Fill in the missing word to complete the following statement based on the information in this lesson.

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

victus00 [196]

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

7 0

3 years ago

Weekly demand for tennis balls at The Racquet Club is normally distributed , with a mean of 35 cases and a standard deviation of

RideAnS [48]

Answer:

a-The average weekly profit is $1767.31

b- The probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.

Explanation:

a

The weekly average profit for the simulation is given where first the values are simulated using R which is given as below:

x<-round(rnorm(n,m,s))

Here

round converts all the values of the simlation to integer.
rnorm is the command for simulation
n is the number of values which is 52 in this case
m is the mean of the values which is 35
s is the value of standard deviation which is 5 cases.

The values of x are as follows

[1] 36 49 30 29 34 36 32 28 32 29 32 27 40 32 30 37 43 30 42 30 31 34 36 38 28 29 32 42 36 35

[31] 37 41 34 39 37 46 34 44 45 41 41 29 36 38 35 32 36 39 30 38 40 27

Now using these values, the average of the simulation values is cacluated as follows:

mean(x)

35.3462

Now using this with the value of profit of $50 gives:

Average Profit=$50 x 35.3462

Average Profit=$1767.31

The average weekly profit is $1767.31

b-

First number of cases are required so that the value will be greater than 2000 it is given as

Number of cases=2000/50=40

So firstly the Z-score is calculated which is as below:

$Z=\dfrac{x-\mu}{\sigma}\\Z=\dfrac{40-35}{5}\\Z=1$

Now the probability is given as

$P(X\geq 40)=P(Z\geq 1)\\P(X\geq 40)=1-P(Z< 1)$

The value of P(Z<1) is calculated from the table which is given as

0.84134

So the equation becomes

$P(X\geq 40)=1-P(Z< 1)\\P(X\geq 40)=1-0.8413\\P(X\geq 40)=0.1587$

So the probability of having a weekly profit of more than 2000 is 0.1587 or 15.87%.

4 0

3 years ago

Which of the following is most likely true about direct and digital marketing? Group of answer choices They make it increasingly

lord [1]

Answer:

They provide buyers with anytime, anywhere access to products.

Explanation:

Direct digital marketing is the type of marketing that is done exclusively through digital channels such as email and the internet. It is becoming the more convinient way of marketing and is used by most businesses and even replaces traditional marketing in some cases.

Email marketing involves promotion of products through targeted emails to selected customer segments.

Marketing on the internet involves advert placement on various internet channels such as social media and search engines.

A minor advantage of digital marketing is that it is available at every time. So the customer can access information on products at any time of the day.

7 0

3 years ago

Read 2 more answers

What microeconomic factors point to the fact that your business should be successful? Be sure to provide evidence for your claim

SashulF [63]

The microeconomic factors that are important to consider in business is competition, the supply and demand, elasticity of the goods and similar variables. Depending on the business, each has factor has a unique impact which can either help or ruin the business.Thank you for your question. Please don't hesitate to ask in Brainly your queries.

5 0

3 years ago

Read 2 more answers

The government sets a price ceiling for a monopoly that is below the profit-maximizing price but above the level at which the

Goshia [24]

As a result of the price ceiling, the monopolist will "produce more than the monopoly level of output ".

The monopolist's profit maximizing level of output is found by likening its marginal revenue with its marginal cost, which is a similar benefit maximizing condition that a splendidly focused firm uses to decide its equilibrium level of output.

8 0

3 years ago