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blondinia [14]
3 years ago
7

If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent

receives a deposit of $400 it has a a. $400 increase in excess reserves and no increase in required reserves. b. $400 increase in required reserves and no increase in excess reserves. c. $360 increase in excess reserves and a $40 increase in required reserves. d. $40 increase in excess reserves and a $360 increase in required reserves.
Business
1 answer:
Misha Larkins [42]3 years ago
4 0

Answer:

 c. $360 increase in excess reserves and a $40 increase in required reserves

Explanation:

Required reserves is the amount of reserves that is required by the Central bank that banks should keep.

Required reserve = reserve ratio × deposit

= 0.1 × $400 = $40

Excess reserve is the amount of reserves kept in excess of the required reserves.

Excess reserve = Deposit - Required reserve = $400 - $40 = $360

I hope my answer helps you

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Answer:

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6 0
3 years ago
The management of Metro Printers is considering a proposal to replace some existing equip- ment with a new highly efficient lase
Veseljchak [2.6K]

Answer:

Net present value of proposal $168,166

Explanation:

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3 0
3 years ago
Firm M's earnings and stock price tend to move up and down with other firms in the S&P 500, while Firm W's earnings and stoc
sweet-ann [11.9K]

Answer:

The answer is letter C.

Explanation:

The correct statement is If M and W merge, then the merged firm MW should have a WACC that is a simple average of M's and W's WACCs.

3 0
2 years ago
Sophie Company is considering closing one of its product lines. Current data on the product line are as follows. Sales revenue $
suter [353]

Answer:

Company's net income will increase by $2500 if the product line is discontinued.

Explanation:

From the data given:

Sales                                      25000

variable cost (less)                 19000

contribution margin               6000

Fixed costs

directed fixed costs                7000

allocated fixed costs               5000

net income                             -6000

Fixed cost savings                   7000

rental revenue                           1500

total savings if discontinued    8500

contribution margin (less)         6000

net income increased by          2500

5 0
3 years ago
Selected transactions for the Hamilton Company are listed below.1. Collected accounts receivable.2. Declared and paid dividends
Allisa [31]

Answer:

1. Collected accounts receivable =  (a) an operating activity

2. Declared and paid dividends on common stock = (c) a financing activity

3. Sold long-term investments for cash = (b) an investing activity

4. Issued stock for equipment = (d) a noncash investing and financing activity

5. Repaid five year note payable = (c) a financing activity

6. Paid employee wages = (a) an operating activity

7. Converted bonds payable to common stock = (d) a noncash investing and financing activity.

8. Acquired long-term investment with cash = (b) an investing activity

9. Sold buildings and equipment for cash = (b) an investing activity

10. Sold merchandise to customers = (a) an operating activity

Explanation:

The Operating Activities include those activities that occurs within the course of business.

The Investing Activities include any cash movement in capital expenditure items.

The Financing Activities included activities that involve sourcing of funds and changes in ownership activities.

5 0
3 years ago
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