Meditorian Banking Statistics The Monetary Policy of Meditor Is Determined by the Meditorian

question 167

Multiple Choice

Meditorian Banking Statistics
The monetary policy of Meditor is determined by the Meditorian Central Bank. The local currency is the medit. Meditorian banks collectively hold 100 million medits of required reserves, 25 million medits of excess reserves, 250 million medits of Meditorian Treasury Bonds, and their customers hold 1,000 million medits of deposits. Meditorians prefer to use only demand deposits and so all currency is on deposit at the bank.
-Refer to Meditorian Banking Statistics.Suppose that the Central Bank of Meditor changes the reserve requirement ratio to 2.5%.Suppose also that both the required reserve ratio and the percentage of deposits held as excess reserves stay the same.By how much would the money supply of Meditor change?

• A)625 million medits
• B)1,250 million medits
• C)2,500 million medits
• D)None of the above is correct.

Recognize the impact of social and human concerns on productivity.

Identify McGregor’s Theory X and Theory Y and their significance.

Understand the criticism and limitations of the Hawthorne studies.

Understand the rating systems of bonds and their implications on investment risk and return.

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Definitions:

Time And A Half

Compensation rate that is 1.5 times the employee's regular hourly rate, typically paid for overtime work.

Health Insurance

An insurance policy that covers the cost of medical and surgical treatments for the policyholder.

Biweekly

Occurring every two weeks; often used to describe payroll or reporting periods.

Employer's Annual Contribution

The total amount an employer contributes to their employees' benefits, pensions, or other compensation plans over one year.