have some features that are not found in other types of accounts. Most money market accounts pay a higher interest rate than regular savings accounts and often include check-writing and debit card privileges. They may also come with restrictions that make them less flexible than a regular checking account.

They are important for calculating tangible net worth.

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Maria deposits her paycheck each week in a checking account. She plans to buy a car in the next year, so she decides to start saving $100 each month to pay for it. She does not want to have to remember to make that deposit each month. What savings instruments could help Maria reach her goal? Check all that apply. Series I savings bon Series EE savings bonds a regular savings account a 24-month certificate of deposit a money market account with a $100 minimum deposit

ve durel evaluation of your work.
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Activity
Lydia is a senior in high school. She works 20 hours a week at a popular clothing store. She is trying to save as much
money as possible for her college tuition. However, she has to buy a dress for prom, pay her car insurance, and get a
birthday gift for her sister. This week she received a $400 paycheck. She wants to deposit the entire check in her
savings account for her college tuition, but she stops herself. She decides instead to put $100 in the bank, spend $200
for her prom dress, pay $80 for her car insurance, and buy her little sister a $20 birthday gift. While shopping, she
sees a doll worth $21, which she thinks her sister will absolutely love. As a result, she decided to buy the more
expensive doll and spend less on her dress.

Did Lydia make an all-or-nothing or a marginal decision while spending her money? ​

Answers

Answer:

marginal decision

Explanation:

Marginal decision involves spending a little more or a little less than what has already been planned for based on the benefit to be gotten. If the marginal benefit exceeds the marginal cost, then the choice is a good choice. Marginal decision are made by using marginal analysis, that is comparing the cost and benefits of spending a little more or a little less.

In this scenario, she spends $1 more to buy her sister a doll because she thinks her sister would love it. The marginal cost in this case is $1. As a result on spending more on the gift, she spends less on her dress.

Price of Video Game Quantity Supplied

of Video Games Quantity Demanded

of Video Games
$50
0
500
$75
50
325
$100
200
200
$150
250
100
$200
400
0
In the supply-and-demand schedule shown above, at the equilibrium price, the quantity supplied is _____ and the quantity demanded is _____.

0, 500
200, 200
400, 0

Answers

The equilibrium price in the supply-and-demand schedule indicated above is $100.

For $100, the amount of video games delivered and the quantity of video games sought are equal to 200 = 200.

The equilibrium price is equal to the number of goods that sellers are willing and able to sell (200 - 200 = 0).

What does the term "equilibrium pricing level" mean?

An equilibrium price, also known as a market-clearing price, is the consumer cost given to a product or service at a point where supply and demand are equal or nearly equal. The producer or seller can sell as many units as they want, and the buyer can buy as many as they want. In economics, the equilibrium price is found by squaring the supply and demand functions and solving for the price. The point at where the supply and demand curves cross is known as the equilibrium point. The point indicates the best price and quantity. It is computed by solving equations for the quantities sought and provided (a - bP = x + yP).

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PIz help, Im confused.

PIz help, Im confused.
PIz help, Im confused.
PIz help, Im confused.

Answers

Base on the personal history provided, Megan's hypothetical credit score is 470. Option A

How do we find Megan's hypothetical credit score?

To Find Megans credit score, we have to look at her personal information against the hypothetical credit score provided.

Megan is 28 which has 20 point score

2 years at her residence has 20  point score

8 years auto age  has 0 score point

No car payment history has 72 score points

$500 house payment has 48 score point

A checking account has 8 point

No finance reference has 60 points

5 major credit cards has 60 points

15% ratio of debt to income has 80 points

Never declare bankruptcy has a score of 120

Lets sum the scores; 20+20+0+72+48+8+60+60+80+120 = 488

The closest value in the list of options is 470 and therefore her hypothetical credit score is 470.

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the luminous matter in the universe accounts for what percent of the total mass of the universe?

Answers

The luminous matter in the universe accounts for a relatively small percent of the total mass of the universe.

Estimates suggest that luminous matter, also known as baryonic matter, makes up only about 5% of the total mass of the universe. This includes stars, galaxies, and other visible matter that emits or reflects light. The remaining 95% of the universe is composed of dark matter and dark energy, which are yet to be fully understood.

Dark matter, comprising about 27% of the universe's total mass, is a form of matter that does not interact with light and is detected indirectly through its gravitational effects. Dark energy, accounting for approximately 68% of the universe's total mass, is an enigmatic force that is believed to be responsible for the accelerated expansion of the universe.

While luminous matter is observable and familiar to us, it represents only a small fraction of the vast cosmic landscape, with the majority of the universe's mass remaining mysterious and elusive.

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Please help immediately!

