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2 years ago

The formula for maximum demand deposit creation is ______ multiplied by the monetary multiplier.

Business

1 answer:

Likurg_2 [28]2 years ago

4 0

The formula for maximum demand deposit creation is excess reserves. multiplied by the monetary multiplier.

A demand deposit is what?

A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any moment. Demand deposit money is often used by the depositor to cover daily expenses. The bank or financial institution may offer a minimal or no interest rate on the deposit for monies in the account.

Demand Payment

A person may only withdraw a set amount every day or a maximum amount equal to their account balance. Money in a checking or savings account would be typical examples of demand deposits. Demand deposits differ from term deposits in this regard. Term depositors must wait a specific amount of time before making any withdrawals.

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C. 17.5 years

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3 years ago

You do an extensive survey and learn that 15 out of the 200 people surveyed like to eat out on Tuesdays. You then look only at t

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The family should be less likely to eat out on Tuesday as compared to the general population.

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Out of 200 people, 15 people should eat out on Tuesday.
Now only look 60 families out of this 10 should be preferred to eat out on Tuesday.

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3 0

3 years ago

Choose the items below that would be added to the book balance on a bank reconciliation. (Check all that apply.)

Blizzard [7]

Answer:

A. Interest earned on the depositor's account

B. Deposit in transit and Note collected by the bank for the depositor

Explanation:

In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.

Adjusted balance ends the bank section of a bank reconciliation. Thus, in the event of any fraudulent behavior by an employee, the bank reconciliation would detect any anomaly or financial fraud in the organization.

In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.

The items that would be added to the book balance on a bank reconciliation include the following;

A. Interest earned on the depositor's account.

B. Deposit in transit and Note collected by the bank for the depositor.

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3 years ago

Mr. West wishes to purchase a condominium for $240,000 in cash upon his retirement 10 years from now. How much should he deposit

Oduvanchick [21]

Answer:

He should deposit $1,744.37 at the end of each month.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the of condominium = $240,000

M = Monthly payment = ?

r = monthly interest rate = 2.7% / 12 = 0.027 / 12 = 0.00225

n = number of months = 10 years * 12 months = 120

Substituting the values into equation (1) and solve for M, we have:

$240,000 = M * (((1 + 0.00225)^120 - 1) / 0.00225)

$240,000 = M * 137.585424499073

M = $240,000 / 137.585424499073

M = $1,744.37

Therefore, he should deposit $1,744.37 at the end of each month.

8 0

3 years ago