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Vlada [557]
3 years ago
13

If the reserve ratio is 12.5 percent, then $5,600 of money can be generated by Select one: a. $64 of new reserves. b. $700 of ne

w reserves. c. $448 of new reserves. d. $800 of new reserves.
Business
1 answer:
malfutka [58]3 years ago
5 0

Answer:B. $700 of new reserves.

Explanation: Reserve ratio is the percentages of bank deposits which commercial banks must keep with them and not lend out, this is done by central bank in order to control inflation, interest rates etc

In ordinary terms reserve ratio is the percentage amount that is kept aside for future endeavours. Reserve ratio is very good to protect an organisation or a country during trying times.

A higher reserve ratio will reduce money lending rate and make commercial banks have less amounts to lend out.

If the reserve ratio is 12.5%, the dollar value of the amount that can be reserved from $5600.

The formula is as follows,the reserve ratio divided by one hundred multiplied by the amount. The reserve in Dollar value will be

Equal to (12.5%/100)*$5600= $700.

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An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe
zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= \frac{Contribution\ margin}{Sales}

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}    

Thus, weighted average contribution margin would be, 60 percent

7 0
3 years ago
Someone may choose to own a car instead of leasing because:
yarga [219]

Option A is correct

If someone buys a car, he can sell it later when he needs some money. He can also sell the car if the car becomes obsolete or useless. In the leasing contract, the car will not be owned by the lessee (or the user). So, the lessee cannot sell the car but can use only for the specified period of time. Only the lessor can sell the car and get some money.

Therefore, from the given options, the benefit of the buying vs leasing is that the buyer can sell the car later to get some money back.


7 0
3 years ago
Read 2 more answers
When modeling economic situations using game theory, the economic participants are generally referred to as:?
zysi [14]

In game theory, economic participants are referred to as "players". Game theory consists in the use of mathematical models in order to predict the behaviour of rational decision-makers in cooperative and competitive environments.

4 0
3 years ago
Read 2 more answers
Tallow​, Inc. had reported the following​ balances: LOADING...​(Click the icon to view the 2018 and 2019 ​balances.) 11. Compute
Pachacha [2.7K]

Answer:

Explanation:

Rate of return on common stockholder's equity for 2019:

= (Net Income - Preferred Dividend) / Av. common stockholder's equity

= ($94,000 - $26,000) / $312,000

= $68,000 / $312,000

= 0.2179 or 21.79%

Av. common stockholder's equity 2019 :

Total stockholder's equity 2018 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $318,000 - $22,000

= $296,000

Total stockholder's equity 2019 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $350,000 - $22,000

= $328,000

Av. common stockholder's equity 2019 = ($296,000 + $328,000) / 2 = $312,000

7 0
4 years ago
Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investment
nekit [7.7K]

Answer:

Investment D would have the lowest present value

Explanation:

A is smaller compared to E, This is because the money comes in later

The same argument holds for B and C, that is, B is lower compared to C because the money comes in later too.

A is also lower than B, this is because  of the annuity to be received later is larger.

D is just one payment, which means D is the right answer compared to A

This means investment D would have the lowest present value compared to all other investment choices.

5 0
3 years ago
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