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Fed [463]
2 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]2 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]2 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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klio [65]

Answer:

The option which is not a task of the bankruptcy trustee is;

Represent the debtor when meeting with creditors

Explanation:

In a case of bankruptcy a bankruptcy trustee is assigned by the court and to whom the case information is handed to perform the following tasks

1) Converts the collected company assets to money

2) Assess the creditors (owed by the debtor) proof of claims

3) Allocate monetary refunds to the creditors

4)  Upholds or refuse claimants to specific debts

5) Completes tax and other financial reports that are submitted to government agencies

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2 years ago
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Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to bui
Vladimir79 [104]

Answer and Explanation:

A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain

Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain

Both designs are assumed to be permanent

To find ROR using AW based rate of return equation, we find present value of each design and equate them:

Each design is permanent so

Present value of perpetuity:

Design 1A= 1700000+175000/r

Design 1B = 3600000+40000/r

=1700000+175000/r=3600000+40000/r

135000/r=1900000

Cross multiply

r=135000/1900000

r= 0.0710

r=7.10%

B Given that ROR=7.10% and MARR is 25%

MARR>ROR

Hence we reject both designs

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3 years ago
Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. his move-in costs are one month's
Vika [28.1K]
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3 years ago
Which of the following best describes the difference between a convertible bond and a warrant? Convertible bonds give the invest
levacccp [35]

Answer: Statement A

Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.

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Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

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Thus, from the above explanation we can conclude that statement A is correct.

4 0
2 years ago
Match the following characteristics with their relevant project team organizational structures. The project is housed within a f
Rasek [7]

Answer:

A. Pure project A project manager leads personnel from different functional areas = Team members can work on several projects. Duplication of resources is minimized.

B. Functional project Personnel work on a dedicated project team = Team pride, motivation, and commitment are high.

C. Matrix project A team member reports to two bosses = The project is housed within a functional division of the firm.

Explanation:

For A answer, this kind of project management conducts the people, to work on a multitasking way, because they have to accomplish the responsibilities on their functional area as the same that they must accomplished their responsibilities on the project areas. This can minimized the resources for the project but could impact negatively on the compliment of responsibilities because is the same person for two work fronts.  

For B answer, if the people can focus their efforts only in the project, that creates more interest on reach the goals efficiently than if the team were distributed on functional and projects departments

For C answer, when the project is developed in a functional division of the firm, you, as a team project member, must report to the project manager and your functional area boss.

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