Answer:
The correct answer is $30 billions.
Explanation:
The checkable deposits are given as $140 billions.
The total reserves are $51 billions.
The required reserve rate is 30%.
The required reserves will be
=30% of $140 billions
=
=$42 billions
The excess reserves will be
=total reserves-required reserves
=$51-$42
=$9 billions
Maximum expansion by lending will be
=
=
=$30 billions
So, the money supply can be expanded by a maximum amount of $30 billions.
Answer:
$131,625
Explanation:
The computation of the net income for the year is shown below:
As we know that
Return on assets = net income ÷ average assets
0.15 = net income ÷ ($810,000 + $945,000) ÷ 2
0.15 = net income ÷ $877,500
So, the net income is
= $877,500 × 0.15
= $131,625
hence, the net income for the year is $131,625
We simply applied the above formula
Answer:
Option B
Explanation:
When any new product arrives in market, the consumers are not much interested because they don't know the benefits of the product. Through many types of advertisements when the manufacturing company shows benefits of product and motivates the consumers to try the product as it is better than the other products in the market, there are chances that consumers will successfully adopt the new product of the company.
The answer is <u>"A. Mutual funds".</u>
A mutual fund is a professionally overseen investment support that pools cash from numerous speculators to buy securities. These speculators might be retail or institutional in nature.
Mutual funds have points of interest and drawbacks contrasted with direct putting resources into individual securities. The essential favorable circumstances of mutual funds are that they give economies of scale, a larger amount of broadening, they give liquidity, and they are overseen by expert financial specialists. On the negative side, financial specialists in a mutual funds must pay different charges and costs.
Answer:
(i) 1.57
(ii) 12.40%
(iii) $76,898.60
Explanation:
Debt-equity ratio = debt/equity
Hence debt= 0.57 equity
= (0.57 × 620000)
= $353,400
Total assets = debt + equity
= (353400+620000)
= $973400
1. Equity multiplier = Total assets ÷ Equity
= $973,400 ÷ 620,000
= 1.57
3. ROA = net income ÷ Total assets
net income = ($973,400 × 0.079)
= $76,898.60
2. ROE = net income ÷ Total equity
= $76,898.60 ÷ 620,000
= 12.40%(Approx).
