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mario62 [17]
3 years ago
9

The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.

Business
1 answer:
lord [1]3 years ago
3 0

Answer:

The answer is option (3) $200,000

Explanation:

Solution

Given that:

The reserve ratio =20%

The Required reserves = 300000*20/100

=60000

The excess reserves = 100000-60000

=$40000

Thus

The Money multiplier = 1/0.20

= 5

Therefore, maximum amount by which loans could be expanded = 40000*5

= $200000

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What are the two most critical things you should do before you perform a job
dlinn [17]
Safety & knowledge of the job
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3 years ago
Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates th
Reil [10]

Answer: 13.2%

Explanation:

Given data:

No of stores in the market = 5000

No. of store owners = 2000.

Allison charges = $8/month

Sam charges = $8/month.

Solution:

The market penetration rate would be calculated based on potential customers.

Using our general formula,

Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population

Where,

Total potential population=1,500

•Allison derived sales = 129 customers

•Sam derived sales = 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers

Let’s input this into our general formula.

Market penetration

= 169 customers/1,500

= 0.132*100

= 13.2%

The market penetration rate based on potential customers is 13.2%

8 0
3 years ago
Dufner Co. issued 14-year bonds one year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on
valentinak56 [21]

Answer:

Bond price= $1,210.4

Explanation:

Giving the following information:

Coupon rate= 0.079/2= 0.0395

YTM= 0.056/2= 0.028

Face value= $1,000

n= 13*2= 26

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond price= 39.5*{[1 - (1.028^-26)]/0.028} + [1,000 / 1.028^26]

Bond price= 722.67 + 487.73

Bond price= $1,210.4

4 0
3 years ago
The goal of channels of distribution is to move products from producers to
Delvig [45]

Answer:

Final consumers

Explanation:

The goal of channels of distribution is to move products from producers to final consumers, that is, by bridging the gap between the producer and the consumer by bringing the product or service to the final buyer or consumer. Products and services may go through channel members known as intermediaries which include wholesalers, retailers, distributors.

7 0
3 years ago
the benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is call
Snezhnost [94]

The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is called externality.

What does the term externality mean?

Externalities are situations when the production or consumption of products and services has an impact on other people that results in costs or advantages that are not accounted for in the pricing charged for the goods and services being offered.

What impact do externalities have on the economy?

When people, households, and businesses fail to internalise the indirect costs or advantages of their economic interactions, externalities pose serious issues for economic policy. Inefficient market outcomes are the result of the resulting wedges between social and private costs or profits.

To know more about externality, click here- brainly.com/question/477170

#SPJ4

8 0
1 year ago
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