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Tomtit [17]
3 years ago
12

Assume that the required reserve ratio is 5 percent. If a commercial bank has $2 million cash in its vault, $1 million in govern

ment securities, $3 million on deposit at the Fed, and $60 million in checkable deposits, then its excess reserves equal:
(A) 0 million
(B) 2 million
(C) 5 million
(D) 6 million
Business
1 answer:
Stels [109]3 years ago
4 0

Answer:

The correct answer is option B.

Explanation:

The required reserve ratio is 5 percent.

A commercial bank has $2 million cash in its vault, $1 million in government securities, $3 million on deposit at the Fed, and $60 million in checkable deposits.  

The required reserves

= Required\ reserve\ ratio\ \times\ checkable\ deposits

= 0.05\ \times\ \$60 million

= 3 million

The total reserves are the amount in the vault and the deposits at the fed. So, the total reserves are $5 million.  

The excess reserves are

= $5 million - $3 million

= $2 million

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The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The compan
miss Akunina [59]

Answer:

Check the explanation

Explanation:

Particulars                                                      Amt

Opening Cash                                               51907

Add: Cash Received (13400+4500)            17900

Less: Payment to supplier                            5500

Less: Operating Expenses Paid                   48950

Closing Cash Balance                                  15357

8 0
3 years ago
Sherman, Inc. manufactures chainsaws that sell for $65. Each chainsaw uses $14 in direct materials and $9 in direct labor per un
anzhelika [568]

Answer: $18

Explanation:

Based on the information,

Sales revenue = $65 × 225 = $14625

Cost of goods sold = (45 × $20) + (1125 × $4) + (225 × $14) + (225 × $9)

= $900 + $4500 + $3150 + $2025

= $10575

Gross profit = Sales revenue - Cost

= $14625 - $10575

= $4050

The gross profit for one chainsaw will be:

= $4050/225

= $18

6 0
3 years ago
Debt management ratios measure __________.
tankabanditka [31]
Debt management ratios measure how well a company is using debt versus equity position.
8 0
3 years ago
Seven months ago, you purchased 140 shares of Mitchum Trading for $50.07 per share. The stock pays a quarterly dividend of $.17
sesenic [268]

Answer:

The answer is $47.6

Explanation:

Solution

Given that

You bought = 140 shares of  Mitchum Trading for $50.07  per share

The quarterly dividend = $.17

The current price = $51.03

So we find the total dividend income you received which is computed below:

The total dividend received = (0.17 * 2) * 140

=(0.34) * 140

= $47.6

Therefore the total dividend of income that you received is $47.6

4 0
3 years ago
I prefer situations where everyone has to work together to reach a goal. Agree or Disagree?
Cloud [144]
Agree, since two minds work better than one.
4 0
3 years ago
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