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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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The January 28, 2017 (fiscal year 2016) financial statements of Caleres, Inc. reported the following information (in thousands):
san4es73 [151]

Answer:

A. 136.2 days

Explanation:

To compute the average days inventory outstanding, first, we have to find out the inventory turnover ratio

Inventory turnover ratio =  Cost of goods sold ÷ average inventory

where,  

Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2

= ($546,745 + $585,764) ÷ 2

= $566,254

And, the cost of good sold is $1,517,397

Now put these values to the above formula  

So, the answer would be equal to  

= $1,517,397 ÷  $566,254.50

= 2.67 times

Now, Days in inventory  = Total number of days in a year ÷ inventory turnover ratio

= 365 days ÷ 2.67 times

= 136.70 days approx

5 0
3 years ago
Pedro sells investment land on September 1, 2019. Information pertaining to the sale follows: Adjusted basis $25,000 Selling pri
bearhunter [10]

The tax consequence in 2019 is $10584 while the tax consequence from 2020 to 2023 will be $13229.

Bases on the information given, the realized gain will be:

= $90000 - $25000 - $1500

= $63500

The gross profit percentage will be:

= 63500/(90000 - 18000) × 100

= 63500/72000 × 100

= 88.19%

The tax consequence in 2019 will be:

= $12000 × 88.19% = $10584

The tax consequence in 2020 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2021 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2022 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2023 will be:

= $15000 × 88.19% = $13229

Read related link on:

brainly.com/question/25301019

8 0
2 years ago
Private solutions to correct for externalities consider the following scenario:________.
Charra [1.4K]

Answer: Charities; coordinating negotiations among all of the parties too costly

Explanation:

From the question, we are told that that a chicken farm uses a nearby stream to dispose of the wastes that is released by its chickens and that the wastes flow downstream into a lake that has become polluted due to the waste matter. The local office of a nonprofit environmental organization then collects enough donations in order to stop the farm's pollution.

The type types of private solutions to the pollution externality which has occured is charity. This is because it is a voluntary activity. The money collected is meant for a specific objective which is to tackle the issue of pollution.

It is also vital to note that sometimes the private solutions to externalities might not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that coordinating negotiations among all of the parties too costly.

6 0
3 years ago
Jess wrote Amanda a check for $358.36, and Amanda deposited the check into her checking account. Where was Amanda's signature?
vovikov84 [41]
On the back of the check
3 0
3 years ago
Read 2 more answers
The production facility for a space shuttle would probably be organized according to a ________ layout.
mylen [45]

Answer:

fixed-position

Explanation:

7 0
2 years ago
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