Chegg suppose banks keep no excess reserves and no individuals or firms decide to hold more cash during the deposit expansion process. if someone suddenly discovers $50 million in buried treasure, explain what would happen to the money supply if the required reserve ratio is 10 percent.

how would your answer change in the required reserve ratio was 20 percent?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Asituation in which consumers want more of a good or service than producers are willing to make available at a particular price is a shortage

Answerof the company, both internally and externally;