How do banks make money from the loans they give?

Answers

Answer 1

The annual interest that banks charge on the money they borrow from consumers. The banks lend out the borrowed cash to individuals while earning interest each year.

Why do banks create money when they make loans?

Their source of income is what they refer to as the spread, which is the difference between the interest rates they pay on deposits and the interest rates they get on loans they make. They receive interest payments on the securities they own.

People who lend money to banks are paid interest every year. The banks gain annual interest for lending out the borrowed money to individuals. The interest on that loan should be greater than the interest on the borrowing.

Since all modern money is simply credit, banks are able to literally generate money out of thin air by issuing loans. This misunderstanding might have its roots in the ostensibly miraculous simultaneous creation of entries on both the liability and asset sides of a bank's balance sheet whenever it initiates a new loan.

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Related Questions

Why are some producers forced to sell their products at the prevailing market price?
A. price takers find market analysis is too costly
B. they are very small players in the overall market
C. high degree of similarity to competitor's products
D. they can increase output without affecting quality

Answers

Some producers are forced to sell their products at the prevailing market price because of  High degree of similarity to competitor's products.

What is Market price ?

Market price is the price that buyers and sellers in a free market exchange agree to for a particular asset or good. It is determined by the forces of supply and demand. Market prices are influenced by a wide variety of factors, including the availability of the asset, the economic conditions of the region, and the level of competition.The market price is different from the intrinsic value of an asset, which is determined by analyzing the asset’s fundamentals, such as its earnings and cash flow.

What is Cash Flow?

The net amount of cash and cash equivalents transferred into and out of a business is referred to as "cash flow." It is the difference between a company's cash inflows and outflows. Positive cash flow indicates that a company's liquid assets are growing, allowing it to settle debts, reinvest in the company, return money to shareholders, pay expenses, and provide a buffer against future financial challenges. Negative cash flow indicates that a company is struggling to generate enough cash to grow or pay its debts.

Therfore the correct option is C. high degree of similarity to competitor's products

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what do you mean by medical personnel?​

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Answer:

Hello! Medical personnel is basically someone you may may hear or see in a hospital,for example a doctor would be one of them, However your family,you,and other patients are not a medical personnel unless they are with you and at the moment actually working in the hospital or urgent care.

Explanation:

Medical personnel means a physician, a physician assistant, nurse practitioner or other health care personnel licensed to at least the level of a registered nurse or licensed practi- cal nurse.

Personnel dedicated solely to medical purposes, whether on a permanent or temporary basis, such as the search for, collection of, transportation of, diagnosis or treatment of the wounded, sick, and shipwrecked, or disease prevention, or the administration or operation of medical units or medical transports.


The term also refers to individuals assigned to medical units, which are structures such as hospitals and other similar units dedicated to the aforementioned medical purposes.

            It also includes military and civilian medical personnel of a conflicting party, as well as medical personnel of international relief organizations and civil defense organizations and as well as Red Cross or Red Crescent personnel.

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Marketing is not just for businesses selling their products and services, but also for government to promote their jurisdictions as prime locations for business. True False

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Marketing is used by governments as well as enterprises to advertise their jurisdictions as desirable areas for doing business. (TRUE)

What is Business, Really?

An organization that conducts business, industry, or professional activities is referred to as a business. Coordination of some sort of economic production is the aim of a business (of goods or services). Businesses can be profit-oriented businesses or charitable groups promoting a good cause. Businesses range in size and reach from modest local startups to vast international giants.

Business also refers to a person's activities and endeavors that generate and market goods and services for a profit.

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What are 3 facts about mixed economy?

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Three of the following characteristics of a market economy exist in a mixed economy. The first line of defense is private property. Additionally, it permits price to be determined by the free market and the principles of supply and demand. The third justification is that it is motivated by people's own self-interest.

What characteristics set a market economy ?

Supply and demand, as opposed to governmental interference, control the economy in a system known as a "market economy." In an economy with a fully open market, every resource is individually owned. Independent of the government, individuals decide how to distribute these resources. In the purest sense, there is no such thing as "free enterprise" or "market economy." closer ties with the US

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How are individuals and economies similar?

