Mbank has deposit liabilities of $300 million. it only keeps the minimum cash reserves required by law of 20%. its annual costs (wages, rent, utilities, etc.) are $5 million. what is mbank’s profit under the following circumstances: (a) (2pts) it charges 4% annual interest on its loans and pays 1% annual interest on its deposits. (b) (2 pts) it charges 4% annual interest on its loans, but in order to meet the market competition it raises its interest rate on deposits to 2%. (c) (2 pts) the interest rates are as in part (a) above, but due to uncertain economic conditions, mbank decides to hold an additional 5% in excess reserves.

happiness is the correct luck

explanation:

fractionally backed paper money

fiat money

paper money

metallic money

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.