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AnnZ [28]
3 years ago
6

Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Th

e bank sells $5,000 in securities to the Federal Reserve Bank in its district, receiving a $5,000 increase in reserves in return. Instructions: Enter your answer as a whole number. What level of excess reserves does the bank now have?
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

$5,000

Explanation:

New total reserve = Existing reserve + Increase in reserve = $20,000 + $5,000 = $25,000

Required reserve still remains at $20,000 because the sale of securities does not change the checkable deposits,

Therefore, we have

Excess reserves = Actual reserve - Required reserve = $25,000 - $20,000 = $5,000 .

Therefore, level of excess reserves the bank now have is $5,000.

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PIT_PIT [208]

Answer:

The explanation of the three factors and they conclusion are below.

Explanation:

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2 years ago
A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this w
mixas84 [53]

Answer:

pooling losses

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8 0
3 years ago
Mr. Green purchased a property with the provision in the sale agreement that the seller would provide him with a warranty deed.
natima [27]

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specific performance

Explanation:

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Today’s job seekers can choose whether to use technology to apply for any job or they can submit paper versions of all documents
strojnjashka [21]
True, Hope this helps :)
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3 years ago
Read 2 more answers
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Answer:

C : debit to Service Charge Expense of $20

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The complete journal entry used to record this transaction would be:

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Dr Cash 980 (assuming the transaction is processed automatically)

Dr Service charge (or Credit card) expense 20

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Since the credit card company is charging you a 2% commission ($20), we must consider it an expense. Remember that all expenses must be debited.

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