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ludmilkaskok [199]
3 years ago
6

Assume that the required reserve ratio for commercial banks is 25 percent. if the federal reserve banks buy $3 billion in govern

ment securities from commercial banks, we can say that, as a result of this transaction, the lending ability of the commercial banking system will:
Business
1 answer:
aev [14]3 years ago
4 0

To solve this problem, we should remember that the formula for reserve ratio is:

r = reserves / demand deposits

Where,

r = reserve ratio

reserves = $ 3 billion in government securities

Therefore the demand deposits is:

demand deposits = $ 3 billion / 0.25

demand deposits = $ 12 billion

Since $ 3 billion was bought, therefore the increase in the lending ability of the commercial banks is:

$ 12 - $ 3 billion = $ 9 billion

 

Answer:

$ 9 billion

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Complete Question:

A. According to census data, the percentage of Southville's population that lives in rural areas has gradually been shrinking.

B. The standards for obtaining a mortgage loan in Southville have been more stringent compared to many other countries.

C. Prior to the crisis, the prices of existing homes also increased in proportion to the prices of new homes in Southville.

D. A large proportion of home buyers in Southville were individuals who already owned one or more houses.

E. The inflation-adjusted real wage in the construction industry increased by 10 percent prior to the crisis.

Answer and Explanation:

Options A and D would weaken Bob's argument. The reason why option A would weaken Bob's argument would be because Bob said that the population is increasing whereas the according to the census data, the population has gradually been shrinking.

The reason for option D is that the individuals who already owned houses were buying new houses. So what was the need for them to buy additional new houses?

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Sarah was in a meeting where various vendors were being considered. She noticed that one of the vendors had a history of mistrea
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C. role relativism

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Planning is often called the primary management function because​ _____________.
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Planning is often called the primary management function because,

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Pierce Corporation exchanged old equipment for new equipment. The original cost of the old equipment was $120,000, and its accum
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Answer:

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

--to record trade of equipment--

Explanation:

Let's break the transactions into small parts:

We need to remove the old equipment from accounting along with their accumulated depreciation so:

accumulated depreciation 40,000 debit

                   old equipment               120,000 credit

Then, we debit the new equipment at fair value:

new equipment 50,000 debit

Last, assuming the trade has commercial substance: we recognize the gain or loss on sale:

book value of traded equipment: 80,000

fair value of new equipment:         50,000

loss at disposal:                              30,000

<u>Thus, the journal entry will be as follows:</u>

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

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Which industry has been relying on neural network technology for over two decades?
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