Economics Answers

Organisation that had adopted Big Data analytics have gained a significant market advantage…

a.

False.

b.

True.

Big data is described as information sets so large and varied that they are beyond the capability of traditional data processing…

a.

False.

b.

True.

One of the difficulties with Big Data is the ability to convert it to useful knowledge…

a.

True.

b.

False.

ata is likely to change on a regular basis and needs to be continually updated.

a.

True.

b.

False.

There is a risk that valuable time and money will be spent measuring relationships and information that has no value for the organisation…

a.

False.

b.

True

Businesses are experiencing a rapid growth in the volume of information…

a.

True.

b.

False.

Big Data can involve other can involve organisational data (both internal and external), which is often unstructured…

a.

True.

b.

False.

Data-mining software uses statistical algorithms to discover correlations and patterns to create useful information…

a.

False.

b.

True.

Data that inputs into Big Data systems can include…

a.

Satellite imagery.

b.

Social network traffic.

c.

Web server logs.

d.

All the above.

1.      Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%.

a.      How much of the$100 Million will banks choose to lend out initially? (2mks)

b.      What will happen to banks liabilities when the money that is lent out is spent and the recipients of it deposit it in their bank accounts? (2mks)

c.      How much of these latest deposits will be lent out by the banks? (2mks)

d.      By how much will total deposits eventually have risen, assuming that none of the additional liquidity is held outside the banking sector? (2mks)

e.      How much of these extra total deposits are matched by (i) liquid assets; (ii) illiquid assets? (2mks)

f.       What is the size of the bank multiplier? (3ms)

g. If one-half of any additional liquidity is held outside the banking sector, by how much less will deposits have risen compared with (d) above? (5mks)