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Svetach [21]
3 years ago
14

Suppose the required reserve ratio is 10% and the banking system initially has no excess reserves. If $20 billion in new currenc

y is deposited into the system, these new deposits will initially create excess reserves of: Group of answer choices $4 billion $200 billion $2 billion $18 billion $20 billion
Business
1 answer:
mixas84 [53]3 years ago
3 0

Answer:

$18 billion

Explanation:

A required reserve ratio refers to the fraction of the deposits received by a bank or financial institution that the regulatory authority requires the bank to hold as reserves and not loaning it out.

Excess reserves refers to reserves that is above the required reserved which held by a bank or financial institution and can can be loaned out. Excess reserve is therefore total deposit minus required reserve.

Since the required reserve ratio is 10% from the question, initial required reserve for the bank can therefore be obtained as follows:

Initial required reserve = 10% * Deposits = 10% * $20 billion = $2 billion

As result, we have:

Initial excess reserve = Deposit - Required reserve = $20 billion - $2 billion = $18 billion

Therefore, these new deposits will initially create excess reserves of <u>$18 billion</u>.

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A course that costs $500 will allow you to get a job that pays $2 more per hour than your current job. How many hours will you n
torisob [31]

Answer:

250 hours.

Explanation:

Cost of course : $500

The extra income from the course is $2 per hour

to pay off the cost of the course requires earning $500 by working at a rate $2 per hour.

Number of hours required = $500/2

=250 hours.

7 0
2 years ago
Alfonzo's Italian House has 25,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a shar
Liono4ka [1.6K]

Answer:

$18

Explanation:

6 0
3 years ago
Selected current year company information follows:
koban [17]

Answer:

b. 2.81 times

Explanation:

Calculation to determine Total stockholders' equity, end-of-year 121,851

Total asset turnover is:

First step is to calculate the Total assets

Beginning Ending

Total liabilities $83,932 $103,201

Total equity 198,935 121,851

Total assets $282,867 $225,052

Now let determine the Total asset turnover

Total asset turnover = $712,855/[($282,867 + $225,052)/2]

Total asset turnover= 2.81 Times

Therefore Total stockholders' equity, end-of-year 121,851

Total asset turnover is:2.81 Times

6 0
3 years ago
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional
Juli2301 [7.4K]

Answer:

Healthcare practitioners & supporters and Management have highest percentage increase anticipated.

Explanation:

The Healthcare practitioners have most demand in the market is because of the fact that developing countries have higher demand for these jobs and thus they show highest growth.

On the other hand, management is the backbone of the company. We can not imagine a company without management. Hence their is an increased demand in management operations. If the GDP of the country is growing then it means the business is growing and their is increased demand for the management jobs.

The automation will affect most of the difficult jobs and would increase efficiency in the coming future. The occupations that would be affected will be aggriculture production operations.

7 0
3 years ago
The two major markets in the circular flow of income and expenditure are the:________
Arada [10]

Answer:

[2] goods market and factor market.

Explanation:

The circular flow of income shows how exchange of money, goods and services occur in an economy.

the two flow circular income model consists of an household and a firm.

The household buys factors of production from the household in exchange for money (firms buys from the factor market). In return, households receive payment.

households then go to the goods market to purchase goods and services.

3 0
3 years ago
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