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
Reil [10]
3 years ago
5

Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for

the Bank of Skidoo.
Bank of Skidoo

Assets Liabilities
Reserves$ Deposits $

The Bank of Skidoo has no excess reserves and is subject to a 6 percent required reserve ratio. Assume the Bank of Skidoo makes the maximum loan possible from Ginger's deposit to Thurston. Show this transaction in a new T-account for the Bank of Skidoo.

Bank of Skidoo

Assets Liabilities
Reserves$ Deposits $

Thurston decides to use the money he borrowed to purchase a sail boat. He writes a check for the entire loan amount to âGilligan's Seagoingâ Vessels, which deposits the check in itsâ bank, the Paradise Bank ofâ Kona, Hawaii. When the checkâ clears, the Bank of Skidoo transfers the funds to the Paradise Bank. Show these transactions in a newâ T-account for the Bank of Skidoo.

The maximum amounts of deposits that can be created from Ginger's initial deposit is $_____
The maximum amounts of loans that can be created from Ginger's initial deposit is $_____
Business
1 answer:
Nutka1998 [239]3 years ago
3 0

Answer:

1) Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for the Bank of Skidoo.

Reserves                                                  Checkable deposits

debit             credit                                  debit             credit  

5,000                                                                             5,000

2) The Bank of Skidoo has no excess reserves and is subject to a 6 percent required reserve ratio. Assume the Bank of Skidoo makes the maximum loan possible from Ginger's deposit to Thurston. Show this transaction in a new T-account for the Bank of Skidoo.

Reserves                                                  Loans

debit             credit                                  debit             credit  

5,000                                                       4,700

<u>                      4,700</u>                            

300

3) Thurston decides to use the money he borrowed to purchase a sail boat. He writes a check for the entire loan amount to Gilligan's Seagoing Vessels, which deposits the check in its bank, the Paradise Bank of Kona, Hawaii. When the check clears, the Bank of Skidoo transfers the funds to the Paradise Bank. Show these transactions in a new T-account for the Bank of Skidoo.

Reserves                                                  Checkable deposits

debit             credit                                  debit             credit  

5,000                                                                             5,000

                     4,700                                  <u>4,700                      </u>

300                                                                                 300

<u>                      4,700 </u>

                     4,400

4) The maximum amounts of deposits that can be created from Ginger's initial deposit is $_____

Increase in checkable deposits = change in bank reserves / required reserves = $5,000 / 6% = $83,333.33

The maximum amounts of loans that can be created from Ginger's initial deposit is $_____

the maximum amount of loans that can be created in Ginger's bank is $4,700, but the maximum amount that loans can be created in the whole banking system = $83,333.33 - $5,000 = $78,333.33

You might be interested in
"if i didn't have class tonight, i would save the $4 campus parking fee and spend four hours at work where i earn $10 per hour."
bixtya [17]
Opportunity Cost = It is the cost that is to be sacrificed for achieving something else.  
Given: - 
Campus parking fess (class) = $4 
Income earned through working for 4 hours in place of attending class = $40 ($10/hr) 
 Solution: -  
Opportunity cost of attending class = $4 + $40 = $44.
3 0
3 years ago
Why do most economists believe that the value for the government purchases multiplier is greater than the value for the tax mult
Rudiy27

Because taxes keep some of the original impact of the tax, unlike spending multipliers, the spending multiplier is always one bigger than the tax multiplier. Any changes in consumer spending that follow any real GDP expansion or contraction brought on by the application of fiscal policy are referred to as the multiplier impact.

Any shift in aggregate demand will typically be significantly increased with a high multiplier, making the economy more unstable. Contrarily, with a low multiplier, changes in aggregate demand will not be amplified by a large amount, leading to a tendency for the economy to be more stable.

To learn more about tax multiplier

brainly.com/question/28140364

#SPJ4

8 0
1 year ago
Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to l
ra1l [238]

Answer:

modified product - multiple markets

Explanation:

This type of strategy consists of offering different products, which are modified versions of some exiting product, to new markets.

In this case, the improved version of the wood wax is a modified version of the old wood wax, and is going to be targeted to a new and specific market (antique owners), while the original version is still going to be targeted at the current market.

4 0
3 years ago
亚裔歧视+见死不救=美国 亚裔歧视+见死不救=美国
pishuonlain [190]

----------------------,,,,<em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em><em>-</em>

7 0
2 years ago
The required return on the stock of Moe's Pizza is 12.2 percent and after tax required return on the company's debt is 3.82 perc
GalinKa [24]

Answer:

WACC 7.71894%

Explanation:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke = 0.101

ER = 0.72

Kd = 0.0382

DR = 0.18

t = 0.35

WACC 7.71894%

4 0
3 years ago
Other questions:
  • Analysis of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals
    5·1 answer
  • Hunt Incorporated sold $209,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% fin
    5·1 answer
  • The Doodad Company purchases a machine for $440,000. The machine has an estimated residual value of $40,000. The company expects
    7·1 answer
  • 3. Definition of economic costs Felix lives in Miami and runs a business that sells boats. In an average year, he receives $851,
    13·1 answer
  • the gradual reduction of regional constrasts resulting form increasing cultural, economic, political and other types of exchange
    15·1 answer
  • Transactions for the Monty Company, which provides welding services, for the month of June are presented below. June 1 Monthly i
    14·1 answer
  • Compare the two organizations you selected in terms of the public services they provide. How are they alike, and how are they di
    14·1 answer
  • From which country canada exports 2%
    9·1 answer
  • Select all that apply Given the accounts below, choose all of the ones that affect equity. (Check all answers that apply.) Multi
    11·1 answer
  • Scenario 4:
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!