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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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Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for l
Brilliant_brown [7]

Answer:

a. $478,450

b.Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

Cr   Retained earnings  $115,850

Explanation:

A. Calculation for the amount of net income that would be reported in 2015 for Pam Erickson Construction Company

Using this formula

Net income =(Income before income tax ) Income before income tax-Tax rate

Let plug in the formula

Net income= $683,500 - (683,500 × 30%)

Net income= $683,500 - $205,050

Net income= $478,450

B. Preparation of the Journal entry(ies) that are necessary to adjust the accounting records

For Pam Erickson Construction Company

Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

($165,500 × 30%)

Cr   Retained earnings  $115,850

($165,500 × (100%-30%)

5 0
3 years ago
The manager of the customer service division of a major consumer electric company is interested in determining whether the custo
Elanso [62]

Answer:  Stratified random sampling

Explanation:

Given : The manager of the customer service division of a major consumer electric company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. If there are 4 different brands of Blu-ray players made by the company.

The best sampling strategy which we can use is stratified random sampling because it is not much costly and also it induces the efficiency . We can me different strata according to the 4 brands , then we can randomly select participants for the sample.

  • Stratified random sampling is a method of probability sampling in which a researcher divides the entire population into multiple homogeneous groups known as strata and then he randomly select an sample members from each strata for research .
4 0
3 years ago
The buyer for an electronics store wants to estimate the proportion of defective wireless game controllers in a shipment of 5,00
Mila [183]

Answer: (C) Cluster sample

Explanation:

The cluster sampling is one of the sampling method type that is used for analyzing the given data or information from the given sampling cluster. In the cluster sampling method, the researches basically dividing the statistical population into the individual or separate group for analyzing the data.  

According to the given scenario, the cluster sample is one of the type of sample which us use for the given estimated problem.

The Cluster sampling is also refers as the one stage sampling process if the each element in the cluster are sampled together.

Therefore, Option (C) is correct.  

7 0
3 years ago
Mechelle has a life estate in a property in rural Maine. Mechelle has allowed people to camp and park in the backwoods of the pr
Reika [66]

The scenario that's illustrated regarding the property in this case is improper dominion.

<h3>What is dominion?</h3>

It should be noted that in law, dominion simply means the right to control the ownership of a a property.

In this case, since Mechelle has allowed people to camp and park in the backwoods of the property, leaving piles of trash everywhere and thereby diminishing the value of the property, this illustrates improper dominion.

Learn more about property on:

brainly.com/question/2475734

3 0
2 years ago
Most consumer protection statutes praise and protect unconscionable contracts and contracts of adhesion.
Mariana [72]

The statement " Most consumer protection statutes praise and protect unconscionable contracts and contracts of adhesion" is true.

<h3>What consumer protection?</h3>

Consumer protection can be defined as the way of protecting consumer or buyers against trade practice that is unjust.

Hence, the statement is correct because consumer protection help to praise and as well safeguard unconscionable contracts and contracts of adhesion.

Learn more about Consumer protection here:brainly.com/question/14952903

#SPJ1

4 0
2 years ago
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