Answered: You are been asked by your younger…

You are been asked by your younger sister to explain what banking is, write brief description of the activities of a bank explaining how they generate income.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter15: The Federal Reserve System And Monetary Policy

Section: Chapter Questions

Problem 6AA

See similar textbooks

Related questions

Q: 3. In the following diagram, the price of Good Y has decreased. What type of good is Good Y? Sood Y…

A: A normal Good is that good which have inverse relationship between price of the given good and the…

Q: Which of the following statement is true? The present value of a given payment is lower the further…

A: According to the present value conecpt, the today's value of $1 is worth more than the future $1.…

Q: How the reverse repo rate helps in correcting excess demand in an economy?

A: Central bank refers to the apex institution in the banking sector that manages the other financial…

Q: In the 1950s, Walt Disney began to plan the development of a theme park that would eventually become…

A: Development: Development means an increase in the size or pace of an economy so that more products…

Q: Hi. I'm a little confused on how the short run supply curve of a price taking firm is determined. Do…

A: In the perfectly competitive market, the firm is price taker only. It can not influence the market…

Q: In a stadium there is only one seller of bratwursts (sausages). The inverse demand tion is given by:…

A: Monopoly market is characterized by presence of single firm. Single firm is considered as price…

Q: Distinguish between ‘shut down’ and industry exit by firms and explain the circumstances determining…

A: A shutdown point is a level of operation at which a business decides to temporarily — or, in some…

Q: Explain the circumstances under which the Marginal Product of Labour diminishes. What are the…

A: Since multiple questions have been posted, we will answer the first question for you. If you want…

Q: The notion of outsourcing has been highly controversial for several decades.Why?

A: Individuals are named jobless on the off chance that they don't have some work, have effectively…

Q: In 2012 the nominal value for household spending on food and beverages was equal to $17593m and in…

A: Here since we have data only for the household consumption for food and beverages. Hence it would be…

Q: The Logan Well Services Group is considering two sites for storage and recovery of reclaimed water.…

A: The benefit-cost ratio (BCR) is a sign represents the connection between the relative costs and…

Q: 3. How much is P5,000 worth in five years in a continuous compounded amount? 4. Considering the Item…

A: Given information Present sum= 5000 Time=5 years Interest is compounded continuously.

Q: Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the…

A: The Average Cost is the per unit cost of production acquired by separating the total cost (TC) by…

Q: If $P can purchase 1 basket of goods and services, then ---------------------- Value of money is…

A: Value for money refers to a utility derived or calculated from every purchase or every sum of money…

Q: Firms Markets for Goods and Services Markets for Factors of Production Based on this model,…

A: The circular-flow diagram is a graphical representation of the flows of goods/services and money…

Q: ollowing the end of WW2 (1945) , the US economy entered a golden age. The American economy boomed in…

A: In the aggregate demand- aggregate supply model, equilibrium occurs where the aggregate demand curve…

Q: implication

A: According to Keynes, the consumption of individual and society are determined by the current income…

Q: A rise in the money supply will raise both the equilibrium national income and the equilibrium price…

A: The amount of money circulating in the economy is called the money supply. An increase in money…

Q: Why can't an economy generate its own aggregate demand when needed?

A: A system for creating, distributing, and consuming goods is referred to as an economy. The producers…

Q: please help answer this question, this regards an Economic Theory of Law

A: The Wagner Act was created to establish the majority of Specialists' legal ability to form wankens…

Q: discuss why do national income and personal income differ, what happened during economics growth

A: Personal income is the total of all actual earnings received by an individual or household during a…

Q: If we assume that labor is the only variable input, the slope of the short run total product curve

A: Marginal Product of labour is defined as the increase in total production of the company when one…

Q: How is it necessary for a nation with a fixed exchange rate and open financial markets to renounce…

A: The rate about which one currency will be swapped for another is known as the exchange rate. The…

Q: The government has introduced an excise duty of 10 percent on mealie meal. This essentially means…

A: Tax is the income for government.

Q: In the past, some counties and countries have imposed taxes on sugar, saturated fats, and food made…

A: As the milk chocolates includes huge sugar content which can lead to some health related issues. And…

Q: Consider the following macroeconomic model: Y=C+ Io + Go C=a+b(Y-T) T=d+tY Where the endogenous…

A: Disclaimer: providing the solution to the first three sub-parts.

