1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Novosadov [1.4K]
2 years ago
8

A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with Fed, and $5 million in

government securities. The reserve ratio is 20 percent. A new deposit is made million. What is the maximum size loan the bank can make once the check clears?
a.$800,000
b.$5.8 million
c.0
d.$1 million
Business
1 answer:
yuradex [85]2 years ago
8 0

Answer:

A) $800,000

Explanation:

Since the current reserve ratio is 20%, and the bank has no excess reserves, then the maximum it can lend if it receives $1 is $800,000.

The bank has currently $50 million in deposits and $10 million in reserves ($6 million in cash and $4 million in the Fed), so its reserves are exactly 20% of its total deposits. So if any new deposits are received, the bank will have to keep as reserves 20% of it (= $1,000,000 x 20% = $200,000).

This type of banking system is called the fractional banking system because banks are only required to keep a fraction of the money they receive as deposits and they can lend the rest to other clients.

You might be interested in
The West European buyers who purchase and resell Entrée Specialités’ food products in their home countries are in the _____ busi
defon

Answer:

The correct answer is letter "A": importing.

Explanation:

Importing activities involve businesses or individuals purchasing goods from manufacturers abroad with the purpose of reselling those goods or for personal use. Importing goods imply paying tariffs on those products as a way to protect national businesses.

5 0
2 years ago
All of the following are correct statements about transfers between divisions located in countries with different tax rates exce
IceJOKER [234]
I think it’s A .................
3 0
3 years ago
Which of the following is a good time management technique
Sauron [17]
A. Knowing how to prioritize
4 0
2 years ago
Read 2 more answers
Using the scrum method overcomes the issues of the traditional SDLC and guarantees that a project will produce a high-quality pr
jolli1 [7]

The term scrum is borrowed from rugby, wherein it is a formation of gamers.

Scrum is a framework for undertaking management that emphasizes teamwork, duty, and iterative progress toward a properly-described goal. The framework starts with an easy premise: start with what can be visible or acknowledged. After that, tune the development and tweak, as necessary.

The term scrum turned into selected by the paper's authors because it emphasizes teamwork.

The scrum method is based on a hard and fast of very defined practices and roles that need to be worried for the duration of the software development method. it's miles a flexible methodology that rewards the software of the concepts in a context agreed upon by means of all of the crew members of the product. There may be ample proof that adherence to bendy practices and values ​​improves the power of software program specialists, teams, and corporations, but the evidence is diverse and hard to find inside the traditional SDLC.

Learn more about scrum here: brainly.com/question/27960967

#SPJ4

7 0
2 years ago
Olivia was returning from her break when her boss saw her and stated, "I noticed your break was especially long this afternoon."
mamaluj [8]

The given change in Olivia’s work presentation happened because of Filtering

<u>Explanation: </u>

A communication barrier is something that stops us from accessing and interpreting communications that other people use to communicate their knowledge, thoughts, and ideas.

Filtering is a transmitter that handles information in this way the recipient would be included more favorably. The number of rates in an organization's framework is the main factor in determining of the filtering. Filtering also happens when the recipient of the message enables multiple persons to pass the information before reaching their final destination.

A Few examples of filtering have included a manager who leaves her boss, the vice-president, in the midst of the bad news, with the poor sales statistics from her division.

6 0
3 years ago
Other questions:
  • What percentage of american employees work for an employer that does not offer a traditional pension or retirement plan?
    11·1 answer
  • Because budgeted fixed costs remain the same regardless of production volume, a(n):________ variance occurs when there is a diff
    15·1 answer
  • According to the PPC, as we produce more military goods and our resources remain constant, what will happen to the production of
    8·1 answer
  • Which action is LEAST important to maintaining a healthy credit score?
    5·1 answer
  • Costing the type of job costing​
    15·1 answer
  • Although people with high incomes appear to be happier than those with low incomes, people in the United States in general have
    12·2 answers
  • Which is one of the reasons marketing is essential to the free market system?
    10·2 answers
  • Yojayna works for a manufacturing company. She meets with her boss once a week to review how well the company is meeting the tac
    8·1 answer
  • We describe the flow of costs in a process costing system and prepare appropriate journal entries to record costs. A process cos
    11·1 answer
  • If there is allocative efficiency in a purely competitive market for a product, the maximum price consumers are willing to pay i
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!