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Individuals and economies are similar in that they both involve the exchange of goods and services for money. Both individuals and economies must manage their resources and make decisions about how to allocate them in order to maximize their benefit.

What is Individuals and economies?

Individuals and economies refer to the collective economic activities of people in a certain region or area. It encompasses the entire economic output of a region or area, including both production and consumption of goods and services. Individuals and economies are interrelated, as the economic activities of individuals can impact the economy as a whole. For example, if an individual purchases a product or service, it helps to stimulate the economy by creating jobs, increasing wages, and increasing the demand for goods and services. This, in turn, helps to increase the overall economic growth of the area. Additionally, the economic activities of individuals can also influence the economic policies of governments and other organizations.

Both individuals and economies must also manage risk and uncertainty in order to remain successful. Finally, both individuals and economies must be able to adapt to changing conditions in order to remain competitive.

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If investment spending increases and all other levels of spending remain constant, then aggregate:
a. supply increases
b. supply decreases
c. demand increases
d. demand decreases

Answers

c. demand increases. If investment spending increases and all other levels of spending remain constant, then aggregate demand increases.

This is because investment spending is a component of aggregate demand, which represents the total amount of goods and services that households, firms, and the government want to buy in the economy. An increase in investment spending will lead to an increase in the production of goods and services, which will in turn lead to an increase in the demand for those goods and services. As a result, prices may rise and firms will want to increase their production to meet the increased demand. This leads to a situation of increased economic activity, which is associated with an increase in aggregate demand.

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Which of the following is NOT an assumption of the economic order quantity model shown below?
Select one:
a. The only variable costs are setup cost and holding (or carrying) cost.
b. Quantity discounts are not possible.
c. Production and use can occur simultaneously.
d. Demand is known, constant, and independent.
e. Lead time is known and constant.

Answers

Production and use can occur simultaneously is NOT an assumption of the economic order quantity model.

The optimal order amount a business should place in order to reduce its inventory costs, such as holding costs, shortage costs, and order charges, is known as the economic order quantity (EOQ). Inventory management, which is the control of the ordering, holding, and use of a company's inventory, is required to use EOQ. Inventory management is entrusted with figuring out how many units a business should add to its stock with each batch order in order to lower the overall cost of its stock.

The EOQ model aims to make sure that the appropriate amount of inventory is ordered per batch so that a company does not have to place orders too frequently or have an excess of inventory on hand.

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before a customer buys penny stock, the sec generally requires that broker deal must do which of the following: [A] approve each penny stock trade in advance of the purchase
[B] provide the customer with a disclosure document the explains the risks involved
[C] provide current market quotes, if available
*[D] All of the above

Answers

The SEC generally requires that broker-dealers must do all of the options [A], [B], and [C] before a customer buys penny stock.  Thus option D is the correct answer

Approving each penny stock trade in advance of the purchase allows the broker-dealer to ensure that the customer understands the risks and is making an informed decision.

Providing the customer with a disclosure document that explains the risks involved ensures that the customer is aware of the potential for high volatility, lack of liquidity, and potential fraud. Providing current market quotes, if available, gives the customer a sense of the current value of the penny stock, which can help them make a more informed decision.

In summary, All of the options [A], [B], and [C] are required by SEC to ensure customer protection and informed decision-making before buying penny stock.

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why did india put barrier o foreign trade and investment afetr independance , why was the policy changed in 1991

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This was sought to shield domestic producers from competition from abroad. to safeguard this same Indian economy form foreign espionage in sectors that could hinder the country's intended economic expansion.

What is the straightforward meaning of economy?

Whether an entity is a country or a small town, an economy includes everything that is activities connected to the supply, procurement, and trade of products and services in that entity. Every economy is different. Each is shaped by the resources, laws, cultures, histories, and geographies that are unique to it.

Which are some instances of economy?

The traditional economy, which uses a country's traditions and history to direct the distribution of goods, is a well-known illustration of an economy. The main pillars of traditional economies are agriculture, hunting, and hunting.

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Who makes the decisions in a mixed market economy?

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In a mixed market economy, the decisions are made by both the government and the private sector.

