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coldgirl [10]
2 years ago
12

Atlantic bank is required to hold 10% of deposits as reserves. If the central bank increases the discount rate, how would atlant

ic bank respond?.
Business
1 answer:
Zigmanuir [339]2 years ago
6 0

<u>Boosting its reserves</u> is the right response to the following query.

<h3><u>How Do Banks Work?</u></h3>

A bank is a type of financial institution authorized to grant loans and accept deposits for checking and savings accounts. Individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes are other services that banks offer.

Retail banks, commercial or corporate banks, and investment banks are just a few of the several sorts of banks. In the United States, banks are subject to both federal and state regulations. Since the fourteenth century, at least, banks have existed.

They give customers and business owners a secure place to store their cash as well as a way to get loans for both personal and professional endeavors. Banks provide loans and charge interest on them using the money that is deposited.

Learn more about banks with the help of the given link:

brainly.com/question/24941951

#SPJ4

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On November 1, 2017, Bob, a cash basis taxpayer, gave Dave common stock. On October 30, 2017, the corporation had declared the d
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3 years ago
Rose Hill Trading Company is expected to have EPS in the upcoming year of $6. The expected ROE is 18%. An appropriate required r
Nesterboy [21]

Answer:

We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.

0.18*0.7=0.126= 12.6%

We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.

(1-0.7)= 0.3 which is the dividend payout ratio

Dividend= Dividend payout ratio *EPS

0.3*6=1.8

This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.

Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.

The formula for DDM is D*(1+G)/(R-G)

D= 1.8

G= 0.126

R=0.14

1.8*(1+G)/0.14-0.126

=144.77

Discount it to find the present value

144.77/1.14

=128.5

The intrinsic value of the stock should be 128.5

Explanation:

7 0
3 years ago
What is market positioning?
vesna_86 [32]

Answer:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors

4 0
4 years ago
Accounts receivable, net of the allowance for doubtful accounts is called:.
charle [14.2K]

Accounts receivable, net of the allowance for doubtful accounts is called  net realizable value.

<h3>What is net realizable value?</h3>

Net realizable value is the method of knowing the value of asset that is held as inventory. The purpose of this method is to avoid overstating or understating the value of an goods in inventory.

The net realizable value is the result of deducting the costs incurred in selling the goods from its selling price.

Hence, accounts receivable, net of the allowance for doubtful accounts is called  net realizable value.

Learn more about net realizable value here : brainly.com/question/794345

6 0
3 years ago
A local university reports that 3% of their students take their general education courses on a pass/fail basis. assume that fift
Vlad [161]

Solving this problem is pretty straight forward. We simply have to find for the product of the fraction of the amount of students that take on a pass or fail basis and the total population. That is:

expected students = 0.03 * 50 students

expected students = 1.5 students

 

Answer:

<span>1.5</span>

5 0
3 years ago
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