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
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Liberal humanism is a philosophical stance that highlights the agency and value of human beings, both individually and collectively.
Answer:
$50,000
Explanation:
Calculation to determine the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables
Using this formula
Loss on sale of receivables=[(Recourse Accounts receivable*Finance fee charges)+Estimated recourse liability]
Let plug in the formula
Loss on sale of receivables=(3%*$800,000)+$26,000
Loss on sale of receivables=$24,000+$26,000
Loss on sale of receivables=$50,000
Therefore the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables will be $50,000
I guess the correct answer is Labor
Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the Rocky Mountains. H obtains a loan and purchases the necessary land, facilities, advertising, and five helicopters for his business, the important factor of production has he overlooked in creating his business is Labor.
Answer:
Based on the EMV value, the best choice is to use Two suppliers
Explanation:
Is necessary to consider different amount of suppliers and evaluate the cost. We will choose the number of suppliers which offers a lower cost.
- EMV1 = cost of shutdown*super event risk + cost of shutdown*unique event risk + cost of managing supplier = 480000*.02 + 480000*0.05+16000 = 9600 + 24000 + 16000 = $ 49600
- EMV2 = cost of shutdown*super event risk + cost of shutdown*unique event risk of each supplier*unique event risk of each supplier + cost of managing 2 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 1200 + 16000*2 = $ 42800
- EMV3 = cost of shutdown*super event risk + cost of managing 3 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 16000*3 = $ 57600
Based on the EMV value, the best choice is to use Two suppliers
