The Cost of a Sweater Is $30

question 163

Multiple Choice

The cost of a sweater is $30. If the retailer wants a rate of mark-up on selling price of 50%, what is the selling price?

• A) $45
• B) $60
• C) $75
• D) $40
• E) $50

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Definitions:

Excess Reserves

Banks' reserves that exceed the minimum reserve requirements set by central banking authorities, indicating additional liquidity.

Actual Reserves

The total amount of funds that a bank has held in reserve, both required and excess, to meet its liabilities.

Required Reserves

Minimum vault cash or reserves; held at the Federal Reserve District Bank.

Federal Open Market Committee

The branch of the Federal Reserve System that is responsible for setting the direction of monetary policy by buying and selling government securities.