Answer:
The answer is (c) First National Bank is not in a position to extend additional loans.
Explanation:
Please find the below for detailed explanation and calculations:
The First National Bank current reserve ratio is calculated as : Vault cash and deposits of the Bank with the Fed/ Total demand deposits of the Bank = $80 million / $400 million = 20%.
As the First National Bank' reserve ratio is now equal to the Fed's Reserve Requirement, First National Bank can not further extend its loan portfolio's balance, otherwise, its reserve ratio will fall below Fed's requirement which is not acceptable.
So, the answer is (c).
The correct answer in this particular situation would be it increased.
Answer:
D) Quantity sold rose while the effect on price is ambiguous.
Explanation:
Two separate things happened here;
- Change in consumer habits have shifted the the demand curve to the right, increasing the quantity demanded at every price level.
- Better technology and lower costs have also shifted the supply curve to the right, increasing the quantity supplied at every price level.
One thing is certain, the quantity demanded and supplied increased, so the total quantity sold definitely increased. The price issue is not certain because you would need additional information about which shift was larger, the shift of the supply curve or the demand curve.
Answer:
The population of Kosofe local government for 1981 is 704 000.
Explanation:
The solution to the question above is answered in the attached picture.
Answer:
ROE for Bethesda Mining company = 24.28%
Explanation:
ROE using Du Pont = 
×
×
the simple way is to solve the equation before substituting. The asset numerator cancels the asset denominator so does the sales numerator to the sales denominator.
so we are left with ROE = 
= 100,381 / 413348 = 24.28%
