1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
torisob [31]
3 years ago
15

Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8​%, and reserves

are currently ​$25 million. The amount of deposits is ​$ 312.5 million. ​(Round your response to one decimal​ place.) The reserve shortage created by a deposit outflow of ​$4 million is ​$ ____ million.
Business
1 answer:
grandymaker [24]3 years ago
3 0

Answer:

$3.68 million

Explanation:

Reserve Ratio = 8%

Reserves are currently = ​$25 million

Amount of deposits = ​$ 312.5 million

Deposit outflow = ​$4 million

Remaining Deposits =  Amount of deposits - Deposit outflow

                                  = $ 312.5 million - $4 million

                                  = $308.5 million

Current Required Reserve after outflow of deposits(CR):

= $25 million - ​$4 million

= $21 million

Therefore,

Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)

                                   = $21 - ($308.5 × 0.08)

                                   = $21 - $24.68

                                   = -($3.68)

Therefore, the reserve shortage created by a deposit outflow of ​$4 million is ​$3.68 million

You might be interested in
Which of these have played the greatest role in the spread of information in the 21st century?
gavmur [86]
I believe the answer is television
5 0
2 years ago
Read 2 more answers
Which of these statements best represents the law of supply? select one:
Nata [24]

The answer is: A.When the price of a good decreases, sellers produce less of the good

When the price of a good decrease, the amount of profit that the sellers could made is also decreasing. Because of this, sellers would feel less motivation to sell that product and start to reduce the supply of the product and replace it with newer ones.

7 0
2 years ago
Which would be the most likely target market for a new brand of high-end athletic shoes?
qwelly [4]

Answer:

Dedicated athletes, like a marathon runners

Explanation:

6 0
3 years ago
When total demand outpaces actual output in the economy, the economy usually enters?
alexandr402 [8]
The economy usually enters into DEMAND PULL INFLATION. This situation is usually describes as too much money chasing too few goods. Demand pull inflation is characterized by increase in the prices of goods and services, increase in real gross domestic product and decrease in unemployment. 
8 0
3 years ago
On December 1, Year 3 Walton Company paid $3,600 cash for office space to be used during the coming year. This event is_________
Alex787 [66]

Answer:

christmas party

Explanation:

3 0
2 years ago
Other questions:
  • Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable $ 30,000 Accounts receivabl
    7·1 answer
  • g "Seidman Company manufactures and sells 30,000 units of product X per month. Each unit of product X sells for $16 and has a co
    11·1 answer
  • A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,45
    8·1 answer
  • How many start-up businesses are created each year
    9·2 answers
  • When determining whether to record an asset as a fixed asset, what two criteria must be met?
    7·1 answer
  • Identify which of the following is not generally a right of common stockholders. Vote at stockholders' meetings Manage operation
    14·1 answer
  • ABC Corporation has noticed the following transactions havent been account for in its income statement for the year ended Decemb
    10·1 answer
  • g Suppose total output (real GDP) is $1,000 and labor productivity is $10. We can conclude that the number of worker hours must
    15·1 answer
  • 1. What is the author trying to say in comparing Becky's world with Desta's world?<br><br> Help me
    13·1 answer
  • For the past year, Zhao Events had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!