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nikitadnepr [17]
3 years ago
6

A U.S. bank has £120 million in loans to corporate customers and has £70 million in deposits it owes to customers with the same

maturity. The bank has also sold £20 million pounds forward. The bank's net exposure is ______.
Business
1 answer:
postnew [5]3 years ago
6 0

Answer:

£30 million

Explanation:

Banks net exposure serves as the the money currently owned by the bank.

Credit to bank;

Loans to corporate customers is bank's money since customers will repay the loan back to the bank even with interest = £120 million

Total credit owned by the bank =

£120 million

Debit;

Deposit owned to customers = £70 million (It is customers money not bank's)

Money sold forward by bank is also going out of banks pocket (debit) =£20 million

Total debt owned by bank = £70 million+£20 million = £90 million

Bank's net exposure = Total credit - debt owned by bank

Banks net exposure = £120 million - £90 million

= £30 million

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oksian1 [2.3K]

Answer:

Dr Payroll Tax Expense: $2,321

Cr FICA- Social security taxes payable $1,054

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Explanation:

Preparation of the March 31 journal entry to record the March payroll taxes expense

March 31

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(To record payroll taxes expense)

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What is the minimum internal temperature the lasagna must be reheated to?
Greeley [361]

165 degrees
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If the supply of money decreases (by people being laid off for example) then the opposite of all the events listed above will or can occur. The fed could become more accommodating and lower interest rates. The price of good will decrease unless manufacturers increase their inventory (which not really healthy for an economy) or they could decrease production which will further decrease the labor force which will put the economy in an endless vicious cycle -- one no one wants.

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natima [27]

Answer:

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Inbound logistics means managing the materials and parts between the manufacturer and the supplier with the help of transportation and deals with the procurement and storage of the materials and parts.

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