1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
max2010maxim [7]
2 years ago
6

If the banking system has demand deposits of $100,000, total reserves equal to $15,000, and a required reserve ratio of 10 perce

nt, the banking system can increase the volume of loans by a maximum of
Business
1 answer:
Dmitriy789 [7]2 years ago
4 0

The banking system can increase the volume of loans by a maximum of $50,000

<h3><u>What are total reserves?</u></h3>
  • A bank's reserves are calculated by multiplying its total deposits by the reserve ratio. For example, if a bank's deposits total $500 million, and the required reserve is 10%, multiply 500 by 0.10. The bank's required minimum reserve is $50 million.
<h3><u>Calculation of total reserves</u></h3>
  • The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country's central bank, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.

Total Reserves = Cash in vault + Deposits at Fed.

Required Reserves = RR x Liabilities.

Excess Reserves = Total Reserves - Required Reserves.

Change in Money Supply = initial Excess Reserves x Money Multiplier.

Money Multiplier = 1 / RR.

Therefore banking systems can increase the volume of loans by $50,000

To know more about bank reserves. click the given links.

brainly.com/question/14173699

brainly.com/question/26960248

#SPJ4

You might be interested in
Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,00
swat32

Answer:

Operating cash flow= $29,886

Explanation:

Giving the following information:

Sales= $262,100

Total variable cost= $144,000

Total fixed costs= $61,300.

Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.

<u>We need to determine the operating cash flow:</u>

Sales= 262,100

Total variable cost= (144,000)

Contribution margin= 118,100

Total fixed costs= (61,300)

Depreciation= (25,200)

Interest= (24,500)

EBIT= 7,100

Tax= (7,100*0.34)= (2,414)

Depreciation= 25,200

Operating cash flow= 29,886

7 0
3 years ago
Jiyaing is an hr manager at a research firm in china, and her company has decided to open a branch in the united states. jiyaing
grandymaker [24]
The type of cultural intelligent Jiyaing needs is "low-context culture".


There are two terms which are used, high-context culture and low-context culture, both are opposite to each other.In low-context culture, individuals utilize communication principally to trade realities and data; meaning is resulted basically from words; business exchanges are more critical than building connections and trust; and individual welfare and accomplishment are more imperative than the gathering.
4 0
3 years ago
A production possibilities​ frontier: A. shows how unlimited wants exceed the limited resources available to fulfill those wants
solong [7]

Answer:

The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.

Explanation:

The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.

4 0
3 years ago
Read 2 more answers
A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of a
Neko [114]

Answer:

Salaries expense 5,190

 Salaries payable   5,190

unearned rent revenue  90940 debit

      rent revenue                90940 credit

advertizing expense  6,800 debit

  prepaid advertising      6,800 credit

interest expense        3,934 debit

        interest payable       3,934 credit

Explanation:

<u>Salaries accrued</u>

5 employes   $750 each = 3750

3 employees $480 each = 1440

Total = 5190

<u>Rent revenue</u>

$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st)  =66700

$6,060 per month x 4 lease x 1 month = 24240

total 90940

<u>advertizing:</u>

8,400 / 12 months x 8 months expired = 5600

9,600 / 24 months x 3 months expired =  1200

total 6,800

interest on note payable:

principal x rate x time

56,200 x 12% x 7/12 = 3,934

8 0
3 years ago
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed pe
SOVA2 [1]

Answer:

Life income with certain period annuity

Explanation:

This type of policy guarantees a certain amount of money during the remaining life of the insured. It also guarantees that during a minimum specified time, the certain period, the payments will be carried out even if the insured dies. In this case the benefits will be paid to his/her beneficiary. The insured determines the certain period when choosing the life insurance plan, and the certain period can vary from 5 to 30 years.

8 0
3 years ago
Other questions:
  • Why haven't the changes to campaign finance laws passed in 2002 been effective in stopping the flow of soft money?
    13·2 answers
  • NEED HELP ASAP
    14·1 answer
  • In one state, a mortgagee holds legal title to real property offered as collateral for a loan, and the mortgagor retains the rig
    12·1 answer
  • s a finance manager at Outdoor Adventure Sporting Goods, Roman worries about the firm's borrowing requirements for the upcoming
    5·1 answer
  • Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a
    10·1 answer
  • Carver Packing Company reports total contribution margin of $80,960 and pretax net income of $25,300 for the current month. In t
    5·1 answer
  • Jackson is a recent college graduate who just got his first job. He commutes approximately 35 minutes each way
    15·1 answer
  • The phrase gains from trade refers to the: increase in total output that is realized when individuals specialize in particular t
    11·1 answer
  • Making the choice to spend money on post secondary
    15·1 answer
  • Not knowing the roles of key players in the buying process could cause a sales representative to?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!