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inn [45]
1 year ago
9

A commercial bank has $50 million in checkable-deposit liabilities and $10 million in actual reserves. The required reserve rati

o is 8 percent. How big are the bank’s excess reserves?
Business
1 answer:
Lilit [14]1 year ago
5 0

The bank’s excess reserves are $6 million.

The required reserve ratio is 8%. It means that banks should keep 8% in their deposits as required reserves. The bank has a deposit of $50 million. It means it has to maintain only $4 million(50×0.08 )i.e 8% of 50 million,  as a required reserve. Excess reserves are the reserve, over and above required reserves. If overall reserves are 10 million and required reserves are only 4 million then excess reserve =6 million (10 -4)

The reserve ratio is the portion of reservable liabilities that business banks must keep onto, rather than lend out or invest. this is a requirement decided with the aid of the country's primary bank, which in America is the Federal Reserve. it is also known as the cash reserve ratio.

A reserve assets ratio for a bank which units the minimal liquid reserves that a bank ought to hold in the event of a sudden boom in withdrawals. A high reserve property ratio may limit the lending that a bank is able to do – it must maintain better amounts of cash.

Learn more about reserve ratio here brainly.com/question/13758092

#SPJ4

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Operations management moves from knowing the needs of consumers to actually satisfying those needs.a) trueb) false
Mariana [72]

Answer:

<u>True</u>

<u>Explanation:</u>

Remember, no business operations would exist if there aren't any identified customer needs to solve.

Also, we need to bear in mind that Operations management activities are done in any business in other to efficiently (profitably) process raw materials,  labor, etc into the goods and services needed by consumers.

8 0
2 years ago
Larned Corporation recorded the following transactions for the just completed month.
lara [203]

Answer:

1. Dr Raw materials $80,000

Cr Account payable $80,000

2. Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

Cr Raw materials $71,000

3. Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

Cr Cash $112,000

4. Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

Explanation:

Preparation of Journal entries

1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :

Dr Raw materials $80,000

Cr Account payable $80,000

(Raw materials purchased on account)

2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:

Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

(71,000-62,000)

Cr Raw materials $71,000

(raw material charged to production)

3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :

Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

(112,000-101,000)

Cr Cash $112,000

(Wages charged to production)

4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :

Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

(Depreciation charged)

4 0
3 years ago
If your supervisor is hesitant about accepting your ideas, your best strategy would be to a. preview your conclusion before you
rjkz [21]
<span>Selection C is the most appropriate. By establishing credibility at the outset of your proposal, you can make it clearer that you understand the scope of the problem you're trying to solve. This can also make is easier for your supervisor to develop questions that he or she may have as a way of teasing out some more specifics about your plans and suggestions.</span>
8 0
3 years ago
How can you know if it's a good time to start your business?
Sonbull [250]

Answer:

The  good time to start your business is when When the economy is strong

<u>Explanation:</u>

Beginning a business is like starting a relationship; the appropriate time to establish a business is the point at which you have the opportunity to give your consideration about the business. The best time for beginning a company should not be affected by one’s age.

Individuals of all ages can start a business, and you might be astounded to realize that most entrepreneurs in the US are more seasoned; 51% of proprietors of independent companies have many years of operations and still successful.

6 0
3 years ago
Barnes Corporation purchased 75 percent of Nobles’ common stock for $262,500, which was acquired at book value. The fair value
Wittaler [7]

Solution:

Barnes Corporation purchased 75 percent of Nobles’ common stock

During the year, Nobles reports net income of $40,000.

Hence, 75% of net income of Nobbles is attributable to Barnes Corporation.

Barnes reports for income from subsidiary prior to consolidation

                                                          = 40,000 x 75%

                                                           = $30,000

3 0
3 years ago
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