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Inessa [10]
3 years ago
14

Suppose you deposit ​$2 comma 5002,500 cash into your checking account. By how much will checking deposits in the banking system

increase as a result when the required reserve ratio is 0.11​0? The change in checking deposits is equal​ to: ​$nothing ​(enter your result rounded to the nearest dollar​).
Business
1 answer:
algol133 years ago
3 0

Answer:

The change in checking deposit is equal to $22,727.27.

Explanation:

An amount of $2,500 is deposited in a checking account.

The required reserve ratio is 0.11 or 11%.

A part of this deposit will go to the required reserve and the rest will be added in the checking deposit of the bank.

The change in the checking deposits will be

= \frac{1}{RR} \times amount deposited

= \frac{1}{0.11}\times \$ 2,500

= $22,727.27

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Answer:

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Capital gain from from redemption is treated as short term

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Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

4 0
2 years ago
To be productive in a new job, what can you safely ignore
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4 0
3 years ago
Read the following email, which Jim sent to his team. Then choose the answer below that best explains what is wrong with the ema
mars1129 [50]

Answer and Explanation:

The subject of the email is too long and contains all the information. The subject should have been: Proposal draft due on Friday. Rest of the information should have been included in the body of the email.

8 0
2 years ago
The time value of money theory consists in four beliefs: (1) Investment risk is important; (2) money today is worth more than mo
Schach [20]

Answer:

The four beliefs are true. But accuracy is demanded

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1 Investment risk is important ir order to estimate the likelihood of occurrance of  losses in the future.

2. money today is worth more than <em>the same amount </em>of money tomorrow.

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4 0
3 years ago
A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been
tekilochka [14]

Answer:

The company paid $278,031

Explanation:

Giving the following information:

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%.

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PV= $278,031

3 0
2 years ago
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