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adelina 88 [10]
3 years ago
14

If total deposits in bank A total $15 million and the required-reserve ratio is 10 percent, than excess reserves equal:_______

Business
1 answer:
victus00 [196]3 years ago
7 0

Answer:

$13.5 million  

Explanation:

Fractional Banking System- This is banking system where banks are required by the central banking authority to keep a certain percentage of their total deposit as the minimum reserve which they cannot lend out.

The idea behind this requirement is to help manage liquidity risk- a situation where a bank does not have enough cash to meet its deposit customers demand.

Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.

Therefore the required reserve for this bank = 10% ×$15 million= $1.5 million

Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.

It is calculated as = Total deposit - Required reserve

So we apply this to our question

        Excess reserve = $15 million - (10% × $15 million)

                               = $15 million - $1.5 million

                              = $13.5 million

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Answer:

$1,956,684

Explanation:

As the project has a expected annual return, we have to calculate future value of this investment to find how much money Cll, Inc. will have after 10 years to reinvest.

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FV = $1,956,684

$1,956,684 can be reinvested after the liquidation of 10 years.

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Runner's warehouse purchased digital watches for $92.99. its markup rate is 25% based on the selling price. what is the selling
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As the contestant with the longest winning streak in the history of Jeopardy, Ken Jennings won more than $2.5 million. Suppose h
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Total amount = $10906400

He would receive = $ 45443.33 every month

Explanation:

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n = 20*12= 140

t = 20

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A =

1600000(1+(0.096/140))^ (140*20)

A =

1600000(1 + (6.857*10^-4))^(2800)

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2 years ago
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Answer:

C) technical

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<h3>What is the annual premium?</h3>

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The annual premium helps to guarantee payment of indemnity when the covered events occur.

This implies that the annual premium is a periodic contribution that helps in the pooling of risks by the insured to help the insurer meet its indemnity obligations.

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Adjusted premium = $1,248 ($975 x 1.28)

Thus, the adjusted premium based on a current annual premium of $975, increased by a 28% penalty for being at fault in the second accident in six months, is <u>$1,248</u>.

Learn more about the annual premium at brainly.com/question/25280754

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