If a bank has total deposits of $7,200 and reserves of $1,600: instructions: round to the nearest whole number. (a) what is its
1 answer:
A.) The current reserve ratio is given by the fraction of the bank's total deposits held in reserves.
Given that the bank's total deposits is $7,200 and the reserves is $1,600, the current reserve ratio is given by:
b.) The loan portfolio is given by (total deposit - reserves) / total deposits
Thus, the loan portfolio of the given bank is given by:
Given that the bank's total deposits is $7,200 and the reserves is $1,600, the current reserve ratio is given by:
b.) The loan portfolio is given by (total deposit - reserves) / total deposits
Thus, the loan portfolio of the given bank is given by:
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Given:
Charlie bought a new computer for $450 with his credit card.
He plans to pay the minimum payment of $25 per month.
To find:
The rate of change.
Solution:
Let y be the remaining amount of loan after x months.
Initial amount of loan = $450
Payment of one month = $25
Payment of x months = $25x
Now,
Remining amount = Initial amount of loan - Payment of x months
...(i)
The slope intercept form is
...(ii)
where, m is slope and b is y-intercept.
From (i) and (ii), we get
Therefore, the rate of change is -25 dollars.