Money and Banking Suppose Jackson bank has excess reserves of   $4,000 and checkable deposits of $80,000 .  If the reserve requirement is 10%, 1. what  is the size of the bank’s reserves? Show your calculation 2.If Jackson bank were to lend out their excess reserves, what would be the maximum amount the banking system could expand the money supply in the economy?  Show your calculations. 3.If people started to distrust banks and decided to keep their money in cash in cookie jars and under mattresses,  how would this behavior affect the economy as a whole?  Assume that people would still be spending the amount on goods and services.    

Bonus Point (2pts): Base on your Five Forces Analysis, what score do you give the industry? Is the this industry attractive or unattractive?

Categorize the statement as a Driving Force or Key Success Factor

Why is pricing alone not considered a sustainable business strategy?

As customer expectations evolve, which of the following strategies would best help a differentiation-focused company like Oura remain competitive?

A company follows a differentiation strategy but fails to justify its premium pricing. What is the likely outcome?

A budget hotel chain focuses on providing the lowest prices in the industry. However, customer reviews frequently mention issues with cleanliness and unfriendly service. Occupancy rates have started to decline despite their competitive pricing. What is the most likely cause of the decline in performance?

How can the manufacturer respond to these changing customer preferences while maintaining its competitive position?

Match each scenario to the corresponding caveat (Parity Conditions, Evolution of Customer Expectations, or Evolution of Competition).

Identify one driving force for at least four categories of the STEEPG framework.  Be specific about the driving force and state why it’s appropriate for the category you chose.