Need help with now/ASAP! https://brainly.com/question/25630020

Answers

Answer:

You can create the time line below or submydgxg PowerPoint document containing thtime line. If your tim

Explanation:

You can create the time line below or submit a separate Word or nt containing the time line. If your tim

suppose that the following set of securities are available in the market: in absence of arbitrage, what must the value of the risk-free rate be?

Answers

If the set of securities is available on the market and arbitrage is not possible, the risk-free rate value must be 8.68%.

 Weight of Stock A       SD of Stock B/(SD of A+ SD of B)    0.83 25/(5+25)

 Rate of return  8.68% =8%*0.83+12%* (1-0.83)

The hypothetical rate of return on a risk-free investment is known as the risk-free rate of return. The risk-free rate is the interest that an investor would anticipate from a completely risk-free investment over a given time frame.

You can determine the so-called "actual" risk-free rate by deducting the current inflation rate from the yield on the Treasury bond that corresponds to the length of your investment.

Theoretically, an investor anticipates a return of no less than the risk-free rate on any investment because they will not take on further risk until the prospective return is higher. Negative interest rates can make it more difficult to determine a proxy for the risk-free rate of return in a specific situation, which must take into account the investor's home market.

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What is this form used for?
SAVINGS WITHDRAWAL
FIFTH BANK
TOWNVILLE, ST
101 S. 1ST STREET
ACCOUNT NUMBER
DATE
$
NAME
SIGNATURE
1:50117135:
02
2010 Going
to withdraw money from a savings account
to deposit money in a savings account
to order checks
open a savings account

Answers

Answer:

to withdraw money from a savings account

Explanation:

The document appears to be a  savings withdrawal form. The words Withdrawal are clearly visible, implying it is used when making withdrawals.

To withdraw is the removal or get money from a savings or checking account. Customers use the withdrawal form when they need to get money from their accounts. They need to fill in the amount required in words and figures and signs in the appropriate place. The customer then hands over the form to a teller.

I need helping figuring out how the financial statements would be adjusted after something like this occurs. Would someone be able to explain how I would figure that out please?
Here is what I have written so far:
Both the income statement and the balance sheet will need to updated following the theft of the two TVs. The inventory balance shown in the balance sheet will need to be reduced by $800, as it was two $400 TVs that were stolen. Then they will need to credit that amount to the inventory account. On the income statement, because it was a loss of inventory, this would reflect on the statement as an expense.
One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.
One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last time they were in the warehouse was a week earlier, and they hadn’t noticed anything amiss.
As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two customer service specialists, and the owner worked.
Knowing that you are familiar with accounting principles, they asked for your help in figuring out how to prevent this in the future.
If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.

Answers

In this scenario, the financial statements that would need to be adjusted are the **income statement** and the **balance sheet**.

To correct the financial statements, we need to account for the missing inventory, which in this case is two HD televisions worth $400 each. Let's break down the adjustments for each statement:

1. **Balance Sheet**: The inventory balance on the balance sheet needs to be reduced by the value of the stolen televisions. In this case, it would be a decrease of $800 ($400 * 2). This adjustment is made by debiting the **Cost of Goods Sold (COGS)** account, which is an expense account on the income statement, and crediting the **Inventory** account. This reduction in inventory will be reflected in the balance sheet.

2. **Income Statement**: Since the televisions were stolen, it represents a loss of inventory, which should be recognized as an expense on the income statement. The expense should be recorded under the **Cost of Goods Sold (COGS)** section, specifically as an **inventory theft expense**. The amount recorded should match the decrease in inventory value, which in this case is $800.

By making these adjustments, the financial statements will accurately reflect the impact of the inventory theft on the company's financial position and performance. It's important to consult with an accountant or financial professional to ensure proper recording and presentation of these adjustments in accordance with accounting principles and regulations.

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What are the 3 key elements for MRP?

Answers

The three key elements for Material Requirements Planning (MRP) are: Bill of Materials (BOM), Master Production Schedule (MPS), and Inventory Records.

\BOM is a list of all raw materials and components needed to produce a finished product, MPS outlines the production schedule to meet customer demand, and Inventory Records show the available inventory levels.

By combining these three elements, MRP helps manufacturers determine when and how much raw material and components to order, ensuring that production schedules are met and inventory levels are optimized.

MRP systems use these key elements to calculate net requirements for each component, helping manufacturers to plan and manage their production processes efficiently.

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5. You purchase your daily
coffee at the chemist’s coffeehouse and have a choice of two cups
with different specific heat capacity. Which cup will you choose,
the cup with a low specific or the cu

Answers

You would choose the cup with a low specific heat capacity.

