Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.
Reserve ratio = 20% = 20/100 = 0.25
Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000
Reserve ratio = Rerserve / Deposit
=> Reserves = 0.25*100,000 = 25,000
Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio
= $ 400,000 + 100,000
= $ 500,000.
The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to
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Answer:
c. has a greater proportion of fixed costs to variable costs.
Explanation:
Operating leverage refers to the how or the means through which firms or organization can increase their operating income by increasing their revenue generation. As a way, more quantity of goods has to be sold to make up the cost.
In other words, operating leverage is a way of determining a business break even point.
Answer:
9.75%
Explanation:
EPS = Earning per share = $5
DPS = Dividend per share $1.25
ROI = return on investment = 13%, or 0.13
RR = Retention rate = (EPS - DPS)/EPS = ($5 - $1.25)/$5 = 0.75, or 75%
Growth = RR * ROI = 13% * 75% = 9.75%
Therefore, the expected growth rate for KTI's dividend is closest to 9.75%
the answer would be $2,000.00 because that is what your going to owe in a year you are getting one year interest free
Answer:
Brand licensing Strategy
Explanation:
Brand licensing is an agreement whereby a company is given the permission to produce or market products using the brand of an original owner. It involves leasing out or renting out a brand name to another company. It is the process whereby a licensor gives permission to licensee to use the licensor brand name in the licensee products and services. In this scenario, Harley Davidson, the licensor allows gives manufacturers his brand name to be use in their products in exchange of royalties of the sales of the licensee products.
