Suppose You Found $5,000 Hidden in Your Closet and Deposited

question 85

Multiple Choice

Suppose you found $5,000 hidden in your closet and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.

• A)​$500; $5,000
• B)​$4,500; $5,000
• C)​$4,500; $45,000
• D)​$4,500; $50,000

Recognize and interpret buying signals during a sales process.

Explain the negotiation process in sales and how to achieve a fair deal.

Grasp the importance of responding adequately to objections and the inability to close sales.

Compare and contrast different closing techniques such as assumptive close, summary-of-benefits close, and standing-room-only close.

---

Definitions:

Effective Yield

The total yield on an investment, taking into account all compounding periods, fees, and other factors affecting the actual return.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or loan, not taking into account compounding or fees.

Par

The face value of a bond or security, often used in the context of bonds trading at, above, or below their issued price.

Market Rate

The prevailing interest rate available in the marketplace for similar financial instruments or loans.