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2 years ago

Required reserves of banks are a fixed percentage of their.

Business

1 answer:

mylen [45]2 years ago

5 0

Required reserves of banks are a fixed percentage of their fixed deposits.

<h3>What are required reserves?</h3>

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank. Required reserves are used to control the amount of loans a bank can give out. This in turn affects the money supply in the economy.

Reserves are also needed to meet unforeseen circumstances.

To learn more about required reserves, please check: brainly.com/question/12417681

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Suppose that we want to estimate the effects of alcogol consumption (alcohol) on college grade point average (colGPA. In additio

Galina-37 [17]

You should do it yourself because it’s asking for your opinion not mine so in order for it to be correct it needs to come from you

3 0

3 years ago

Economic modelsa. are not useful because they omit many real-world details.b. are usually composed of diagrams and equations.c.

tino4ka555 [31]

Answer:

b. are usually composed of diagrams and equations.

Explanation:

Economic models involve huge number of factors for their study and analysis.

It encompasses the analysis of various situations in an economy. It amounts for significant influence on the changes in market and environment, in which an economy runs.

Since it is complex in nature it involves huge diagrams, metrics, equations.

As with just theory it is not easy to form the understanding of economics. Thus, it involves many pictorial representations in the form of diagrams, graphs, etc:

Therefore, correct statement is

Statement b

6 0

4 years ago

You are comparing two annuities that offer regular payments of $2,500 for five years and pay .75 percent interest per month. You

bixtya [17]

Answer:

E) Annuity B has a smaller present value than annuity A.

Explanation:

The main premise in finances is that the value of money increases in time, e.g. one dollar today is worth more than one dollar tomorrow.

In this case, annuity A is an annuity due (payment is made at the beginning of each period). An annuity due that has the same payments and the same rates, will always have a higher present value than an ordinary annuity.

8 0

3 years ago

Southern Wear stock has an expected return of 15.1 percent. The stock is expected to lose 8 percent in a recession and earn 18 p

kari74 [83]

Answer:

15.26%

Explanation:

Given:

Expected return = 15.1% = 0.151

Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]

Expected earning in a boom = 18% = 0.18

Probabilities of a recession = 2% = 0.02

Probabilities of a normal economy = 87% = 0.87

Probabilities of a boom = 11% = 0.11

Now,

Expected return = ∑ (Probability × Return)

0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy

0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy

0.151 - 0.0182 = 0.87 × Return on normal economy

Return on normal economy = 0.1526

= 0.1526 × 100%

= 15.26%

4 0

3 years ago

The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash

diamong [38]

Answer:

See below

Explanation:

a. Operating income statement for the year ended December 31, 2019

Net sales $645,000

Less: Cost of goods sold ($367,650)

Gross profit $277,350

Less: Expenses

Selling, general, administrative expenses ($142,100)

Other selling expenses ($14,600)

Advertising expense ($47,600)

Operating income $73,050

Less:

Income tax expense ($25,568)

Income from continuing operations before taxes $47,482

Loss from discontinued operations, net of savings $38,133 ($14,400)

Net income $33,082

4 0

3 years ago