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galben [10]
3 years ago
6

Suppose the Federal Reserve increases bank reserves and banks lend out some of these reserves, but at some point banks still hav

e $5 million more they wish to lend out. If the reserve requirement is 10 percent, how much more money can banks create if they lend out the remaining amount?
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
6 0

Answer:

Bank's reserves are 500,000 dollars and the remaining part is available for banks to place it in the form of loans

Explanation:

Bank's obligatory reserves that they must hold in their accounts is 10% out of disposable amount, meaning if the amount is 5,000,000 dollars, then reserves are 500,000 dollars. The remaining part is disposable and banks can use it to grant loans. These reserves are held at the banks, but also in their accounts with central bank. Banks are obliged to hold these reserves due to provisions by regulatory organs.

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What concerns might a gap employee working in one of its stores have because of its social stance?
DochEvi [55]

There are many concerns that gap employees because of its social stance.

Gap employees may not be convinced there efforts are the one that took the organisation and making the environment a better working place. Workers have filed a problem in case of female abuse and behaviour.

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6 0
1 year ago
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com
solong [7]

Answer:

4 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow.

Initial Investment = $280,000

Net Income = $20,000

To calculate the net cash flows add bask the depreciation expense in Net income each year.

Depreciation = ($280,000 - $30,000) / 5 = $50,000

Net Cash Flow = $20,000 + $50,000 = $70,000

Payback period = Initial Investment / yearly cash flow = $280,000 / $70,000 = 4 years

5 0
3 years ago
Bond prices are _______ sensitive to changes in yield when the bond is selling at a _______ initial yield to maturity.
Delvig [45]

Answer: more; lower

Explanation:

The yield to maturity is the annual rate of return for a bond which has been estimated as long as the bind is being held by the investor till it matures.

It should be noted that Bond prices are more sensitive to changes in yield when the bond is selling at a lower initial yield to maturity.

7 0
3 years ago
Parker Corp., which operates on a calendar year, expects to sell 3,000 units in October, and expects sales to increase 10% each
pogonyaev

Answer:

total revenue = is 99300

Explanation:

given data

expects to sell in October = 3,000 units

expects sales to increase  = 10%

Sales price stay constant = $10 per unit

solution

we get revenue hereby the sum of revenue of oct + nov + dec

revenue = price × quantity    .........................1

total revenue = is 99300

8 0
2 years ago
Suppose Troutsville (population of 4) wants to put on a firework display. Leslie would get $40 worth of benefit, Mark would get
nasty-shy [4]
I think that the answer is A but i have no clue i’m so sorry :(
3 0
3 years ago
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