What is the government?

The government is an organization of individuals who have been elected to represent and serve the needs of the public. It is responsible for creating and enforcing laws, providing services and programs to the public, and promoting the general welfare of the population. Governments may be local, state, national, or international, and they can be divided into various branches, such as legislative, executive, and judicial. Governmental responsibilities can include public education, infrastructure, health care, public safety, environmental regulation, taxation, and economic development. Governments are essential to a functioning society, as they are responsible for protecting the rights and freedoms of citizens and providing a system of laws and regulations to ensure fairness and justice.

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Which of the following statements regarding non periodic distributions from an annuity contract prior to the annuity start date, issued after August 13, 1982, is true ?
A) A nonperiodic distribution is prorated equally between a tax-free return of principal and a taxable interest payment.
B) A nonperiodic distribution is taxed under the exclusion ratio rules.
C) A nonperiodic distribution is taxed first as a taxable interest payment until the interest payments are completely exhausted, and then as a tax-free return of principal.
D) A nonperiodic distribution is first considered a tax-free return of principal and then a taxable interest payment.

Answers

A non periodic distribution is first considered a tax-free return of principal and then a taxable interest payment  is true.

In nonperiodic distributions, the withholding tax is only applied to taxable payouts that are received in cash. The withholding requirement is meant to deter workers from taking early distributions from their retirement accounts. Instead, periodic disbursements would be made monthly or yearly.

Unless the beneficiary chooses to have no taxes withheld, nonperiodic distributions sent directly to an employee may be subject to a 10% early withdrawal penalty and any unpaid withholding tax.

Individual retirement account (IRA) transfers or rollovers, systematic withdrawals, and mandatory minimum distributions are not considered nonperiodic distributions (RMDs).

For some qualified expenses, such as buying a first home, a nonperiodic distribution may also be taken out without incurring any penalties.

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How would you describe the concept of scarcity ?

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It is the fundamental concept in economics, and it can refer to a shortage of any kind of resource, including capital, labor, commodities, land, and technology.

Scarcity is the limited availability of a commodity, good, service, or resource.When something is scarce, it means that there is not enough of it to satisfy all its potential uses and that its availability is limited in some way.

Scarcity forces us to make choices, which can often lead to increased efficiency in the use of resources.

Scarcity is the fundamental economic problem of having limited resources to meet infinite wants and needs. It is a concept that applies to all resources, including time, money, raw materials, energy, land, and labor.

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You can afford $300 per month for car loan payments. For a 36-month loan at 4.5% stated annual interest, with the first payment one month from now, how much can you borrow

Answers

$10,100 can be borrowed for a 36-month.

What is Loan ?

Another party receives money in exchange for later repayment of the loan's principal or value. In many cases, the borrower must pay additional fees like interest or finance charges on top of the principal amount because the lender increased the principal value by adding those items.

Loans can be given as an open-ended line of credit with a cap of up to a particular amount or for a predefined, one-time sum. There are alternatives for commercial and personal financing in addition to secured and unsecured loans. Loans should be repaid at time.

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A high fashion designer brings his upcoming fall collection to Nordstrom department store for customers to preview. This is an example of which type of event

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A high fashion designer that brings his upcoming fall collection is the example of trunk show. It is because the creator or fashion designer bring her own product to the customer in a venue.

In business, A trunk show generally can be defined as an event in which vendors present merchandise directly to customers or also store personnel at another venue such as a hotel room or also  retail location. Trunk show  give a big impact through the company's income, it is because trunk show allows store personnel to preview and/or purchase merchandise before it is made available to the public.

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Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,400,000 of 5-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $7,127,643. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.


Required:

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1

Answers

On July 1, 20Y1, a debit of $7,127,643 was made to cash, a credit of $7,400,000 was made to Bonds Payable, and a credit of $272,357 was made to Discount on Bonds Payable to record the cash proceeds from the issuance of the bonds.