Q: Joe has moved to a small town with only one golf course. His demand curve is P = 120 – 2Q where Q is…

A: Two-part pricing is another example of price discrimination which contains a membership fee and a…

Q: Comple and use the following table of information to answer the question below. e replicate the…

A: Cost formulas Total cost is the sum of total fixed cost and total variable cost. i.e., TC = TFC +…

Q: Changes in real values can only be caused by quantity changes. Select one: True False

A: The real value does not include price effects or variables are adjusted for inflation to reach the…

Q: roducuvay explainis____ of the unferences in per d. Two thirds e all

A: *Answer: Explanation: Total factor productivity (TFP) is a measure of economic efficiency and…

Q: II. Graphing: Using the Total Production Frontier below, make a TPF graph with proper point and axis…

A: Total Product refers to the total quantity of output produced by a firm by utilizing the available…

Q: Explain the differences in the types of negotiation, negotiation tactics, and bargaining behaviors…

A: Negotiation refers to the dialogue between two or more people or parties to reach the desired…

Q: A firm's short-run demand curve for a resource is also the firm's: average cost curve of the…

A: Marginal Revenue Product : In simple terms, the marginal revenue product of a resource is the…

Q: The excess supply caused by a binding price floor set above the equilibrium price will be greatest…

Q: For each of the following scenarios involving the U.S. government, determine the primary function of…

A: Since you have asked multiple questions, and according to policy, we can solve only 1 question, and…

Q: Please explain the methodology behind the Consumer Price Index (CPI) calculation and assess the…

A: Every country on the planet engages in a variety of economic activities, including trade,…

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: An economic profit is the contrast/difference between the revenue got from the offer of a result and…

Q: 1. Explain the factors that causes demand-pull inflation. 2. Explain the factors that causes…

A: Inflation refers to the rise in general price level over period of time . here general price level…

Q: 5

A: The movement of a person or people from one nation, locality, place of residence, etc., to settle in…

Q: What does human capital theory assume?

A: Human capital refers to the creation of economic value as a result of how humans behave as a…

Q: Consider the lottery that assigns a probability r of obtaining a level of consumption CH and a…

A: Risk premium is the amount which a consumer is willing to pay in order to avoid a risky event. RP =…

Q: Which feature is associated with the sustainability of a rural society?a. planting cover crops when…

A: The term "sustainability" primarily refers to the present generation's responsible use of resources…

Q: 3. Efficiency in the produ Suppose Germany produces only two goods: wheat and cars. The following…

A: A production possibilities frontier (PPF) depicts the combination of two goods that a nation can…

Q: Three ducks, Huey, Dewey, and Louie, are squawking about how big of a pond they should purchase…

A: Given, Three Ducks : Huey, Dewey and LouisThe demand curve of Huey anf Louie are :Huey :…

Q: Graphing: Using the Production Possibilities Schedule above, make a Production Possibilities…

A: Combination Unit of bracelets Units of rings A 0 205 P 10 200 L 20 194 I 30 187 E 40 179…

Q: 1.2.2 Health insurance is tied to holding a job 1.2.3 A more infectious and deadly COVID-19 variant…

A: The phrase "reservation wage" describes the lowest salary someone would accept for a given job or…

Q: why are goods and services in a country counted in GDP at market value; what are the disavantages of…

A: Answer: One of the most crucial criteria for evaluating a nation's productivity and economic…

Q: Explain what is meant by ‘The Tragedy of the Commons’. What are its implications and what policies…

A: Tragedy of commons is a problem associated with common goods. These goods are non-excludable but are…

Q: A homeowner does not recognize as taxable income the annual appreciation in the home's fair market…

A: Taxable income is the one on which taxes are imposed.

Q: The following table shows the export price index for New Zealand’s merchandise exports to Australia…

A: Export Price Index is defined as the index which calculates the price of specific goods and services…

Question

100%

You are been asked by your younger sister to explain what banking is, write brief description of the activities of a bank explaining how they generate income.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It has made loans of 500. Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the banks net worth.
Should banks have to hold 100 of their deposits? Why or why not?
What is the primary function of an investment bank? A) Providing loans to individuals B) Facilitating the buying and selling of securities C) Offering retail banking services D) Regulating financial markets
What is a bank? What are its functions in our economy?
Which of the following is true about banks? Select one: a. The interest rate banks charge when they lend is the same they pay for the deposits they receive. b. Banks are financial institutions through which savers can directly provide funds to borrowers. c. Typically, banks receive few but big deposits, which they then use to make many small loans. d. Through the checking accounts they facilitate, banks provide a medium of exchange.
What is bank,types of banks ,functions of bank and how banks perform their functions & explain products of banks?
Explain how banks create money.
Explain in detail the types of banks?