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Fed [463]
3 years ago
15

A commercial bank has excess reserves of $5000 and a required reserve ratio of 20 percent. it makes a loan of $6000 to a borrowe

r. the borrower writes a check for $6000 that is deposited in another commercial bank. after the check clears, the first bank will be short of reserves in the amount of:
Business
2 answers:
diamong [38]3 years ago
5 0

Answer:

The first bank will be short of reserves in the amount of $1,000

Explanation:

According to the given data, we have the following:

bank excess reserves=$5,000

reserve ratio=20%

Total Reserve= $5000+(20%*$5,000)= $6,000

Therefore, to calculate the reserve shortage we would have to make the following calculation:

reserve shortage=$6,000 - $5,000 = $1,000

The first bank will be short of reserves in the amount of $1,000

irinina [24]3 years ago
5 0

Answer:

$1,000

Explanation:

To this calculation, we can use the following method

The bank has excess reserve of = $5,000

Loan been made to a borrower = $6,000

The amount that it will be short of it reserve is = Loan been made to a borrower - The bank has excess reserve

= $6,000 - $5,000

= $1,000

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Anson Jackson Court Company (AJC) The Anson Jackson Court Company (AJC) currently has $200,000 market value (and book value) of
ddd [48]

Answer:

7.38%

Explanation:

Calculation to determine what would be AJC's new WACC and total value

Using this formula

WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)

Let plug in the formula

WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)

WACC and total value=0.057+0.0168

WACC and total value=0.0738*100

WACC and total value=7.38%

Therefore would be AJC's new WACC and total value is 7.38%

5 0
2 years ago
Suppose the government requires each firm to reduce sulfur dioxide emissions by an equal amount such that total emissions are re
stealth61 [152]

Answer:

is not efficient because firms can have different costs of reducing pollution.

Explanation:

Economic efficiency is the way a business maximises the use of factors of production (land, labor, capital) to produce output at a reduced cost. Efficiency aims to improve output and reduce cost to the barest minimum.

In this instance to individual cost required to reduce sulfur dioxide emissions is not considered by the government.

Since reduction of sulfur dioxide is equal among firms, some smaller ones may incur cost that will financially impair them and put them out of business.

While bigger firms will easily bear the cost.

7 0
3 years ago
Liquidity refers to Group of answer choices the ease with which an asset is converted to the medium of exchange. the measurement
Pani-rosa [81]

Answer:

The correct answer is letter "A": the ease with which an asset is converted to the medium of exchange.

Explanation:

The liquidity of an asset reflects the ease with which it can be transformed from investment to cash. Liquid assets are those that can be transformed easily to cash and see little or no difference in the value of the assets when transformed. Illiquid assets are more difficult to convert and can result in a major decrease in value once converted.

6 0
3 years ago
What is a duty paid on a particular class of goods?
mina [271]
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parcel package system goods service class
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4 years ago
If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing
Vsevolod [243]

Answer:

C. Business process improvement.

Explanation:

Product reevaluation and Life cycle costing are product dependent and aims to improve products on the individual level and the business on the whole.

Business Intelligence is when businesses use different types of data to compile an analysis for informed decision making.

A value chain refers to all the activities that a business undertakes from procurement of raw materials to adding value. This can be a part of improvement process but it is not directly related.

Business process improvement is when management identifies all the business processes and analyses if there is a need for improvement and identifying areas that need change - then improving upon these findings.

This is the right answer.

Hope that helps.

6 0
3 years ago
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