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snow_tiger [21]
3 years ago
8

Suppose a bank already has excess reserves of $800 and the reserve ratio is 30%. If Andy deposits $1,000 of cash into his checki

ng account and the bank lends $600 to Melanie, that bank can lend an additional:
Business
1 answer:
Vadim26 [7]3 years ago
7 0

Answer:

$900

Explanation:

Given that,

Excess reserves = $800

Reserve ratio = 30%

Total deposits into checking account = $1,000

Lends to Melanie = $600

Required reserves = 30% of Total deposits

                               = 0.3 × $1,000

                               = $300

Total excess reserves:

= Old excess reserves + New excess reserves

= $800 + $700

= $1,500

Total excess reserves after lending to Melanie:

= $1,500 - $600

= $900

Therefore, bank can lend an additional amount of $900.

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Northwestern Data Systems has adopted a new organizational approach with regard to information flow, ensuring that employees hav
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Explanation:

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3 years ago
A dealer bought some tires for 6500. the tires were sold for 9500. making 50 on each tire. how many tires were involved?
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6 0
4 years ago
Louise purchased a disability policy when her salary was $4,000 a month. Later, she lost that job and her salary was reduced to
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$3,500

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3 0
3 years ago
Concord Corporation reported net income of $177,200 for 2017. Concord Corporation also reported depreciation expense of $35,230
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Answer

Net income 177,200

+35230 depreciation

+4,920 loss on disposal

217,350 adjusted net income (a)

↑↓

↑AR -14,160

↑Prepaid -4,190

↑AP 17,220

Change in working Capital -1,130(b)

<u />

<u>Cash Flow generated from operating activities 216,220</u>

<u />

Explanation:

(a) we must remove the non-monetary account from the income statement

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4 0
3 years ago
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