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
sweet-ann [11.9K]
3 years ago
12

Today's US banking system ensures that if everybody who has money on deposit in the banks

Business
1 answer:
zheka24 [161]3 years ago
6 0

Answer:

False

Explanation:

Not all depositors will get their cash. The FED, which is the body that regulates commercial banks, requires the banks to keep only a small percentage of customers deposits in their custody. The percentage maintained in the banks is known as the reserve.  The percentage of the reserves requirement varies with time.

If all depositors decide to withdraw at once, they can not get their money as only the reserve amount will be available in the banks. Commercial banks usually lend out the rest of the customers' deposits to make profits.

You might be interested in
White Company acquires a new machine (seven-year property) on January 10, 2019, at a cost of $620,000. White makes the election
alukav5142 [94]

Answer: the correct answer is $620,000.

Explanation: Section 179 Increased to One Million for 2018: Jan 2, 2018 – With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.

3 0
3 years ago
Read 2 more answers
If an investment is considered ���volatile���, it means... athe investment will experience rapid growth over time. bthe value of
Ann [662]
The value of the investment could be unpredictable when the investment is volatile. To add up, the fluctuation patterns of the value could be a lot different than it should be. It can be observed in a graph that the curve just suddenly rises and falls covering only a smaller amount of time.
4 0
3 years ago
Read 2 more answers
The strategy canvas for movie theaters includes factors such as prices, comfort, customer service, concessions variety, and hour
zzz [600]

Answer:

The correct answer is B

Explanation:

Value curve is the one which states graphically, the way or manner or method, in which the industry or the company configures the products or the services to its customer. This is a powerful as well as effective tool in order to create the new market spaces.

So, the strategy which the company should use in order to make themselves as a differentiator by offering the high customer service, high price, high concessions, low operation hours and the high level of the comfort to the customers.

5 0
3 years ago
Assume the reserve requirement is 15 percent and a bank initially has no excess reserves. If a customer deposits $1,000, how muc
dimaraw [331]

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

3 0
3 years ago
On July 22, a company that uses the perpetual inventory system purchased merchandise inventory at a cost of $5,250 with credit t
Mariulka [41]

Answer:

The correct answer is option D

Explanation:

The reason is that the inventory purchases are record at the cost not at the cost less discount value.

When the company gets the settlement discount it must be accounted for as decrease in purchases price not in quantity and must be credited with the discount received against the accounts payable.

Debit  Accounts Payable 5,250

Credit        Merchandise Inventory 105

Credit                                        Cash 5,145

6 0
3 years ago
Other questions:
  • Cost of goods sold is computed from the following equation:
    7·1 answer
  • If estimating the amount of time to design a new​ product, should you err on the high side or the low​ side?
    8·1 answer
  • The fiscal deficit of the country Zoldova has been increasing at an alarming rate for the last decade. One of the major reasons
    6·1 answer
  • When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Invent
    5·1 answer
  • On May 10, a company issued for cash 1,500 shares of no-par common stock (with a stated value of $2) at $14, and on May 15, it i
    10·1 answer
  • A jet ski depreciates at 11% of its original value each year. If the jet ski was $8000 at its time of purchase, what is the valu
    5·1 answer
  • If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
    12·1 answer
  • Whispering Winds Corp. had the following transactions. 1. Sold land (cost $7,200) for $9,000. 2. Issued common stock at par for
    6·1 answer
  • Which sentence describes a benefit that short term disability insurance offers a policyholder
    6·1 answer
  • The percentage change in quantity demanded relative to a percentage change in price is known as ______.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!