Question
Consider a fractional reserve banking system with a
legally required reserve-deposit ratio of m. Suppose that an individual deposits ID dollars in one bank. Then, the economywide change in total depositsSolution
The total change in deposits is equal to ID/m if nobody wants to hold currency and banks lend to their limit. If these two assumptions are relaxed, the increase in deposits is lower. So, in general, the increase in total deposits is at most ID/m.
A motor-cycle covers 125 km with a speed of 60 km/hr. find the speed of the motor-cycle for the next 125 km journey so that the average speed of the who...
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<p><p>If a wheel covers a distance of 880 m in 40 rotations, then the diameter of the wheel is?</p></p>
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The speeds of the three cars are in the ratio of 4: 3: 5. The ratio of respective time taken by these cars to travel the same distance is:
