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Harman [31]
3 years ago
6

Ninth national bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. with a required reserve ratio of

8 percent, how much in excess reserves is ninth national holding?
Business
1 answer:
hram777 [196]3 years ago
3 0
We are asked to solve for the excess reserves. There are given values such as:
Checkable deposits = $ 150,000,000
Total reserves = $12,000,000
Required reserve ratio = 8%

Solving for reserve amount, we have:
Reserve amount = 0.08 * $150,000,000 = $ 12,000,000

Solving for the excess:
Excess reserves = $ 12,000,000 - $12,000,000 = $0

The answer is $0.
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financial accounting and management accounting

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3 years ago
In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is
zlopas [31]

Answer:

Change in US external wealth between periods T and T +1 in dollars = -$100

Explanation:

Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:

Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700

Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600

Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100

4 0
3 years ago
In order to avoid project delays, project managers confronted with a resource overload will seek to delay some of the noncritica
Westkost [7]

Answer: True

Explanation:

When a project manager is confronted with resource overload, an activity that is not on the critical path can be delayed in order not to unnecessarily delay the project. The non-critcal activities can be delayed than an amount no longer than the slack period. This levels demand for that worker.

3 0
3 years ago
A _____ option allows the _____ to buy the underlying asset at the option's exercise price on or before the expiration date. cal
alexdok [17]

Answer:

The correcto answer would be "call"

Explanation:

A CALL option allows the BUYER to buy the underlying asset at the option's exercise price on or before the expiration date. call; seller put; buyer put; seller call; buye

The owner or buyer of a call option benefits from the option if the underlying asset rises, that is, if when the call option expires, the asset (an action for example) has a price greater than the agreed price . In that case, the option buyer will exercise his right and buy the asset at the agreed price and sell it at the current market price, earning the difference.

If the price turns out to be less than the agreed price, known as the strike or strike price, the buyer will not exercise his right and will simply have lost the premium he paid for acquiring the option. Therefore, your benefit may be unlimited, but your loss is limited to the premium you paid.

6 0
3 years ago
A 28-year-old single investor has funds saved at a bank. He contacts an RR and wants to begin allocating funds to a retirement a
Contact [7]

Answer: a. 80% stocks, 20% bonds

Explanation:

Stocks are a better fit for young people for 2 reasons;

1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.

2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.

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At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.

6 0
3 years ago
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