On July 1, 20Y1, to record the cash proceeds from the issuance of the bonds, the following entry would be made:

Debit: Cash $7,127,643Credit: Bonds Payable $7,400,000Credit: Discount on Bonds Payable $272,357

The debit entry to cash represents the amount of cash received from the sale of the bonds. The credit entry to Bonds Payable represents the increase in the company's liability for the bond debt. The credit entry to Discount on Bonds Payable represents the difference between the face value of the bonds and the cash proceeds received, which is the bond discount.

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What may have caused the Incas to be defeated so easily by the Spanish?

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The Spanish had many advantages that allowed them to easily defeat the Incas. These advantages included superior weapons, advanced military tactics, and the introduction of new diseases to the Incas that caused many of them to get fall ill and then die.

The Spanish also had large numbers of soldiers, which allowed them to overwhelm the Incas. Ultimately, the Incas were not united and their leadership was weakened by civil wars and the lack of a unified strategy against the Spanish. All these factors combined to create a situation where the Incas were unable to adequately defend themselves against the Spanish.

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Corporate social responsibility is Question 1 options: an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. principles, values, and norms that primarily guide individual and group behavior in the world of business. the institutionalization of business ethics into all levels of business decision making. a business's responsibility to manufacture products that function properly.

Answers

Corporate social responsibility is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

Corporate social responsibility is a strategy that encourages businesses to work in ways that benefit society and the environment rather than harming them. CSR aids in enhancing a number of societal facets as well as enhancing the reputation of businesses.

Environmental responsibility, ethical obligation, philanthropic responsibility, and economic responsibility are the four basic categories of CSR. Companies can, however, also take into account various CSR initiatives, including diversity and inclusion, management, well-being, and employee.

Companies should give their CSR marketing strategies a lot of thought. Such programs can have a significant positive impact on the neighborhood and offer numerous chances for shareholders and business owners to gain new clients and advance society.

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Deck Co. had 120,000 shares of common stock outstanding at January 1. On July 1, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares of nonconvertible cumulative preferred stock. What is the number of shares that Deck should use to calculate basic earnings per share

Answers

The number of shares that Deck should use to calculate basic earnings per share will be 140,000. Hence, option (a) will be considered as correct.

Give a brief account on preferred stock.

When a firm pays dividends or distributes assets to shareholders, preferred shares provide their owners a preferential claim. However, they do not have any advantage in terms of corporate governance, and preferred shareholders usually do not have a say in corporate elections. Companies may differ in the specifics of their preferred shareholders' economic preference. In certain instances, the preference merely specifies that any cash available for distributions throughout the year must first be used to pay the promised payments to preferred shareholders before any common dividends can be paid. In other circumstances, the preference is cumulative, requiring that any missing payments to preferred shareholders be made up before common stockholders are permitted to receive anything.

To solve the question :

Number of outstanding common shares :

= (120,000 × 12/12) + (40,000 × 6/12)

= 140,000

Hence, option (a) will be considered correct

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The complete question is mentioned below :

Deck Co. had 120,000 shares of common stock outstanding at January 1. On July 1, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares of nonconvertible cumulative preferred stock. What is the number of shares that Deck should use to calculate basic earnings per share?

a. 140,000

b. 150,000

c. 160,000

d. 170,000

The difference between fiscal policy and monetary policy is that Group of answer choices fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods fiscal policy is macroeconomic policy and monetary policy is microeconomic policy monetary policy is macroeconomic policy and fiscal policy is microeconomic policy

Answers

Out of the alternatives provided above, it can be stated that 'monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing' clearly indicates the differences between both the policies. Therefore, option B holds true.

The monetary policies are much similar and a lot different from the fiscal policies at the same time. Both are related to the management of monies in some way or the other. The former is a macroeconomic phenomenon, whereas, the latter is to look after the taxation schemes in the economy.

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What are the bad things about automation?

Answers

The negative impact of the automation is there are possibility that workers will become slaves to automated machines. If it is happen, so that the privacy of humans will be invaded by vast computer data networks and will compromise data security.

In this era, Automation generally can be defined as a wide range of technologies that reduce human intervention in processes. The key process of automation is by predetermining decision criteria, related actions, subprocess relationships, as well as embodying those predeterminations in machines. In the other side, automation has a biggest impact through the production process, but in other hand, it is also has a biggest negative impact.

