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belka [17]
3 years ago
10

Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv

e ratio is 20%. The Federal Reserve buys a government bond worth $1,500,000 from Manuel, a customer of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.
Complete the following table to reflect any changes in First Main Street Bank's T-account.
Assets Liabilities
Reserves/deposits/net work/loan Reserves/deposits/net work/loans
Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 20%.
Hint: If the change is negative, be sure to enter the value as negative number.
Amount Deposited Change in Excess Reserves Change in Required Reserves
(Dollars) (Dollars) (Dollars)
Now, suppose First Main Street Bank loans out all of its new excess reserves to Latasha, who immediately uses the funds to write a check to Jake. Jake deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Nick, who writes a check to Rosa, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Alyssa as well.
Fill in the following table to show the effect of this ongoing chain of events at each bank.
Increase in Deposits Increase in Required Increase in
Reserves Loans
(Dollars) (Dollars) (Dollars)
First Main Street Bank
Second Republic Bank
Third Fidelity Bank
Business
1 answer:
sergey [27]3 years ago
4 0

Answer:

hmmmmmmmmmmmmm

Explanation:

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Assume that you purchase a 6-year, 8% certificate of deposit for $1,000. If interest is compounded annually, what will be the va
Dmitry [639]

Answer:

$ 1,586.8743

Explanation:

Calculation to determine what will be the value of the certificate when it matures

Compounded annually

Principal P= 1000

Rate r=0.08

Period n = 6

Using this formula

A = P (1+r)^n

Let plug in the formula

1000 (1.08)^6

= 1586.8743

Therefore what will be the value of the certificate when it matures is $1586.8743

8 0
3 years ago
What does SSQ stand for?
mixer [17]

Answer:

Special Skills Qualification (most likely)

Explanation:

There are many different things it could stand for, however since you did not specify the context of this, I am assuming it would be this as it is most common.

5 0
2 years ago
Read 2 more answers
Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared.
DerKrebs [107]

Answer:

Net income = $3,560

Explanation:

                                       Romney's Marketing Company

                                        Multi-step income statement

                               For the Year ended December 31 20YY

Sales revenues 37,250

Less: Cost of goods sold = 0

Gross profit                                                          = 37,250

Less: Operating expense:

Wages expense                                 = $19,000

Depreciation expense                       = $1,750

Utilities expense                                = $320

Insurance expense                            = $780

Rent expense                                     = $9,800

Total operating expense                   = ($31,650)

Add: operating income:

Rent revenue                                      =  $560

Total operating income                                         = $6,160

Other operating income

Interest revenue                                                    = 160

Net income before taxes                                      = $6,320

Income tax expense                                              = $2,760

Net income                                                             = $3,560

4 0
3 years ago
10
Kaylis [27]

Answer:

Why did you choose to become a mechanic?: Practice your interviewing skills.

In what ways is my résumé lacking if I want to

find a position as a mechanic?: Get advice and information.

Can I contact you with any other questions

that I may have?: Build your professional network.

Explanation:

Plato

4 0
2 years ago
The price elasticity of demand measures the​ ________ that results from a​ ________.
iogann1982 [59]
<span>The price elasticity of a demand measures the percentage change in the quantity demanded that results from a  percentage change in price.

hope it helps!!</span>
4 0
3 years ago
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