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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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Northrup-Grumman Corporation is expected to pay $1.25 per share for its next dividend. If shares are trading at $27.22 and analy
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Answer:

the  return on common shares is 6.99%

Explanation:

The computation of the return on common shares is shown below:

= Dividend ÷ Stock price + growth rate

= $1.25 ÷ $27.22 + 2.4%

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hence, the  return on common shares is 6.99%

We simply applied the above formula so that the correct value could come

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When a company issue 27,000 shares of $5 per value common stock,the journal entry for this issuance would include:
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1. A debit to cash for $135,000

Explanation:

The complete entries are

1. A debit to cash for $135,000

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3 years ago
When​ Elle's Espresso Bar raised its price by 10​ percent, the quantity of coffee that Elle sold decreased by 40 percent. When E
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<em><u /></em>

7 0
3 years ago
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If you borrow money from a bank, you are the ____________. A. Creditor B. Lender C. Debtor D. Investor
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Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of u
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Answer:

The variable costing unit product cost was <u>$69.</u>

Explanation:

Variable Product Costing is a situation whereby only the variable costs of production is taking into account to estimating the cost per unit of a product. This implies that none of the fixed cost will be included in the cost of the product.

Based on the explanation above, the variable costing unit product cost to produce a single product by Kray Inc. can be calculated as follows:

Kray Inc.

Calculation of Variable Costing Unit Product Cost

<u>Particulars                                                          Amount ($)     </u>

Direct materials                                                        40

Direct labor                                                               19

Variable manufacturing overhead                           8

Variable selling and administrative expense     <u>     2      </u>

Variable cost per unit                                          <u>     69     </u>

Therefore, the variable costing unit product cost was <u>$69.</u>

5 0
2 years ago
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