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
Anuta_ua [19.1K]
3 years ago
12

Assume that the reserve requirement is 20 percent. First National Bank has vault cash and deposits with the Fed of $80 million,

loans and securities of $320 million, and demand deposits of $400 million. First National: a. ​ could extend a maximum of $10 million of additional loans. b. ​ could extend a maximum of $20 million of additional loans. c. ​ is not in a position to extend additional loans. d. ​ could extend a maximum of $40 million of additional loans.
Business
1 answer:
drek231 [11]3 years ago
3 0

Answer:

The answer is (c) First National Bank is not in a position to extend additional loans.

Explanation:

Please find the below for detailed explanation and calculations:

The First National Bank current reserve ratio is calculated as : Vault cash and deposits of the Bank with the Fed/ Total demand deposits of the Bank = $80 million / $400 million = 20%.

As the First National Bank' reserve ratio is now equal to the Fed's Reserve Requirement, First National Bank can not further extend its loan portfolio's balance, otherwise, its reserve ratio will fall below Fed's requirement which is not acceptable.

So, the answer is (c).

You might be interested in
Ten reasons why we need to have laws for business's
Anika [276]
1. To define unacceptable behavior.
2. To provide certainty & stability.
3. To protect the public.
4. To provide mechanism for businesses to resolve disputes.
5. Law gives everyone a framework for how to ace and operate.
6. To make better decisions.
7. To sue & be sued.
8. To balance harm done by the offender against the individual and society at large.
9. To collect and generate revenue from the masses.

Just need one more sorry
8 0
4 years ago
Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap g
xz_007 [3.2K]

Answer:

b. blue ocean strategy

Explanation:

Instead of competing against rival companies in the mass-produced games market (red ocean), Adam is carving out his own market by offering the consumer a higher end product that, although is still composed of games, consists a in whole new segment with much less competition, if any (blue ocean).

Therefore, the correct answer is b. blue ocean strategy

4 0
3 years ago
Read 2 more answers
True or false?columbus's return voyage took longer than his outward voyage
zaharov [31]
That is false, he took a lot more time trying to find India and instead found America
7 0
3 years ago
Read 2 more answers
The type of listing agreement that provides for payment of a commission to the broker even though the owner makes the sale witho
nasty-shy [4]

The type of listing agreement that provides for payment of a commission to the broker even though the owner makes the sale without the broker's aid is called an exclusive right to sell a listing.

Listing of exclusive distribution rights

Listing of exclusive distribution rights is the most commonly used contract. In this type of listing agreement, an agent is appointed as the sole agent of the seller and has exclusive authority to represent the property.

A California Realtor Listing Agreement is an agreement that authorizes a broker to sell an owner's property on their behalf. The contract allows them to list the property, but in most cases gives them exclusive rights to the property transaction and potentially earnable commissions.

Learn more about listing agreement here: brainly.com/question/8186569

#SPJ4

5 0
2 years ago
The information needed to make the journal entries to record the wages and salaries expense comes from
babymother [125]
The answer is The Payroll Register.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah
    6·1 answer
  • Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test. Next, i
    6·1 answer
  • He should sell at a cheaper price on the website to attract more customers true or false?​
    5·1 answer
  • Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one
    6·1 answer
  • ______ power results from one's specialized information.
    7·1 answer
  • What action is most likely to result in an increase in the money supply
    13·1 answer
  • Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
    15·1 answer
  • A belief that something will be the case or will happen is known as:
    8·1 answer
  • Kinnamont Company manufactures farming equipment that includes navigational systems as part of the standard equipment package an
    15·1 answer
  • Andrews corporation has income from operations of $227,000. in addition, it received interest income of $22,700 and received div
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!