All categories

1 year ago

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

Business

1 answer:

blsea [12.9K]1 year 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

You might be interested in

When total cost or total variable cost is increasing, there are increasing marginal returns to the variable input.

SVETLANKA909090 [29]

Answer:

The correct answer is (B) False.

Explanation:

Variable costs, as the name implies, differ with the level of production and are associated with the use of variable factors, such as labor and raw materials. Since the amounts of factors increase as production increases, variable costs increase when it does.

3 0

2 years ago

Alliance Company’s budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4

anyanavicka [17]

Answer:

Budgeted material cost for January is $ 256,000

Explanation:

Computations

<u>Raw materials requirement for January</u>

Units to be produced in January 24,000 units

Raw material requirement for January at 4 pounds per unit 96,000 pounds

<u>Raw materials requirement for February</u>

Units to be produced in February 28,000 units

Raw material requirement for February at 4 pounds per unit 112,000 pounds

40 % of requirement of February to be available end January <u>44,800 pounds</u>

<u>Purchases for January</u>

Closing Inventory+ Consumption -Opening Inventory

44,800 pounds + 96,000 pounds - 38,400 pounds = 102,400 pounds

Cost per pound $ 2,50 per pound = $ 256,000

4 0

2 years ago

PLEASE HELP!

kiruha [24]

Answer:

Consumers should not buy from companies that don't source materials

Explanation:

Companies should never have an excuse for not sourcing for their materials responsively and responsibly. They owe an ethical responsibility as well as a duty to offer their customers qualitative products at the best price and that is most sustainable to the environment.In recent times, through the widespread use of social media and the instrument of investigative journalism, it has been able to bring to the surface, the less than responsible activities of many companies in sourcing for their interest of the public and the environment.The 2006 movie "Blood Diamond" shows an avid description of how diamonds are mined and traded in the war-torn country of Sierra Leonne depicting the violation of Human and Child rights and how is excessively enriched diamond suppliers and companies.It is clear that many companies despite the public outcry for transparency in revealing their supply chain in sourcing for their materials still chose unorthodox practices. It therefore, falls on the consumers to spend their money responsibly and make smart and credible choices with their finances by refusing to buy from companies that are not transparent with their source materials.Consumers are the life-wire of any business and the hope of any business survival rests majorly on consumer satisfaction. Researches have shown that companies are no being accountable with the natural resources are utilized and have been used to cause serious harm to people and the environment. Since the companies manage to evade adequate regulations and responsibilities, it falls on the consumers to ensure that their money serves them to the greatest value.

8 0

3 years ago

a 17-year annuity pays $1,100 per month, and payments are made at the end of each month. The interest rate is 16 percent compoun

zzz [600]

Answer:

The present value of the annuity is $73,091.50

Explanation:

Use the following formula to calculate the present value of the annuity

Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor for 6 years ]

Where

Annuity Payment = $1,000

Annuity factor for first 6 years = 1 - ( 1 + 16%/12 )^-(6x12) / 16%/12 = 46.10028344

Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820

Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163

Placing values in the formula

Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]

Present value of annuity = $46,100.28 + $26,991.22

Present value of annuity = $73,091.50

4 0

2 years ago

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occup

Mariulka [41]

Answer:

The answer is non-compete agreement

7 0

2 years ago