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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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An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu
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Answer:

The difference between two securities is 0.89%.

Explanation:

Inflation premium for the next three and five years:

Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3

                                  = 2.83%

Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5

                                  = 3.24%

Real risk-free rate = 2.35%

Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:

Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)

6.80% = 2.35% + 2.83% + MRP(3)

MRP (3) = 1.62%

Similarly,

5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)

8.10% = 2.35% + 3.24% + MRP(3)

MRP (5) = 2.51%

Thus,

MRP5 - MRP3 = 2.51% - 1.62%

                         = 0.89%

Therefore, the difference between two securities is 0.89%.

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Suppose you are a leader responsible for an organization’s vision/mission statements. How often do you think they should be chan
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Explanation:

Vision and mission statements are extremely important for a company to convey its core values ​​to its employees, suppliers and customers. They help communicate the company's identity and provide direction and set goals that are fundamental to organizational success. They are considered the basis of an organization, <u>so it is not recommended that changes in vision and mission are frequent</u>, the reasons that justify the change <u>would be the change of the organizational focus and the evolution of the organizational objectives and expansion of the target audience.</u>

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Suppose that a museum of modern art discovers the following: adults are willing to pay $20 per ticket to see a Monet exhibit. St
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Answer:

50%

Explanation:

From the question we have here

If adults would pay 20$

Out of a 100% students:

60% would pay 15

40% would pay 10

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Discount = (20 - 10)/20 x 100

Discount = 0.5 x 100

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3 years ago
Characteristics of capital projects include: Group of answer choices Involves long-lived assets Usually requires long-range plan
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Characteristics of capital projects include (B) usually requires long-range planning and extensive financing.

<h3>What are capital projects?</h3>
  • A Capital Project is one that serves to maintain or improve a City asset, also known as infrastructure.
  • A project must meet ONE of the following requirements (criteria) to be included in the Capital Budget.
  • It is a project that involves the construction, enlargement, renovation, or replacement of an existing building or facilities.
<h3>Characteristics of capital projects:</h3>
  1. Long-lasting assets are involved (e.g, buildings, roads and bridges, etc.)
  2. A construction project is usually included.
  3. Long-term planning and extensive financing are usually required.
  4. Maintain a project-life emphasis rather than a year-to-year concentration.

Therefore, characteristics of capital projects include (B) usually require long-range planning and extensive financing.

Know more about capital projects here:

brainly.com/question/7442083

#SPJ4

Correct question:

Characteristics of capital projects include:

Group of answer choices -

(A) Involves long-lived assets.

(B) Usually requires long-range planning and extensive financing.

(C) Usually has a year-to-year focus.

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