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katrin2010 [14]
2 years ago
5

Assume company x deposits $100,000 in cash in commercial bank. If no excess reserves exist at the time this deposit is made and

the reserve ratio is 20 percent, bank a can increase loans by?
Business
1 answer:
kodGreya [7K]2 years ago
5 0

Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.

Reserve ratio = 20% = 20/100 = 0.25

Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000

Reserve ratio = Rerserve / Deposit

=> Reserves = 0.25*100,000 = 25,000

Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio

= $ 400,000 + 100,000

= $ 500,000.

The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to

Learn more about the commercial banks at

brainly.com/question/1238952

#SPJ4

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Joe Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,950 and variable expens
8_murik_8 [283]

Answer:

Decrease

Explanation:

Calculation to determine overall break-even point for the entire company

Contribution margin for C90B = ($19,950-

$5,985)/$19,950

Contribution margin for C90B = 70%

Contribution margin for Y45E =( $26,190- $10,476)/$26,190

Contribution margin for Y45E= 60%

Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%

4 0
2 years ago
Fred ran short on cash and borrowed​ $300 through a payday loan company. the company charged him a fee of​ $60 to borrow the​ $3
Ne4ueva [31]
<span>The answer is 1.43 % per day. Calculations: Formula for simple interest: I=PRT, where I=interest; P= borrowed amount; R=rate of interest in percentage; T=time for repayment hence; P=$300, I=$60, T=14 days, then R=? R={(I/PT) *100)}% per day={(60/300*14)*100}=1.43 % per day interest rate (R) that Fred was charged for the aforementioned loan was 1.43 % per day</span>
3 0
3 years ago
The accounting records of Brownwood Company revealed the following information: Work in process inventory, Jan 1 58,000 Work in
ivanzaharov [21]

Answer:

$721,000 is correct

Explanation:

Cost of goods sold =754000 + 125000 -158000

=721,000

8 0
3 years ago
Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. A
Ierofanga [76]

Answer: I'll need $2,14,309.02 in my savings account in order to make tuition payments over the next four years.

We follow these steps in order to arrive at the answer:

In this question, we need to take into account that we need to pay 35% as taxes on interest earned.

So even though the interest rate on the deposit is 5%, only 1 - 35% = 65% will be available for use.

Hence, effectively the deposit will only earn 0.05*0.65 = 0.0325\\ or 3.25% interest after taxes.

We'll compute the the Present Value of the annuity of 58,000 for four years at 3.25% interest in order to determine the amount that is needed today.

The Present Value of an Annuity formula is

\mathbf{PV_{Annuity}= PMT\left ( \frac{1 -(1+r)^{-n}}{r} \right )}

Substituting the values in the equation above we get,

PV_{Annuity}= 58,000\left (\frac{1 -(1.0325)^{-4}}{0.0325} \right )

PV_{Annuity}= 58,000\left (\frac{ 0.12008695 }{0.0325} \right )

\mathbf{PV_{Annuity}= 58,000 * 3.69 = 2,14,309.02}

3 0
3 years ago
Even though the research and development team of Orbiton Computer Inc. came up with promising technological innovations, the inn
nordsb [41]

Answer:

C

Explanation:

An organizational suitability statement for employees points out the reasons why the organization think their experience and skills are suitable for the position they are applying for in the organisation.

A suitability statement, known as a personal statement, shows a summary of the key skills and experience you possess for a given job

Thus Orbiton Computer's failure can be attributed to the lack of organizational suitability meaning the employees are not suitable and dont have the required skills for this job. They need to find the adequate skills for the job.

7 0
3 years ago
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