Examlex
Suppose the banking system does NOT hold excess reserves and the reserve ratio is 20%.If Sam deposits $500 cash in his chequing account,the banking system can increase the money supply by an additional _____:
Quick Ratio
A measure of liquidity similar to the current ratio except for exclusion of inventories. It equals cash plus receivables divided by current liabilities.
Industry Average
A statistical measure that represents the central tendency or typical value of a set of figures in a particular industry, often used for benchmarking.
Insolvency
The state in which an individual or entity cannot meet its financial obligations as debts become due.
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity of a business.
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