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LUCKY_DIMON [66]
1 year ago
9

Suppose the required reserve ratio is 8% and the Fed purchases $10 million worth of Treasury bills from Wells Fargo. What's the

maximum possible increase of deposits in the banking system
Business
1 answer:
ahrayia [7]1 year ago
7 0

The answer is $100 million.

The reserve ratio is the percentage of a commercial bank's deposits that it must retain in cash as a reserve in case of large client withdrawals, as determined by the central bank.

The reserve ratio is a significant monetary policy instrument used by the Federal Reserve in the United States to boost or decrease the economy's money supply.

Banks require an RRR of 8% for demand deposits, not for funds received through the selling of treasury bills to the FED, hence Wells Fargo will be free to raise its loans by $100 million.

To know more about reserve ratio click here:

brainly.com/question/13758092

#SPJ4

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Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and the
-BARSIC- [3]

Answer:

$205,592

Explanation:

Interest cost is the Present Value of this $ 20,000 annuity streams at time zero i.e. ( Year 2022

Value of annuity stream = $ 20,000 x 11.11839

Present Value of annuity streams at 2015 =$ 222,367.80

Discount Factor for 2017 = (1.04)-2 = 0.92456

Present Value at 2022= $ 222,367.80 x 0.92456

Service Cost= $ 205,592

5 0
3 years ago
Antoine recently received an email from a fraudulent organization that sought his personal financial account information. Recogn
Airida [17]

Answer:

The answer is: Phishing

Explanation:

Phishing is carried out by individuals who are trying to scan users. This is done by sending emails to try to collect someone else's credit card information, online banking accounts, or other type of login information. Phishing can also be done through web pages that are designed to illegally collect their users' information.

3 0
2 years ago
As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
erma4kov [3.2K]

Answer:

The organization structure is not clearly defined, Managers are performing duties in various departments at a time.

Explanation:

San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.  

Questions 1: Planning, organizing, leading and controlling

Question 2: The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.

Question 3: The profits of San consulting will rise as there will be less duplication of work and every employee will be able to focus on their own task and will work with efficiency.

Question 4: Matrix. The matrix organizational structure is not suited in this organization. The right organizational structure for San consulting will be Functional Structure.

Question 5:

(i) The profits for San Consulting will decline

(ii) The profit will rise because employee will focus more on their specific tasks.

1B. Yes agree. The managers need to focus on the external environment as well to identify the opportunities and threats present which can stimulate changes for the organization.

5 0
2 years ago
How is insurance a trade-off between risk and cost?
Solnce55 [7]

<u>Explanation:</u>

Risk is involved in all types of investment the higher risk yields higher returns while lower risk yields lower returns. The trade off which the investor faces in making investment decisions is the risk return trade off.

In insurance the cost of risk includes the expected losses which are uncertain.  The trade off which is provided by insurance can be direct and indirect losses, internal risk reduction and residual uncertainty.  Insurance reduces the expected losses and eliminate the risk of loss by providing cover the cost of which depends on the nature of the risk.

8 0
3 years ago
You started a venture 2 years ago with $400,000 dollars and own 60% of the 500,000 shares issued. What is the pre and post money
Colt1911 [192]

Answer:

Alpha Venture :Post money $1,000,000

Alpha Venture :Post money $800,000

Beta Ventures Post money $400,000

Beta Venture Pre-money $800,000

Kappa Ventures Post money $200,000

Kappa Ventures Pre money $400,000

Explanation:

Calculation for Alpha Ventures Post money:

$200,000/20%=$ 1,000,000

Alpha Ventures Pre-money will be :

$1,000 000- $200,000

= $800,000

Calculation for Beta Ventures Post money

= $400,000

Beta Ventures Pre-money will be:

=$ 400,000+$400,000

=$800,000

Calculation of Kappa Ventures Post money:

= $200,000

Kappa venture Pre-money will be:

= $200,000+$200$000

= $400,000

5 0
3 years ago
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