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Alla [95]
2 years ago
12

A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of?

Business
1 answer:
blsea [12.9K]2 years ago
3 0

A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.

<h3>What is reserve ratio?</h3>

The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.

Some key points related to reserve ratio are-

  • The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
  • Regulation D of the Federal Reserve Board establishes the reserve ratio.
  • Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
  • Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).

To know more about reserve ratio, here

brainly.com/question/13758092

#SPJ4

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Both Projects A and B are acceptable as independent projects. However, the selection of either one of these eliminates the optio
Slav-nsk [51]

Answer: Mutually exclusive

Explanation:

In probability theory and logic, two propositions or events are disjoint or mutually exclusive if both events cannot occur at the same time. An example is the outcomes derived from the single toss of a coin which either be head or tail

In the project example given, the theory used is called mutually exclusive since both projects can not be chosen at the same time and it is only one project at w time. Mutually exclusive events are also called independent events since they have no effect on the viability of the other options.

4 0
3 years ago
Praxis Corp. forecasts the following income statement for the next year:
Annette [7]

Answer: a. 1.42

b) 2.74

c) 3.89

Explanation:

a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.

It is calculated with the formula,

= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)

= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)

= 1.42

b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.

The formula is,

=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax

= 301,000/110,000

= 2.74

c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.

It is calculated by multiplying DOL and DFL.

= 1.42 * 2.74

= 3.89

Should you need any clarification just hit that comment button. Cheers.

3 0
3 years ago
Anyone know the answer to this one?
balu736 [363]

it looks to me that the answer could be C

Explanation:

it may be C

8 0
3 years ago
Read 2 more answers
Formaggio Vecchio announced its regular quarterly cash dividend of $0.20 per share. Currently there are one million shares outst
aleksandr82 [10.1K]

Answer:

A.On Ex-dividend date: November 20, 2006

B.1%

C.$0.19

D. $1.82

Explanation:

1.On Ex-dividend date: November 20, 2006

will the stock price change to reflect the value of the dividend

b. Calculation for Formaggio’s dividend yield

Using this formula

Dividend yield = dividend/share price

Let plug in the formula

= .20/20 = 1%

c. Calculation of how much the stock price is likely to fall

0.20*(1 – 15%) = P*(1 – 10%)

Solve for P = $0.19

d. Calculation of How much is the stock price likely to fall Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend.

$1,000,000 + (1,000,000 * 10%)

$1,000,00+$100,000

= 1,100,000 total shares

Hence,

$20,000,000 / 1,100,000 = $18.18 per share

$20 – 18.18 = $1.82 fall

5 0
3 years ago
What are the board directors in charge of
Mama L [17]

Answer:

The board of directors is elected to represent shareholders' interests

Explanation:

Every public company must have a board of directors composed of members from both inside and outside the company. The board makes decisions concerning the hiring and firing of personnel, dividend policies and payouts, and executive compensation. hope this helps you :)

7 0
3 years ago
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