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fiasKO [112]
3 years ago
14

Assume the reserve requirement is 15 percent and a bank initially has no excess reserves. If a customer deposits $1,000, how muc

h of that deposit can be loaned?
Business
1 answer:
dimaraw [331]3 years ago
3 0

Answer:

$850

Explanation:

Firstly, we calculate the amount of the deposited amount that should be held in the bank reserves. According to the question, this is just 15% of the amount deposited.

This is same as 15/100 * 1000 = $150

Since $150 is kept in reserve, the amount that can be loaned is thus $1000-$150 = $850

It is this $850 that is in excess reserve

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When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation
erastovalidia [21]

Answer:

the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.

Explanation:

Let me use an example to illustrate this.

An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0

If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250

The net book value halfway through its useful life = $1000 - ($250 x 2) = $500

If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500

The net book value at the beginning of year 2 = $1000 - $500 = $500

Depreciation expense in year 2 = 2/4 x $500 = $250

The net book value at the beginning of year 3 = $500 - $250 = $250

We can see that the net book value halfway through the useful is lower when double declining depreciation method is used

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3 years ago
True or fales Data entry in the patient record is a combination of structured and unstructured dat
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3 years ago
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In a bad news message the reasons for the decision
zmey [24]

Answer:

should be long and roundabout to cushion the negative aspects

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3 years ago
When the balance of an equity account, like Capital Stock, increases, it means that the account has been: Multiple Choice Deposi
Soloha48 [4]

Answer:

Credited

Explanation:

Equity Account <em>increase</em> on the credit side and <em>decrease </em>on the debit side.

So, when the account increased, we say it has been credited. This means further stock has been issued to new or existing owners.

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You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in t
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(d) Gear is more efficient than Cog.

Explanation:

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3 years ago
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