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musickatia [10]
2 years ago
9

a commercial bank has $1,000,000 of customer checking deposits and actual reserves of $300,000. if the reserve ratio is 20 perce

nt, what is the maximum amount of new loans the bank can extend?
Business
1 answer:
alexira [117]2 years ago
8 0

The maximum amount of new loans the bank can extend is $800,000.

<h3>What is the maximum amount of new loans the bank can extend?</h3>

The reserve ratio is the amount of deposits that must be kept as reserves with the central bank. The money that is not kept as reserves can be used to create loans.

Maximum loan amount = deposit - (reserve ratio x deposits)

1,000,000 - (0.2 x 1,000,000) = $800,000

To learn more about required reserves, please check: brainly.com/question/26960248

#SPJ11

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Orlov [11]

bro there is no items in you question fix it and i'll answer bro

7 0
3 years ago
Match the expense revenues with expenses recognition approaches with the most appropriate accounting event.
Zigmanuir [339]

Answer:

Cause-and-effect relationship  - Cost of goods sold

With the Cause and effect relationship, costs are linked to the revenue that they were incurred for to create. Cost of goods would therefore be linked to revenue.

Specific time period  - Monthly salary payments to an office employee

Costs are to be recognized in the same period of time they were incurred. The monthly salary is to be paid monthly because it is incurred monthly.

Without regard to related revenue in the period incurred - Advertising expenditures

The advertising costs will be incurred when spent and not when the benefits are accrued.

4 0
3 years ago
In the above problem, the proposed new branch will _______ overall risk exposure and produce a(an) ______ effect. Fill in the ap
vfiekz [6]

Answer:

reduces; geographic diversification

Explanation:

In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.

7 0
3 years ago
A company produces fruit juice in five different flavors (Mango,Guava,Apple,Grape and Tropical). A local supermarket sells the p
djverab [1.8K]

Answer:

3 ÷ 5

Explanation:

Data provided in the question according to the question is as follows

There are five different flavors like Mango, Guava, Apple, Grape, and Tropical = 5

And, the three flavors i.e Guava, apple and the Grape = 3

So, the probability of the above three flavors is three flavors and the five flavors relation i.e shown below

= 3 ÷ 5

Hence, the answer is 3 ÷ 5

5 0
3 years ago
Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 25% of chance
Sphinxa [80]

Answer:

The least prize size G that I will be willing to buy the lottery is 192

Explanation:

First, Calculate the expected utility

Expected utility = \sqrt{100} = 10

There are two cases

Case 1

I win = 100 - 36 + G = 64 + G

Case 2

I lose = 100 - 36 = 64

Hence the expected utility can be calculated as follow

Expected utility = Chance to win x \sqrt{( 64 + G )} + Chance to lose x \sqrt{64}

10 = 25% x \sqrt{( 64 + G )} + ( 100% - 25% ) x \sqrt{64}

10 = 25% x \sqrt{( 64 + G )} + 75% x 8

10 = 25% x \sqrt{( 64 + G )} + 6

10 - 6 = 25% x \sqrt{( 64 + G )}

4 = 25% x \sqrt{( 64 + G )}

4 / 25% = \sqrt{( 64 + G )}

16 = \sqrt{( 64 + G )}

16^{2} = (\sqrt{( 64 + G )})^{2}

256 = 64 + G

G = 256 - 64

G = 192

3 0
3 years ago
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