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1 year ago

Look at the scenario money creation. how much of the $1,000 deposit is the bank required to keep in reserves?

Business

1 answer:

madam [21]1 year ago

3 0

The quantity of the $1,000 deposit is the bank required to keep in reserves is 20%.

<h3>What is a reserve deposit?</h3>

A reservable deposit would be any bank deposit subject to bank reserves established by the Federal Reserve Bank of the United States.

Some key features of reserve deposit are-

Through the mechanism of fractional reserve banking, such a deposit could be used in part as a loan.
The remaining portion, as established by the Fed's bank reserves, must be kept by bank & made available for prompt withdrawal upon request.
A reservable bank is a banks deposit that is subject to the reserve requirement guidelines of the Federal Reserve.
Transaction (checking) savings account, savings accounts, as well as non-personal time deposits are all examples of reservable deposits.
Sweep accounts, often known as money market funds, is non-reservable deposit account that generate a greater rate of interest than reservable deposit accounts.

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Which of the following does not represent a copyright?

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Answer choreographing a dance step by step

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Bradley's Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that he can sched

Mkey [24]

Answer:

Explanation:

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formula = Previous demand x Alpha + previous forecast x (1 - alpha)

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week 3 forecast

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3 years ago

Is a measure of the extent to which a system achieves its goals

Norma-Jean [14]

Yeah that’s what it means

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2 years ago

Terry took out a mortgage loan for $100,000 at an interest rate of 11.5% for 30 years. if terry had not had a bankruptcy on her

Mrrafil [7]

Because Terry had a bankruptcy on her credit report, the additional amount of interest that Terry is paying over the life of the loan is <u>$167,839.720</u>.

<h3>What is interest?</h3>

Interest is the finance charge for a loan or mortgage.

It is calculated on the principal amount based on the agreed rate and maturity period of the loan.

We can compute the interest using an online finance calculator as below.

<h3>Data and Calculations:</h3>

Home Price= $100,000

Down Payment = 0%

Loan Term = 30 years

Interest Rate = 11.5%

Monthly Payment: $990.29

Normal monthly payment (without a bankruptcy) = $524.07

Total of 360 Mortgage Payments = $356,504.92 ($990.29 x 30 x 12)

Total of 360 Mortgage Payaments without bankruptcy = $188,665.20 ($524.07 x 30 x 12)

Additional payment in interest = $167,839.720 ($356,504.92 - $188,665.20)

Thus, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.

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2 years ago

Financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership)

Jet001 [13]

Financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership) in return is called Venture capital.

<h3>What is venture capital example?</h3>

Venture Capital (VC) is the term used to describe investment given by investors to small or newly established companies that have a promising future.
A venture capital fund is a type of private equity that is funded by institutional and private investors, including investment banks, insurance providers, and pension funds.

<h3>What is a venture capital in business?</h3>

A type of funding for creative, early-stage enterprises with significant growth potential is venture capital (VC).
For entrepreneurs and start-up businesses, venture capital provides financing and operational experience, generally, but not always, in technology-based industries like ICT, health sciences, or fintech.

<h3>What is venture capital and its types?</h3>

The use of venture capital funds at various phases of a firm determines how they are categorized.
Early stage financing, expansion financing, and acquisition/buyout financing are the three basic forms.
Early stage financing is divided into three subgroups.

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1 year ago