Answer:
Excess reserve = $180 million
Explanation:
Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.
Therefore the required reserve for this bank = 10% ×$200 million= $20 million
Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.
It is calculated as = Total deposit - Required reserve
So we apply this to our question
Excess reserve = $200 million - (10% × $200 million)
= 180 million
Excess reserve = $180 million
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Answer:
9.67%
Explanation:
The total value of the portfolio = $ 2,950 + $ 3,700 = $6,650
The proportion of the portfolio invested in stock A = $ 2,950 / $ 6,650 = 44.36%
. The proportion of the portfolio invested in stock B = 100 - 44.36% = 55.64%
The expected return of the portfolio = 0.4436*0.08 + 0.5564*0.11 = 0.035488 + 0.061204 = 0.096692 = 9.67%
Answer: $242,567.27
Explanation:
The $5,000 is an annuity as it is being paid every year and is a constant amount.
The value in 19 years is the future value of this annuity:
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of years - 1) / rate
= 5,000 * ( ( 1 + 9.5%)¹⁹ - 1) / 9.5%
= $242,567.27
Answer:
0.75, 0.25
Explanation:
With an increase in disposable income marginal propensity to consume increase. Similarly, with an increase in disposable income marginal propensity to save increases. Marginal propensity to save is the amount of money saved or kept after a fraction increase in overall disposable income.
MPC = 300/400=0.75
MPS = 100/400=0.25
Marginal propensity to consume is 0.75
Marginal propensity to save is 0.25