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melisa1 [442]
3 years ago
7

Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If t

he Fed reduces the required reserve ratio to 10%, the bank will now have excess reserves of:_________.
Business
1 answer:
Verizon [17]3 years ago
6 0

Answer:

Excess reserve = $180 million

Explanation:

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% ×$200 million= $20 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 = $200 million - (10% × $200 million) = 180  million

Excess reserve = $180 million

                         

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A. covenant not to compete
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3 years ago
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn
xeze [42]

Answer:

1. Jan. 1, 2021

Dr Right-of-use Asset $417,665

Cr Lease Liability $417,665

Jan. 1, 2021

Dr Lease Liability 61,000

Cr Cash 61,000

Dec. 31, 2021

Dr Lease Liability $25,870

Dr Interest Expense 35, 130

Cr Cash 61,000

Dec. 31, 2021

Dr Amortization Expense $41,230

Cr Right-of-use Asset $41,230

2. Jan. 1, 2021

Dr Lease Receivable $610,000

Cr Sales Revenue $610,000

Jan. 1, 2021

Dr Cash $61,000

Cr Lease Receivable $61,000

Dec. 31, 2021

Dr Cash $61,000

Cr Lease Receivable $61,000

Explanation:

1. Preparation of the appropriate entries for the lessee related to the lease on January 1, 2021 and December 31, 2021.

Jan. 1, 2021

Dr Right-of-use Asset $417,665

Cr Lease Liability $417,665

(To record lease)

Jan. 1, 2021

Dr Lease Liability 61,000

Cr Cash 61,000

(To record lease payment)

Dec. 31, 2021

Dr Lease Liability $25,870

($61,000-35,130)

Dr Interest Expense 35, 130

Cr Cash 61,000

(To record lease payment)

Dec. 31, 2021

Dr Amortization Expense $41,230 (412,300/10)

Cr Right-of-use Asset $41,230

(To record amortization)

2. Preparation of the appropriate entries for the lessor related to the lease on January 1, 2021 and December 31, 2021.

Jan. 1, 2021

Dr Lease Receivable $610,000

Cr Sales Revenue $610,000

($61,000*10)

(To record lease payment)

Jan. 1, 2021

Dr Cash $61,000

Cr Lease Receivable $61,000

(To record cash received)

Dec. 31, 2021

Dr Cash $61,000

Cr Lease Receivable $61,000

(To record cash received)

3 0
3 years ago
In time of rising prices, ending inventory determined using the LIFO inventory assumption will be ________ than ending inventory
Yuliya22 [10]

Answer:

LOWER

Explanation:

In time of rising prices, the inventory valuation made according to <em>LIFO</em> ( LAST IN FIRST OUT )  will be <u>LOWER</u> than the one valued according to <em>FIFO</em> ( FIRST IN FIRST OUT ) method.

The reason is that in <em>LIFO</em>, the newer stock is sold first, therefore, the remaining inventory is valued according to older purchases, that in inflationary context have lower prices.

6 0
3 years ago
One common feature of agile projects is the "walk-around meeting".<br> A. True<br> B. False
SashulF [63]

Answer:

A

Explanation:

Agile means able to move around quickly

3 0
3 years ago
T. Wiley sells one-half of her partnership to L. Tims for $10,000 cash. The entry to record this transaction in the books of the
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The entry to record this transaction in the books of the partnership will include a debit to T. Wiley, Capital.

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The subsequent allocation of this profit or loss to each partner's capital accounts is done according to their respective percentages of ownership in the company. For instance, the allocation is a debit to the income summary account and a credit to each capital account if there is a profit in the income summary account.

<h3>Is the Wiley family still involved in the company?</h3>

The involvement of the Wiley family is ongoing, with sixth-generation members (and siblings) Peter Booth Wiley serving as the non-executive chairman of the board and Bradford Wiley II serving as a director and past chairman of the board, even though the company is run by an independent management team and Board of Directors.

<h3>How are profits and losses split in a partnership?</h3>

By definition, participants in a partnership split the gains and losses. The earnings and losses of partnerships are frequently divided evenly among the partners. The distribution will be proportionate to the partners' relative ownership shares if they are not equal.

Learn more about limited partnership:

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8 0
1 year ago
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