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Quetion Six: The following account appear in the ledger of Alico Corporation after the book are cloed at December 31, 2019. Common Stock, $2 par value, 700,000 hare authorized, 400,000 hare iued …………………………………………………………………………$800,000 Paid-in Capital in Exce of Par Value—Common Stock …………………. 650,000 Preferred Stock, $100 par value, 8%, 10,000 hare authorized; 2,000 hare iued …………………………………………………………………………. 200,000 Retained Earning ……………………………………………………………. 900,000 Treaury Stock (10,000 common hare) ………………………………………85,000 Paid-in Capital in Exce of Par Value—Preferred Stock ……………………. 310,000 Required: Prepare the tockholder' equity ection at December 31, 2019

Answers

Assets = Liabilities + Stockholders' Equity is the formula for a balance sheet. The shareholders' equity formula is as follows: paid-in capital plus retained earnings minus treasury stock. Stock and cash dividends are not included in the financial statements.

The shareholders’ equity portion of the balance sheet reports the worth of the stockholders. Divided into two components, paid-in capital (stockholder investments) and retained earnings (profits generated by the corporation.)

The first five accounts listed above add up to the total paid-in capital, which includes the Preferred Stock account, the Common Stock account, the Paid-in Capital in Excess of Par account, the Paid-in Capital from the Sale of Treasury Stock account, and the Paid-in Capital from Excess of Par account.

All issued shares are considered common stock, even those that have been repurchased by the company. The value of shareholders should not include treasury stock because it is not held by individual investors. Stockholders' equity is calculated by taking the value of issued shares less the value of shares held in treasury.

Therefore, Stockholder Equity Section = (Common Stock + Paid-in Capital in Excess of Par Value—Common Stock + Preferred Stock + Retained Earning + Paid-in Capital in Excess of Par Value—Preferred Stock) - Treasury Stock

Stockholder Equity = 800,000$ + 650,000$ + 200,000$ + 900,000$ + 310,000$ - 85,000$ = 2,775,000$

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The right question is:

Question Six: The following account appeared in the ledger of Alico Corporation after the book are closed on December 31, 2019. Common Stock, $2 par value, 700,000 shares authorized, 400,000 shares issued …………………………………………………………….......................................……………$800,000

Paid-in Capital in Excess of Par Value—Common Stock ……...............650,000

Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 2,000 shares issued ………………………………………………………............…………………. 200,000 Retained Earning ………………………………….....................…………………………. 900,000

Treasury Stock (10,000 common shares) ……………………………………......…85,000 Paid-in Capital in Excess of Par Value—Preferred Stock …………..........310,000

Required: Prepare the stockholder's equity section on December 31, 2019

What is an example of short-term borrowing?

Answers

Examples of short-term borrowing include taking out a bank loan, using a credit card, or utilizing a line of credit.

Short-term borrowing is a method of financing that involves borrowing money for a short period of time, typically up to a year.

It is often used to cover operational costs, purchase inventory, or fund other expenses that are expected to be repaid within a relatively short timeframe.

Short-term borrowing can be used to finance investments, cover operational costs, or manage cash flow.

It is typically easier to obtain than long-term financing, as the repayment period is shorter and the lender is taking on less risk. However, short-term borrowing often carries higher interest rates than long-term loans.

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You created a new strategy for lawncare services that involves assessing lawn health, applying the correct herbicides and pesticides and other necessary solutions to quickly bring a lawn back to health. What are three things you will need to consider regarding the mass delivery of your service? (Choose thee)

A) Developing the product website and social media campaign

B) Establishing quality control measures and accountability
C) Setting up your test marketing strategy

D) Training employees with the knowledge to consistently deliver the service

E) creating an effective demonstration of your service for potential customers.

F) finding a source of materials to support your service.

Answers

Explanation:

A ) Step 1: Define Your Social Media Campaign Goals

Step 2: Identify the Social Media Channels You’ll Use

Step 3: Plan Your Social Media Campaign Strategies

Step 4: Choose the Metrics You Want To Monitor

Step 5: Create a Social Media Content Calendar

Step 6: Design Your Marketing Assets Using Free Online Tools

Step 7: Schedule Your Content Using Social Media Management Tools

Step 8: Manage Your Campaign

Step 9: Analyze the Results

B) Set your quality standards. ...

