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
natka813 [3]
3 years ago
6

The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. I

f the reserve requirement is 8.5 percent, how much is the bank holding in excess reserves?
Business
1 answer:
tigry1 [53]3 years ago
4 0

Answer:

The bank is holding $19.5 million in excess reserves.

Explanation:

If the bank has $300 million is deposits and the reserve ratio is 8.5% then the bank needs to have minimum reserves of 8.5% of 300 million so the minimum reserves are 0.085*300 million = 25.5 million

How ever the actual reserves of the bank is the difference between deposits and loans. The deposits are 300 million and loans are 255 million so the actual reserves are 300 million-255 million= $45 million

Excess reserves is the difference between the actual reserves and the minimum reserves so 45 million - 25.5 million = 19.5 million.

You might be interested in
A country finds itself in the following situation: the government budget surplus is 2% of its GDP; private savings is 30% of GDP
DaniilM [7]

Answer:

The current account deficit will increase from 1% to 31% of GDP.

Explanation:

National saving and investment identity helps in understanding the determinants of trade and current account balance. The current account is in balance when the quantity demanded of financial capital is equal to the quantity supplied of financial capital.  

Here, the government saving or surplus and private savings are the supply of financial capital and investment indicates demand for financial capital.

The current account balance is

= Supply of capital - Demand for capital

= (30 + 2)% - 33%

= 32% - 33%

= -1%

So the current account is in deficit by 1% of GDP.  

If the private savings becomes zero, the current account balance will be

= Supply of capital - Demand for capital

= 2% - 33%

= -31%

The current account will be in deficit by 31%.

8 0
3 years ago
if potential output declines while actual output remains unchanged, what does the Taylor rule imply that policymakers should do
Gekata [30.6K]

Answer:

Increased

Explanation:

In the case when there is a fall in the potential output and at the same time the actual output remains the same so here the fund rate should be increased as per the taylor rule as it decrease the output that result in the output gap to fall

So as per the given situation, the fed fund rate should be increased

Hence, the same is to be increased

4 0
2 years ago
Equity method for stock investment Obj. 3 Show Me How icon At a total cost of $5,600,000, Herrera Corporation acquired 280,000 s
marusya05 [52]

Answer and Explanation:

The journal entries are shown below:

1 Investment in Tran Corp $210,000  

         To Investment Income (280,000 ÷ 800,000 × $600,000)  $210,000

(Being the investment in Tran corp. is recorded)  

For recording this we debited the investment in tran corp as it increased the assets and credited the investment income as it also increased the revenue

2 Cash (280,000 × $0.50) $140,000  

           To Investment in Tran Corp  $140,000

(Being the payment of cash dividend is recorded)  

For recording this we debited the cash as it increased the assets and credited the investment in tran corp as it decreased the assets

(B) The equity method is appropriate as the Herrera owns 35% which come from

= $280,000 ÷ $800,000

= 35%

And it can be exercised when there is a significant influence or effect over the investor

6 0
3 years ago
To a retail business owner, what is “cost”
hammer [34]
Entrepreneur magazine reports startup costs between $2,000 and $50,000 for different retail enterprises, from antique furniture sales to musical equipment sales. A figure of $30,000 to launch a retail operation is a good median number to work with.
totally answer
4 0
3 years ago
Read 2 more answers
To whom should your family talk about enrolling in a 529 plan or a Coverdell Education Savings Account?
strojnjashka [21]
Financial planner will be able to go over the benefits and restrictions of a 529
6 0
3 years ago
Read 2 more answers
Other questions:
  • Noreen is extremely happy to be working at QBiz. They are a socially conscious, community-focused company. Noreen knows that her
    8·1 answer
  • If you illegally drive without a drivers license you may be fined up to $______ for your first conviction.
    6·1 answer
  • Some entrepreneurs Invent Innovative
    7·1 answer
  • Lila believes the global climate is changing. every​ storm, every volcano​ eruption, every earthquake​ is, in her​ mind, evidenc
    8·1 answer
  • How do you suppose the demographics of an aging population of "baby boomers" in the united states will affect the demand for mil
    14·1 answer
  • In 2017, a marketing manager for new balance's minimus golf shoe needs to forecast sales through 2019. she begins with the known
    13·1 answer
  • Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a
    15·1 answer
  • I WILL GIVE BRAINLIEST
    13·1 answer
  • M Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 380,
    8·1 answer
  • My question is how much do you love Jesus
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!