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Tema [17]
3 years ago
9

Suppose American Bank has​ $500 in deposits and​ $200 in reserves and that the required reserve ratio is 10 percent. In this​ si

tuation, American Bank has A. ​$50 in required reserves. B. ​$50 in excess reserves. C. ​$200 in excess reserves. D. ​$200 in required reserves.
Business
1 answer:
Alekssandra [29.7K]3 years ago
6 0

Answer:

A. ​$50 in required reserves.

Explanation:

Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.

As per given data

Deposits = $500

Reserves = $200

Required Reserve ratio = 10 percent

Required reserve = Reserve required / Total Deposit

0.1 = Reserve required / $500

Reserve Required = $500 x 0.1

Reserve Required = $50

Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150

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Answer:

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The gain of the sale of 2000 shares can be calculated by subtracting the basis in the shares from the cost price. the cost of shares = ( $24000 / 12000 ) = $2 per share

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Explanation:

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If demand for a good falls, but the opportunity cost of making the good increases, then production of the good will:________
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In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the
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Answer:

Lemons Company

a. Total amount of payroll checks = 920

amount of purchase requisitions = 12,500

b-a                  Residential      Commercial     Government  Total

Payroll         $32,832               $19,152          $10,944        $62,928

b-b  Purchasing

 Costs        $17,688                 $4,717              $7,075      $29,480

c. Residential's service department charge is __higher__ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a __higher__ number of payroll transactions.

Explanation:

a) Data and Calculations:

Cost of the Payroll Department = $62,928

Cost of the Purchasing Department = $29,480

                               Residential      Commercial     Government  Total

                                                                                     Contract

Sales                      $2,000,000     $3,250,000      $2,900,000 $8,150,000

Weekly payroll

(52 weeks per year)      400                     250                     150            800

Monthly payroll                 80                       30                        10             120

Total                               480                      280                     160            920

Number of purchase

 requisitions per year 7,500                 3,000                 2,000        12,500

a. Total amount of payroll checks = 920 (800 + 120)

Total amount of purchase requisitions = 12,500

b-a                  Residential      Commercial     Government  Total

Payroll         $32,832               $19,152          $10,944        $62,928

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b-b  Purchasing

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      (7,500/12,500 * $29,480) (2,000/12,500 * $29,480) (3,000/12,500 * $29,480)

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Percentage 54.7%                  25.8%              19.5%         100%

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Answer:

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