Decide which quality standards to focus on. ...

Create operational processes to deliver quality. ...

Review your results. ...

Get feedback. ...

Make improvements.

C ) Create a Sample Product/Service Prototype. ...

Determine Your First Testing Audience. ...

Establish Your Testing Method. ...

Ask the Right Questions. ...

Listen with an Open Mind. ...

Analyze Feedback, Tweak Your Product/Service.

D ) Training gives everyone a great understanding of their responsibilities and the knowledge and skills they need to do that job. This will enhance their confidence which can also improve their overall performance.

E )Customize your demo. Every customer is unique, so every demo should be uniquely matched to that customer. ...

Tell the customer's story. ...

Rehearse, rehearse, rehearse. ...

Test everything beforehand. ...

After the demo, close the deal.

F )Check the domain name. ...

Take a closer look at the source. ...

Search for additional information to back up what you've found. ...

Use certain sources only to jump-start additional research.

Monopolists are price makers. Why is this not the case for firms in a competitive market? Which are the Correct Answer(s) 1. Other sellers sell products that are similar if not identical. 2. A competitive firm's product only makes up a small portion of the market’s total product. 3. Price controls prevent firms in a competitive market from pricing their products as they think best. 4.Even if one or more of their competitors goes out of business, other competitors will appear.

Answers

The correct option of this question is 2. A competitive firm's product only makes up a small portion of the market’s total product.

In a monopolistic market, there is just a single firm that directs the cost and supply levels of goods and services.

An entirely cutthroat market is made out of many firms, where nobody firm has market control.

In reality, no market is simply monopolistic or entirely aggressive.

In the middle of between a monopolistic market and wonderful rivalry lies monopolistic contest or defective rivalry.

In monopolistic rivalry, there are numerous makers and buyers in the marketplace, and all organizations just have a level of market control.

In a monopolistic market, firms are cost creators since they control the costs of goods and services. In this sort of market, costs are for the most part high for goods and services since firms have complete control of the market. Firms have absolute market share, which makes troublesome section and leave points. Since obstructions to section in a monopolistic market are high, firms that figure out how to enter the market are still frequently overwhelmed by one greater firm.

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farmer bill sella potatoes at the farmers marketFarmer Bill sold potatoes at the farm market. He sold a quarter to the first person, 4/9 of what was left to the second person, and the third buyer bought 4/5 of what was left and the last 10 lb. How many pounds of potatoes farmer Bill sold

Answers

The farmer Bill sold 120 pounds of potatoes at the farm market. He made his last transaction of 50 pounds when he sold "4/5 of what he has left, plus the remaining 10 pounds."

What does the term "farmers market" mean?

Farmers' markets allow farmers to interact personally with their customers, give consumers access to locally grown, farm-fresh fruit, and foster consumer loyalty to the farmers who raise the product.

With x pounds of potatoes, he begins.

After selling a quarter of them, he is left with (3/4)x pounds.

He then sells 4/9 of what is remaining in his possession, leaving him with 5/9. He has 5/9 of (3/4)x pounds remaining, or (5/12)x pounds.

He made his last transaction of 50 pounds when he sold "4/5 of what he has left, plus the remaining 10 pounds."

(5/12).x = 50

x= 120

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Experts are particularly concerned about four strategic metal resources that are important for the u. S. Economy and military strength, and that must be imported. What percentage does the u. S. Import? *

Answers

Experts are especially concerned about four strategic metal resources that are critical to the United States' economy and military strength and U.S imports 90%.

What are the four strategic metal resources?Because of their importance to the US economy, national security, and the emerging green economy, copper, nickel, cobalt, and platinum group metals are considered strategic.Strategic minerals are commodities critical to national defense whose supply during war is entirely or partially dependent on sources outside the United States. Because these resources would be difficult to obtain, strict conservation and distribution controls are required.Gold, silver, tin, copper, lead, zinc, iron, nickel, chromium, and aluminum are examples of metallic resources. Sand, gravel, gypsum, halite, Uranium, and dimension stone are examples of nonmetallic resources. A mineral resource is defined as a volume of rock that is rich in one or more useful materials.

