Use the Following to Answer Questions

question 134

Multiple Choice

Use the following to answer questions:
The reserve requirement is 10% and Jack withdraws $5000 travel money from his chequable deposit.Assume that banks do not hold any excess reserves and that the public holds no currency,only chequable bank deposits.
-(Scenario: Money Supply Changes) Refer to Scenario: Money Supply Changes.After the withdrawal reserves _____,and chequable deposits _____ by $5000.

• A) decrease by $5000;decrease
• B) decrease by $5000;increase
• C) increase by $5000;decrease
• D) increase by $500;increase

Understand the process and applications of rounding numerical answers.

Apply calculator use for approximation and simplification of expressions.

Simplify radical expressions, including square roots and higher-order roots.

Apply the concepts of square and cubed roots in solving geometric problems.

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Definitions:

Operating Expenses

The costs associated with running the day-to-day operations of a business, such as rent, utilities, and salaries.

Gross Profit

The difference between net sales and the cost of goods sold, indicating the efficiency of a company's production process.

Gross Sales

The total sales revenue of a company without any deductions for returns, allowances, or discounts.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.