The total assets of a dairy products manufacturing company are calculated. however, a sum of $5 million from the value of the company's property, plant, and equipment assets is not taken into account as the machinery is bound to become unusable after a certain period of time. in the context of balance sheets, the amount of $5 million that is subtracted from the original value of the total assets is called
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Ответ:
d. 20
Explanation:
The Money multiplier is the number that new deposits are multiplied with to find out their total effect on the banking system.
It is calculated by dividing 1 by the required reserve ratio.
Required reserve ratio = 0.5/10
= 5%
Money Multiplier = 1/5%
= 20