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Within the context of the culture of poverty, which of the following most clearly describes why individuals who are part of this culture become trapped in a downward economic spiral ?
A) Unemployment causes poverty; a lack of willpower and motivation can, in turn, cause unemployment in people who do not have a strong work ethic.
B) Individuals lack the finances to pay rent, so they eventually do not have an address to use in filling out job applications.
C) Characteristics of poverty (joblessness and lack of financial independence) can, in turn, contribute to attributes (feelings of powerlessness and low self-esteem) that sustain poverty.
D) Poverty is passed on from generation to generation; individuals learn at an early age that there is no way to escape living in poverty.

Answers

Characteristics of poverty (joblessness and lack of financial independence) can, in turn, contribute to attributes (feelings of powerlessness and low self-esteem) that sustain poverty. Option C is correct.

Poverty in our culture means about not having enough money to meet basic needs including food, clothing, and shelter. However, poverty is more, much more than just not having enough money. The World Bank Organization describes poverty that Poverty is hunger along with a lack of shelter.

Poverty leads to no education and unemployment opportunities, which further contributes to income inequality and perpetuates the cyclical effects of poverty. Unmet social needs, environmental factors, and barriers to accessing health care contribute to worse health outcomes for people with lower incomes.

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If the reserve ratio is 100-percent, then a new deposit of $1000 into a bank account O a. eventually increases the money supply by $1000. O b. leaves the size of the money supply unchanged. O c. eventually decreases the size of the money supply by $1000, O d. eventually increases the money supply by $2000.

Answers

If the reserve ratio is 100-percent, then a new deposit of $1000 into a bank account leaves the size of the money supply unchanged.

The amount of reservable liabilities that commercial banks must keep onto rather than lend out or invest is known as the reserve ratio. The central bank of the nation, in this case the Federal Reserve in the United States, sets this criterion.

The total amount of money and other liquid assets in an economy on the measurement date is known as the money supply. Both cash and deposits that can be accessed virtually as easily as cash are roughly included in the money supply.

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A principal residence is bought for $190,000. A new porch is added, costing $9,000. Five years later the home sells for $261,000, and the closing costs are $21,000. What is the homeowner's capital gain

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The homeowner's capital gains $41,000. A principal residence is bought for $190,000. A new porch is added, costing $9,000. Five years later the home sells for $261,000, and the closing costs are $21,000.

Capital gain is the earnings one earns at the sale of an asset like stocks, bonds or actual estate. It outcomes in capital advantage while the selling charge of an asset exceeds its purchase price. it's far the distinction among the selling price (better) and cost charge (lower) of the asset.

it is a tax levied on an man or woman's and. however, movable non-public assets along with fixtures, garb, and so forth. are excluded from this tax. kinds of capital profits tax which might be levied on lengthy-term and quick-term gains begin from 10% and 15%, respectively.

The time period capital benefit refers to the growth within the cost of a capital asset while it's far offered. placed clearly, a capital benefit happens when you sell an asset for more than what you at the beginning paid for it.

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All of the following are advantages of a company that has a dominant market share EXCEPT:
a. It can decrease its marketing expense without losing any market share.
b. It moves faster down the experience curve.
c. It has a production cost advantage due to higher production volume.
d. It is able to be the industry price leader.
e. It can create barriers to entry.

Answers

All of the following are advantages of a company that has a dominant market share EXCEPT It has a production cost advantage due to higher production volume.

What is Production Cost?

All direct and indirect expenses incurred by a company when producing a good or rendering service are referred to as production costs. labour costs, raw materials, consumable manufacturing supplies, general overhead, and other costs can all be included in production costs.

Expenses associated with producing a good or offering a service that brings in money for a business are referred to as production costs.

Labor, raw materials, consumable manufacturing supplies, general overhead, and other costs can all be included in production costs.

The sum of all direct material and labour costs as well as all production overhead costs can be used to calculate the overall cost of the product.

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