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tigry1 [53]
2 years ago
12

Bank A has an increase in deposits of $20 million dollars and all bank reserve requirements are 10%. Bank A loans out the full a

mount of the deposit increase that is allowed. This amount winds up deposited in Bank B. Bank B finds out the full amount possible as well and this amount winds up deposited in Bank C. What is the total increase in deposits resulting from these three banks
Business
1 answer:
dexar [7]2 years ago
3 0

Answer:

Total increase in deposit  = $54,200,000

Explanation:

given data

deposits = $20 million dollars

bank reserve = 10%

solution

we know that Deposit in bank A  is = $20,000,000

and  Reserve @ 10%   = $2,000,000

so

Bank A loans or bank B deposit  will be = $20,000,000  - $2,000,000

Bank A loans or bank B deposit  = $18,000,000

here  Reserve @ 10%  = $1,800,000

so

Bank B loans or Bank C deposit  will be here = $18,000,000  - $1,800,000

Bank B loans or Bank C deposit = $16,200,000

so that

Total increase in deposit will be = Bank A + Bank B + Bank C     ...............1

put here value we get

Total increase in deposit  = $20,000,000 + $18,000,000 + $16,200,000

Total increase in deposit  = $54,200,000

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Answer:

relating the topic to the audience

Explanation:

Based on the scenario being described within the question it can be said that to gain attention and interest Paul related the topic to the audience. Paul did this by comparing Lou Gehrig to the audiences daily lives at school. By doing this it is catching the audiences attention which in term causes them to be interested in the rest of the speech that Paul is giving.

7 0
3 years ago
Which of the following is TRUE regarding unexpected expenses?
kaheart [24]

Answer:

They should be planned for.

Explanation:

Unexpected expenses include emergencies and other unforeseen costs that a person incurs in day to day activities.  These unexpected expenses must be paid for, which means resources must come from somewhere to effect the payments.

The best way to cater to unexpected expenses is to include them in the budget. Contingencies is the term used to describe funds kept aside to settle unexpected expenses. Without a contingency arrangement, unexpected expenses will affect the budget and a person's ability to pay normal bills.

4 0
2 years ago
What will happen to the firms equilibrium wage rate when the supply of labour decrease from 25 to 15? Explain with the help of d
Tpy6a [65]

Answer:

Wage rate = $960

Explanation:

Supply of labor is the number of hours workers are willing to work at a given real wage rate. When wage rate increases, supply of labor also increases because more people are encouraged as now they can obtain a higher income. When wage rate decreases, labor supply also decreases.

<em><u>View diagram</u></em>

In this case, however, there has been a decrease in supply, causing the supply curve to shift from S to S1. This can be due to many reasons such as migration, increase in minimum working age or increase in interest in education causing more people to study. When the supply of labor falls, there are less people available for work. Thus, demand exceeds supply, causing a shortage. Hence, the pressure causes price, i.e. wage rate to increase. To determine by how much the increase is, cross-multiplication can be used:

At 25 laborers, wage rate is $600 (25 = 600)

At 15 workers, wage rate is X (15 = X)

We now substitute for X, which is the amount by which wage rate will increase.

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Thus, 25X = 9000 (600 x 15)

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3 0
3 years ago
Tara wants to put a small portion of every paycheck into a low-risk investment. which would be her best option?
nydimaria [60]

Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

<h3>What is a paycheck?</h3>

A paycheck can be defined as a financial document that is issued by an employer to an employee as payment for the work done over a period of time.

<h3>What is risk tolerance?</h3>

In Insurance, risk tolerance can be defined as the willingness of an individual or organization to take a risk in business transactions and investments, in order to get a potentially positive reward.

Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.

In this scenario, we can reasonably infer that Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

Read more on low-risk investments here: brainly.com/question/26164819

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6 0
1 year ago
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seraphim [82]

Answer:

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