1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dovator [93]
3 years ago
5

Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 30%. Then Andy deposits $1,000 of cash into h

is checking account and the bank lends $600 to Molly. That bank can lend an additional:
A) $100.
B) $800.
C) $900.
D) $300
Business
1 answer:
ratelena [41]3 years ago
3 0

Answer:

excess reserves after lending  = $900

so correct option is C) $900

Explanation:

given data

reserves = $800

reserve ratio = 30%

deposits = $1,000

bank lends = $600

to find out

That bank can lend an additional

solution

first we get required reserves from new deposit that is express as

required reserves  = deposit × reserve ratio      ......................1

put here value

required reserves  = $1000 × 30%

required reserves  = $300

and

now excess reserves from new deposits will be  

excess reserves = deposits - required reserves     .......................2

put here value

excess reserves = $1000 - $300

excess reserves  = $700

and

total excess reserves  will be here

total excess reserves = old excess reserves + new excess reserves     ...........3

put here value

total excess reserves =  $800 + $700

total excess reserves = $1500

so that

excess reserves after lending is here express as

excess reserves after lending  = excess reserves - amount given to Molly   ..........................4

put here value

excess reserves after lending  = $1500 - $600

excess reserves after lending  = $900

so correct option is C) $900

You might be interested in
If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and tota
goblinko [34]

Answer:

The correct answer is letter "B": increase; decrease.

Explanation:

Producer surplus is the difference between the price at which the manufacturer actually sells a product and the minimum price the manufacturer would have accepted. The surplus results from the producer being able to sell their goods at a market price higher than their minimum price.  

So, <em>if producer A manufactures a product that is being sold at a higher price level abroad, its producer surplus will </em><u><em>increase</em></u><em>. However, the overall economic surplus with trade will </em><u><em>decrease</em></u><em> since the introduction to producer A to the market will allow consumers to purchase the goods at a lower price</em>.

6 0
3 years ago
The united states had about 60 percent fewer farms and ________ percent fewer farmers in 2000 than in 1900.
adoni [48]
85% is the right answer because I said so...
6 0
3 years ago
How does the nurse arrange the events that take place during the promotion of glucose transportation into the cells through cell
Advocard [28]
The events that take place during the promotion of glucose transportation into the cell through the cell membrane occur in the following order:
1. Secretion of pro insulin by beta cells.
2. Storage of pro insulin in the pancreas.
3. Transformation of pro insulin into active insulin and 
4. Attachment of insulin to receptors.
8 0
3 years ago
Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple maili
KatRina [158]

Direct marketing element is used in this case.

<u>Explanation:</u>

Direct marketing in one of promotional methods of marketing that not only involves the description of product and company but also targets the customers. Through this method, the products are sold directly to public and there is no involvement of any middleman. An offer is communicated to a pre-slected customer and is told about the product information and its features.

Thus, in the given case, the promotional method that is being used in direct marketing method.

7 0
3 years ago
The MedTech Company recently reported net profits after taxes of ​$15.8 million. It has 2.5 million shares of common stock outst
oksian1 [2.3K]

Answer:

EPS 5.92

dividend yield: 3.33%

payout ratio: 0.3378

Explanation:

<em><u>Earnings per share:</u></em>

EPS = (income - preferred dividends) / common stock utstanding

EPS = (15,800,000 - 1,000,000)/ 2,500,000 = 5.92

<em><u>dividend yield:</u></em>

dividend per share / market price

$2.00 / $60.00 = 0.03333 = 3.33%

<u><em>payout ratio: </em></u>

dividends per share / earning per share

2 / 5.92 = 0,3378

7 0
3 years ago
Read 2 more answers
Other questions:
  • The Anti-Federalists wanted to
    9·2 answers
  • The inflation rate, as measured by CPI, should remain at or below _______% to achieve price stability.
    7·1 answer
  • Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the
    8·1 answer
  • I need the answer for this
    5·1 answer
  • net income is 180 depreciation is 50 change in asset and liability accounts is 20 what i the cash provided
    6·1 answer
  • A restaurant chain sponsors a charity that provides support to the parents of children being treated for cancer. How would the u
    11·1 answer
  • Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue
    13·1 answer
  • is it right to kick someone out just because they are not on the lease and or had been evicted in the past? my step-mom recently
    5·2 answers
  • Is Cab Service in the UK is Excellent Choice for Transport?
    12·1 answer
  • Crowdsourcing tools and question-and-answer sites like _____ allow firms to reach out for expertise beyond their organizations.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!