Specific heat capacity refers to the amount of heat energy required to raise the temperature of a substance by a certain amount. In the context of coffee cups, a cup with a low specific heat capacity means that it heats up or cools down quickly in response to changes in temperature.

When you purchase your daily coffee, you likely want to enjoy it at an optimal temperature for a longer period. By choosing a cup with a low specific heat capacity, it will absorb less heat from the coffee, allowing it to stay hot for a longer time. The cup will also cool down faster when exposed to the surrounding environment, preventing your coffee from becoming lukewarm too quickly.

On the other hand, a cup with a high specific heat capacity would absorb more heat from the coffee, causing it to cool down rapidly. This would result in your coffee becoming cold faster, making it less enjoyable to drink.

Therefore, opting for a cup with a low specific heat capacity would be more advantageous as it helps maintain the desired temperature of your coffee for a longer duration.

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If GDP is $20 trillion, how many years will it take for GDP to increase to $40 trillion if annual growth is 10 percent? Instructions: Enter your answer as a whole number. years.

Answers

It will take approximately 7 years for GDP to increase to $40 trillion with an annual growth rate of 10%.

The formula to calculate the future value of GDP is:

FV = PV x (1 + r)^n

FV is the future value of GDP

PV is the present value of GDP

r is the annual growth rate as a decimal

n is the number of years

Substituting the given values, we get:

40 trillion = 20 trillion x (1 + 0.1)^n

Simplifying the equation, we get:

2 = (1.1)^n

Taking the logarithm of both sides, we get:

n = log(2) / log(1.1)

n ≈ 7.27

Therefore, it will take approximately 7 years for GDP to increase to $40 trillion if annual growth is 10 percent.

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विरा
HE
QUESTION ONE / 10
Aaron wants to open a savings account. Which account will grow his money the most?
B. Account 2: Interest rate 1%, interest compounded daily.
A. Account 1: Interest rate 2%, Interest compounded daily.
D. Account 4: Interest rato 1%, interest compounded
annually.
C. Account 3: Interest rato 2%, interest compounded
monthly

Answers

Answer:

B. Account 2: Interest rate 1%, interest compounded daily

Explanation:

because since he want to be taking money from there regularly , he will need a rate of 2% and a interest compounded daily


What is an example of a common part of a company's brand that would be represented in television
commercials?

Answers

Answer:

logos, product, company's name, :DDD and endorsers

FOOD;

1.how to reduced food?
2.how to reused food?
3.how to recycled food?


WATER;
1.how to reduced water?
2.how to reused water?
3.how to recycled water?


please ​

Answers

Godisgood04 all the time in

Complete the following sentence. Remember to spell correctly.
The market is in ___
until the price of goods reflects equal supply and demand.

Answers

The market is in Disequilibrium until the prices of goods reflects equal supply and demand.

When deciding on what to wear each day, most people use the decision-making process.
Т
F

Answers

Answer:

False

Explanation:

The decision-making process is a complex process that requires the user to go through seven in-depth steps before coming to a conclusion. This would be used in a business setting by an employee such as a CEO before making important decisions such as cutting a product line or adding a new department. Deciding what to wear each day is a decision, but does not require the in-depth thought process and research that is included in the decision-making process.

state law of diminishing returns​

Answers

Answer:

see below

Explanation:

The law of diminishing marginal returns indicates that in every production process, adding one more input while holding the others constant will result in the overall decrease in output.

According to this law,  adding one more production unit diminishes the marginal returns, and the average production cost increases. Marginal returns refer to the benefits associated with the production of an extra unit.  

The gain derived from the use of more input while keeping all other factor constant decreases as production increases. For example, employing more workers while all other variables remain constant will result in reduced labor productivity.

Question 2 (1 point)
Huda wants to buy soda. A 12-pack costs $9.50. She knows that with the local sales
tax of $2.00, the total should be $11.50. However, when she gets to the checkout,
the total is now $13.00. Which type of tax is Huda MOST likely paying that would
explain the extra $1.50?
estate
excise
inheritance
O income
Question 3 (1 point)

Answers

Excise, it's an extra tax which makes you pay more

Answer:

$2:00,o income $ 1:50 huda soda most type that tax 3)1 point )

What type of economy is the South African economy?

Answers

Answer:South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.

Explanation:

Answer:

South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.

Explanation:

No Explanations

Identify each statement as either true or false. In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. Banks typically loan out a portion of customer deposits. Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs.

Answers

Answer:

false

true

true

true

false

Explanation:

Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.

If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out

Fractional banking is practiced in the US

Bank run is when depositors withdraw their monies from the bank due to fear of the bank failing.

The Federal Deposit  Insurance Corporation (FDIC) was established after the great depression. Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers. In the case a bank fails, customers are assured that they would not lose their monies deposited

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