All categories

2 years ago

If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to.

1 answer:

6 0

If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to 10 percent of its excess reserves.

<h3>What is the required reserve ratio?</h3>

The required reserve ratio is the percentage of deposits that commercial banks are required to keep with the Central Bank as reserve. The maximum amount a single bank can increase is a loan is equal to the inverse of the required reserve ratio.

Maximum amount of increase in loans = 1 / required reserve ratio

1/0.1 = 10

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

#SPJ1

You might be interested in

So far summer is boring but I got a wreck this journal book so how you guys doing

Rom4ik [11]

Good thank you, and you?

3 0

3 years ago

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t

Masteriza [31]

Answer:

55,000 Credit balance

Explanation:

Mango Company

Predetermined overhead rate /Estimated overhead cost

= $600,000 / $300,000

Estimated direct labor cost = 200%

Applied overhead :

=Actual direct labor cost of $335,000 × 200%

= $670,000

Overhead incurred-Overhead applied

$615000 – $670,000

=$55,000

Therefore At year-end, the balance in the Factory Overhead account is a: credit of $55,000

8 0

3 years ago

Read 2 more answers

The __________ is a good-faith estimate of credit costs and transaction terms that replaces the HUD Good Faith Estimate (GFE) an

lidiya [134]

Answer:

c. Loan Estimate

Explanation:

The loan estimate has replaced the Good Faith Estimate in 2015. Both documents are given by the mortgage lender to the consumer. The main purpose of the documents is for the customer to compare different offers from different lenders.

The main difference is that the loan estimate form is more comprehensive and understandable for the customers.

4 0

4 years ago

Hallowell Inc. has free cash flow of $2.5 million and 1.25 million shares outstanding. If you believe the price to cash flow rat

Vaselesa [24]

The highest price for the stock is $22.00.

<u>Explanation</u>:

<u>Given</u>:

Hallowell Inc has a free cash flow of $2.5 million and 1.25 million shares.
The cash flow ratio for the company is 11.

<u>Solution</u>:

For one stock the cash flow ratio is 11.

Then the highest price we should pay is $22.00.

So we should pay $22.00 for one stock.

Therefore the highest price we should pay for the stock is $22.00

5 0

3 years ago

Rent revenue $6540 Sales discounts $7830 Interest expense 13260 Selling expenses 99710 Beginning retained earnings 114930 Sales

Stels [109]

Answer:

Income Statement

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Revenue $ 381.430

Net Income -$ 22.779

Income attributable to controlling stockholders

Net Income -$ 22.779

Allocation to noncontrolling interest -$ 19.720

Income attributable to controlling stockholders -$ 62.219

Explanation:

Total Net revenue it's calculated with the Sales Revenue less Sales discounts and Returns and allowances.

Net Income it's calculated with the total Net Sales minus cost of goods sold, Expenses, Interest and Taxes for a determinated period.

To calculate the income to controlling stockholders it's necessary to subtracted at the end of the statement which they do not own.

Income Statement

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Sales $ 381.430

Cost of goods sold -$ 188.417

Gross Profit $ 193.013

Administrative Expenses -$ 80.660

Selling Expenses -$ 99.710

Other Income Rent Revenue $ 6.540

Net Income BEFORE Taxes $ 19.183

Interest Expenses -$ 13.260

Net Income BEFORE Taxes $ 5.923

Income Taxes -$ 28.702

Net Income -$ 22.779

Allocation to noncontrolling interest -$ 19.720

Income attributable to controlling stockholders -$ 62.219

4 0

4 years ago