$20,000 is correct
When they ask for the amount the bank can "create" they are really asking for the <u>change in the money supply</u><u>.</u> They are required to reserve 20%, so they can loan out 80%
80% * $5,000= $4,000
Now, the bank can use this $4,000 by loaning it out to other customers and earning interest on those loans. The customers can use the money for investments or spending. So the first little deposit of $5,000 has now spread to a lot more people and created a lot more opportunity for growth. This is known as the <u>multiplier effect.</u> To put the multiplier effect in dollar amounts, we need to know how much we are multiplying by. This is called the <u>deposit multiplyer</u> and the formula is 1/(required reserve ratio). The reserve ratio here is 20% or .2
1/(.2)= 5
Our deposit multiplier which will calculate the multiplier effect on the money supply (aka the amount the bank can "create") is 5
5* $4,000= $20,000
Answer:
D. A conglomerate
Explanation:
A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.
Answer:
a. 15 times
b. 24.3 days
Explanation:
The computation is shown below:
a. Accounts receivable turnover
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
= $3,150,000 ÷ $210,000
= 15 times
b. Number of days sales in receivables = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 15 times
= 24.3 days
Answer:
Export Assistance Cente
Explanation:
Each U.S. Export Assistance Center is staffed by professionals from the SBA, the U.S. Department of Commerce, the U.S. Export-Import Bank, and other public and private organizations. Together, their mission is to provide the help you need to compete in today's global marketplace. Your local U.S. Export Assistance Center is your one-stop shop, designed to provide export assistance for your small- or medium-sized business.
Answer: A deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.
Explanation:
A deferred call provision refers to the provision whereby the calling of a bond before a particular date is prohibited. The bond is known to be call protected during this period.
Therefore, a deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.
