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sammy [17]
3 years ago
9

Assume that the reserve ratio is 20% and banks in the system are loaning out all their excess reserve. If people collectively ca

sh out $10 billion from their checking accounts, then the lending ability of the banking system will be_______________.A. increased by $10 billion.B. decreased by $10 billion.C. decreased by $40 billion.D. decreased by $50 billion.
Business
1 answer:
Alex17521 [72]3 years ago
6 0

Answer:

C. decreased by $40 billion

Explanation:

For computing the lending ability, first we have to determine the money multiplier which is shown below:

We know that

Money multiplier = 1 ÷ reserve ratio

                            = 1 ÷ 20%

                            = 5

So, the total cash would be

= $10 billion × $5

= $50 million

Now the lending ability would be

=$50 billion × (1 - 20%)

= $50 billion × 0.80

= $40 billion

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liq [111]

Answer:

Worthy Ships:

Treasury Stock account balance would be $80,000.

Explanation:

Treasury Stock account is a contra account to the Common Stock account.  Using the cost method, the account will have a debit entry and balance of $400,000 in 2023.  In 2024, with the resale of shares, the account will have a credit entry of $320,000.  This would bring the balance to $80,000 at the end of 2024.

8 0
3 years ago
Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company
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Answer:

b. 65,000 units

Explanation:

The computation of the budgeted production in April month is shown below:

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is 60,000 units

Ending inventory units = 75,000 units × 40% = 30,000 units

Beginning inventory units = 25,000 units

Now put these units to the above formula  

So, the units would equal to  

= 60,000 units + 30,000 units - 25,000 units

= 65,000 units

7 0
3 years ago
Should companies be held accountable for actions of decades past, then legal but since made illegal, as their harmful effects be
marishachu [46]

Answer:

No they should not be held accountable.

Explanation:

When the actions were taken in the past it was legal, now that it is illegal the companies should not be held accountable. If they are it will set a bad precedent that will affect a lot of companies.

In the case of GE that did experiments on prisoners to test effects of irradiation however, even if criminal charges are not brought against them, they can face charges. What they did was wrong even if it was legal then.

7 0
3 years ago
Write the sum as a product of two factors 25g + 10f + 5​
ANEK [815]

Answer:

5\times(5g+2f+1)

Explanation:

25g+10f+5

Writing each term in its factors:

(5\times5)g+(5\times2)f+5

We find out that 5 is the GCF of all the terms

Factoring out 5 from the given expression.

5\times(5g+2f+1)

Factors: 5 and (5g+2f+1)

Thus:

25g+10f+5 = 5\times(5g+2f+1)

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3 years ago
Wearing a headset or earplugs while driving is legal
ruslelena [56]
The answer would be B
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3 years ago
Read 2 more answers
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