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Simora [160]
3 years ago
6

A commercial bank has no excess reserves until a depositor places $2,000 in cash in the bank. The reserve ratio is 10 percent. T

he bank then lends $1,500 to a borrower. As a consequence of these transactions, the bank's excess reserves are
A. not affected.
B. increased by $200.
C .increased by $300.
D .increased by $500.
Business
1 answer:
guapka [62]3 years ago
8 0

Answer:

Option (C) is correct.

Explanation:

Based on given information, the bank's excess reserves occurs when $2,000 is deposited in the bank as a form of cash.

The reserve ratio = 10%

                             = 0.1

Bank's reserve = Deposit amount × Reserve ratio

                          = $2000 × 0.1

                          = $200

Bank lends to a borrower = $1500

So, bank's excess reserve:

= Deposit amount - Bank's reserve - Bank's lending amount

= $2,000 - $200 - $1,500

= $300

Therefore, as a consequence of these transactions, the bank's excess reserves are increased by $300.

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Aleksandr-060686 [28]
Debt
Fraud
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5 0
3 years ago
The process of a company gathering information about the competitive environment, including competitor’s plans, activities and p
jeyben [28]

Answer:

The correct answer is competitive intelligence.

Explanation:

Competitive intelligence is the systematic collection of open information, which once combined and analyzed provides a better understanding of the structure, culture, behavior, capabilities, and weaknesses of a competitor's firm.  

It is a very important activity because it helps companies to better understand how the business works. This way you can learn to be better than your competitors.

Companies use competitive intelligence to compare themselves with others, allowing them to make informed decisions. Most firms today realize the importance of knowing what their competitors are doing, and the information collected allows organizations to find out about their strengths and weaknesses.

3 0
3 years ago
Phoenix Agency leases office space for $7,700 per month. On January 3, Phoenix incurs $105,600 to improve the leased office spac
nadezda [96]

Answer:

$13,200 per year

Explanation:

Amount incurred to improve the office space = $

Improvement expected to yield benefit = 10 years

Remaining life on it's lease = 8 years

Since the office space is not going to remain with Phoenix after the lease period, it means that the improvement expenses will be expensed over the remaining lease period I.e 8 years.

Therefore, the amount of expense that should be recorded the first year related to improvements can be calculated as;

= Amount incurred to improve the office space ÷ remaining life on its lease

= $105,600 ÷ 8

= $13,200 per year

7 0
3 years ago
Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding
Burka [1]

Answer:

$2.73

Explanation:

<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>

where,

Earnings Attributed to Common Stockholders = $420,000

and

Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000

therefore,

Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73

Conclusion

Rudyard's diluted EPS is $2.73

7 0
2 years ago
Decision Point: Considering Alternatives Because of your inexperience, you don't know how many alternatives should be considered
Ber [7]

Answer:

The answer is stated below:

Explanation:

Select a limited number of alternatives to consider: For example, considering the top 3 alternative suppliers.

Then generate or create a list of as many as possible of alternative suppliers.

Rely on the gut in order to make a decision regarding the right number of alternatives when you feel the time is right.

Deciding or choosing the limited number of alternatives , this concept is known as the bounded rationality. For most of the businesses, this is the most realistic approach for dealing with alternatives.

5 0
3 years ago
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