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emmasim [6.3K]
3 years ago
10

"A commercial bank has actual reserves of $1 million and checkable-deposit liabilities of $9 million, and the required reserve r

atio is 10 percent. The excess reserves of the bank are:
A) $100,000.
B) $1 million.
C) $900,000.
D) $50,000."
Business
1 answer:
lozanna [386]3 years ago
7 0

Answer: The correct answer is A. $100,000

Explanation: The reserve requirement is a regulation by the central bank that sets the minimum amount of reserves that must be held by a commercial bank.

The reserve ratio is the portion of checkable- deposit liablities that commercial banks must hold onto, rather than use for it's primary activities.

Excess reserves occurs in a situation where the actual reserves is greater than the estimated reserves

Computation of Execess reserve: Here, It is set at 10% of the checkable-deposit liabilities which is $9million

10% of $9,000,000 = $900,000

Actual reserves - Estimated Reserves = Excess reserves

$1,000,000 - $900,000 = $100,000

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Scilla [17]

Answer:

true is the correct answer right

8 0
3 years ago
Yani just graduated from college and moved back to his hometown in Connecticut. He is offered a job at the large insurance firm
user100 [1]

Answer:

With Yani's counter-wage offer, the insurance firm will likely reject his counter-offer and, in the extreme, withdraw the employment proposal with the firm.

Explanation:

As indicated in the question, the insurance company is a monopsony.  A monopsony is the single buyer in the marketplace.  This means that there is no other firm that can employ Yani in his Connecticut hometown.  He must look for another job in another environment outside his hometown or condescend to accept the lower than hoped-for salary by the large insurance firm.

7 0
3 years ago
A(n) ______ indicates the maximum quantity of a product that may be brought into a country during a specific time period:
mash [69]

What indicates the maximum quantity of a product that may be brought into a country in a specific period is a quota.

<h3>What does quota mean?</h3>

A quota is the maximum monetary value of a good and service that can be imported into a country for a  specific period.

The purpose of a quota is to restrict the amount of import into a country so as to boost local production of the good for which the quota is placed. Quotas also limit foreign competition.

To learn more about imports, please check: brainly.com/question/26497713

5 0
3 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

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4 years ago
These are four points from a presentation on the Great Depression:
kolezko [41]
c. history of the Great Depression
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