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
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

You might be interested in
A company paid $0.58 in cash dividends per share. Its earnings per share is $4.30 and its market price per share is $28.75. Its
Lina20 [59]

Answer:

a) 2.02%

Explanation:

Dividend yield = Cash dividend per share / Market price per share

Dividend yield = $0.58 / $28.75

Dividend yield = 0.02017

Dividend yield = 2.02%

5 0
3 years ago
Advertising sales agents typically work under the direct supervision of a manager or supervisor.
wolverine [178]

Advertising sales agents typically work under the direct supervision of a manager or supervisor. True.

Initally, an advertising sales agent works under the direct supervision of a manager or supervisor. They are trained and coached by those who are experienced in the field. Once the sales agent has completed a set amount of hours (based on different agency requirements) they are no longer required to complete check-ins as often. These sales agents are then on their own most of the time by setting their own hours for work as long as they meet company goals.

4 0
3 years ago
Which utility applies to a company that educates customers about its products’ features? A. form utility B. knowledge utility C.
grandymaker [24]

Answer:

C. possession utility

Explanation:

The explanation can be justified by the definition of these terms.

<em>Possession utility </em>is a term used to refer the value that the company offers to the consumers if they purchase or use the product in the way that the company made it for - similar with the feature of products. In general, it is the perceived value from the products.

Meanwhile: Knowledge utility is created from the increase in knowledge of the consumers about the product. This applies to the customers. Form utility is created when there is change in the shape or forms of products. Place utility is about making goods and services accessible to the potential consumers. And price utility is about making products affordable with customers and reasonable with the value it offers.

3 0
3 years ago
Terral prime, an auditing firm, purchases a management information system called alpha duo. most of terral's employees are unfam
gogolik [260]
The answer to this question is a Request for Proposal. The request for proposal or RFP is a document requested and being sent to various suppliers / sub-contractors in order to present their company's services and cost of goods or services. It is also a document that is presented thru a bidding process in order to get the project from a certain company.
8 0
3 years ago
The right to a safe and healthy workplace is accurately described by which statement? Group of answer choices Over recent years
MakcuM [25]

Answer:

The correct answer is the second option: Extensive training and careful precautions are necessary to avoid accidents, injuries and illness.

Explanation:

To begin with, all of the other options are describing the fact that the laws that regulate the workplace environment are no necessary or state that are enough. That is why that in the option chosen it is stated that it is absolutely necessary to have extensive training in the areas of work, specially those who are danger, and to take precautions around all so that the accidents can be prevented and the injuries will no happen as well as the illnesses. Therefore that the right to a safe workplace is accurately described by that statement.

3 0
3 years ago
Other questions:
  • What role does math play in the insurance industry?
    14·1 answer
  • Coral Music manufactures harmonicas. Coral uses standard costs to judge performance.​ Recently, a clerk mistakenly threw away so
    7·1 answer
  • Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1&lt;000 clients per year. If the o
    11·1 answer
  • ​you consider the situation, roll up your sleeves, and get to work. what should be the first step you take in obtaining the info
    9·1 answer
  • Which of the following statements regarding Federal Reserve independence is​ incorrect?
    9·1 answer
  • Each individual must make choices because A. wants are sometimes mixed up with needs. B. resources are limited and therefore can
    12·1 answer
  • Please help help help
    13·1 answer
  • What is the relationship between financial system and economy
    10·2 answers
  • How can you get your money back if you send a p2p payment to the wrong person?.
    12·1 answer
  • 2. using dataset d1a as a basis for discussion, which online channels generate the most reviews about accorhotels? to what exten
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!