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sweet [91]
3 years ago
5

Suppose ​$50 comma 000 is deposited at a bank. The required reserve ratio is 20 ​percent, and the bank chooses not to hold any e

xcess reserves but makes loans instead. What are the​ bank's total​ reserves?
Business
1 answer:
Angelina_Jolie [31]3 years ago
3 0

Answer:

$10,000

Explanation:

Provided amount deposited to bank = $50,000

Reserve ratio is 20%

And provided the company do not have any amount more than the required reserve, therefore balance in reserve = $50,000 \times 20% = $10,000

Further remaining $50,000 - $10,000 = $40,000 will be advanced as loan, and will not form part of reserves.

Therefore, total reserve's of bank = $10,000

You might be interested in
A buyer values a house at $525,000 and a seller values the same house at $485,000. If sales tax is 8% and is levied on the selle
Katena32 [7]

Answer:

$523,800

Explanation:

Given parameters:

Cost price by buyer = $525000

Selling price by seller = $485000

Sales tax = 8%

Unknown:

The lowest selling price by the seller = ?

Solution:

To solve this business problem, we must understand that the price the seller would be will to part with will be his selling price and the percentage of sales tax incurred in the procurement.

This will be the minimum and least profitable estimated amount the seller is willing to sell at.

   Lowest selling price = selling price by seller + amount of sales tax incurred

Sales tax amount = selling price x sales tax percentage

                             = $485000 x \frac{8}{100}

                              = $38800

Lowest selling price = $485000 + $38800 = $523,800

4 0
3 years ago
Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-
olga55 [171]

Answer:

Compute overhead applied and the under- or overapplication of overhead for the period

Budgeted Rate = $1,600,000/ 400,000 machine hours

                         = $ 4 per Machine Hour

Overheads Applied = 390,000 × $ 4 per Machine Hour

                                       = 1,560,000

Actual Overheads            = 1,575,000

Less Applied Overheads = 1560,000

Under- Applied                =     15,000

Explanation:

<u>Overheads are Applied as follows:</u>

Actual Activity for the period × Budgeted Overhead Rate

<u>Budgeted Rate is determined as follows:</u>

Budgeted Total Overheads/Budgeted Activity

<u>Under- or Overapplication of overhead is determined as follows:</u>

Actual Overheads - Applied Overheads

Under Application is therefore : Actual Overheads > Applied Overheads

Over Application is therefore : Actual Overheads < Applied Overheads

4 0
2 years ago
Swifty Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 76 units that c
dedylja [7]

Answer:

Ending inventory in units= 194

Explanation:

Giving the following information:

The beginning inventory consisted of 76 units.

During the current month, the company purchased 478 units.

Sales during the month totaled 360 units.

<u>To calculate the number of units in ending inventory, we need to use the following formula:</u>

Ending inventory in units= total inventory - sales in units

Ending inventory in units= 554 - 360

Ending inventory in units= 194

4 0
2 years ago
Your firm has preferred stock outstanding that pays a current dividend of $3.00 per year and has a current price of $39.50. You
aksik [14]

Answer:

7.59%

Explanation:

the dividend is a perpetuality, so the formula for determining the price is :

Price = dividend / required rate of return

$39.50 = $3 / required rate of return

required rate of return = $3 / $39.50 = 0.0759 = 7.59%

7 0
2 years ago
Governments normally are concerned when their country is running a surplus on the current account of their balance of payments.
lutik1710 [3]
True because they really care about it so as for inflation and deflation not to fall in
3 0
2 years ago
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