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Likurg_2 [28]
3 years ago
6

Suppose that Karen deposits $500 into her checking account at the bank. The reserve requirement for Karen's bank is 12%. Assume

the bank does not want to hold any excess reserves of new deposits. a. Use this information to complete the balance sheet below to show how the bank's assets and liabilities change when Karen deposits the $500. Instructions: Enter your answers as a whole number. A Simple Bank Balance Sheet Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $ b. Why are deposits considered liabilities for a bank? Deposits can be loaned out by the bank. The bank must pay interest on deposits. The bank must hold deposits as reserves at the Federal Reserve. Deposits can be withdrawn at any time.
Business
1 answer:
Jlenok [28]3 years ago
5 0

Answer:

a)Bank deposit increase by $500

b)Bank reserve increase by $60

c)Funds available for loan increase by $440

d) Deposit can be withdrawn anytime

Explanation:

Deposit = $500

Change in reserve = 12%* $500 = $60

Change in deposit = $500

Change in loan = (100-12)%*500 = $440.

Deposit is like a loan given to the bank as the bank uses these money for her transactions . This money can be requested for withdrawal by the depositor at any time, This makes it a type  of liability to the bank

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The beginning capital balance shown on a statement of owner's equity is $80,000. Net income for the period is $35,000. The owner
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Answer:

Correct option is (B)

Explanation:

Given:

Beginning capital = $80,000

Net income = $35,000

Drawings = $18,000

Net income is added to opening capital and deduct drawings to arrive at capital balance at the end.

Capital at the end of the year = opening capital + net income - drawings

                                                 = 80,000 + 35,000 - 18,000

                                                 = $97,000

7 0
3 years ago
Treasury stock that was purchased for $2,500 is sold for $3,000. As a result of these two transactions combined, a.income will b
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Answer:

The stockholder's equity will be increased by $500

Explanation:

While stockholders equity is the amount of assets available to shareholders after all liabilities have been settled , treasury stock is the stock that is bought back by the issuing organisation with the aim of reducing the number of outstanding stock in the open market.

Looking at the scenario given , it was an indirect way of raising fund and increasing the equity of the stockholders equity as the treasury stock was later resold at a higher price.

Therefore , the stockholder's equity increases by 3,000- 2500 = 500

4 0
3 years ago
True or false: The loss on the sale of a principal residence is classified as a deductible capital loss.
nadezda [96]
The answer is true not false
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When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies o
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Answer:

d. where price is equal to average fixed cost.

Explanation:

Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.

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A strategic alliance: Group of answer choices A) involves two or more companies joining forces to pursue vertical integration. B
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Answer:

B. is an agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence

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A strategic alliance is an agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence

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