All categories

1 year ago

The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as ______.

1 answer:

7 0

The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as :- Statutory Reserve Ratio.

The statutory reserve ratio (SRR) is the proportion of the deposit liabilities that commercial banks are required to keep as a cash deposit with the Central Bank. Under the Monetary Law Act (MLA), commercial banks are required to maintain reserves with the Central Bank at rates determined by the Bank.

<h3><u>Why is SRR important?</u></h3>

Reserve requirements are the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals. Reserve requirements are a tool used by the central bank to increase or decrease the money supply in the economy and influence interest rates.

To know more about SRR, check the links.

brainly.com/question/24174376

brainly.com/question/24179879

#SPJ4

You might be interested in

John spent $50.00 at a carnival on food and tickets. He purchased $15.50 in food and bought 25 tickets. How much did each ticket

ira [324]

50 - 15,5 = 34,5

34,5/25= $1,38 per ticket

8 0

2 years ago

Read 2 more answers

On January 1, 2018, equity account balances are as follows: Preferred Stock $ 500,000 Common Stock 1,000,000 Paid-In Capital in

Ludmilka [50]

Answer:

a. debit to Paid-In Capital From Treasury Stock of $155,000

Explanation:

Treasury Stock purchase 25,000 shares = $762,500

Per share value = $762,500/25,000 shares

Per share value = $30.5

Selling price of 10,000 treasury stock = $15 × 10,000 = $150,000

Purchase price of 10,000 treasury stock = $30.5 × 10,000 = $305,000

The deference between sales and purchase of treasury stock = $155,000

Therefore, option A is the answer because paid-In Capital From Treasury Stock becomes a debit due to selling the stock in low price.

4 0

3 years ago

List the steps of the accounting cycle in their proper order.

Vlad [161]

Answer:

The accounting cycle is all about managing,updating and reporting on the firm's accounts.

Explanation:

The accounting cycle can be listed in the following nine steps as:

Step 1: analyzing transactions as sales, purchase,etc
Step 2: All the transactions need to be recorded
Step 3: All the information should be transferred from journal to the ledger
Step 4: An unadjusted trial balance should be formulated
Step 5:Adjusted entries are prepared
Step 6: An adjusted trial balance is constructed
Step 7: a financial statement is prepared
Step 8: Closing entries are prepared
Step 9: The post closing trial balance is prepared

3 0

3 years ago

The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over

Lostsunrise [7]

Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).

Explanation:

Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.

The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.

7 0

3 years ago

Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: The bank owes Sam $100 per y

joja [24]

Answer:

X=97.24

Explanation:

PV = Present Value = X+2000 by the 16th years

PMT = Payments = $100

FV = Future Value = 2000 at the end of 16 years

n= number of years

Applying the equation of future value for annuity

FV = pmt* ((1+r)ⁿ - 1 )/r

Inputting the values;

2000=100*((1+r)¹⁶-1)/r

Solving for r, gives r = 2.9%

Therefore using the formula for PV for annuity;

PV=PMT*(1-(1/1+r)/r)

X=100*(1-(1/1.029)/0.029

X=100*((1-0.9718)/0.029)

X=100*(0.0282/0.029)

X=97.24

7 0

3 years ago