The required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8
If the required reserve is 10%, the currency reserve multiplier is 10 and the currency supply should be 10 times the reserve. A reserve requirement ratio of 10% also means that banks can lend out 90% of their deposits.
The reserve ratio can be calculated by simply dividing the amount a bank must hold in reserves by the amount the bank has on deposit. For example, if he has $10 million in bank deposits and needs to hold $500,000 in reserves, the required reserve ratio is 1/20, or 5%.
The ratio of required reserves to deposits. A reserve ratio of 10% means that banks must hold 10% of their deposits as a reserve.
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The word to fill the blank space is "S<span>econdary Memory".
Complete sentence will be as below:
</span>Secondary memory <span>holds data at a time when the computer is not on an/or at a time when a program is operating its functions.
</span><span>This part also serves as archival storage, it is used when someone needs to store huge amount of data and for a longer period of time.</span>
Answer:
a: 12.8%
Explanation:
Standard Deviation would be calculated with the probability approach since there is probability given in the question.
- Formula of Standard Deviation and the solution is given in the pictures below.
- Although ERR the required part to calculate Standard Deviation is calculated in the text.
Calculating ERR:
ERR= Sum of Probabilities × Rate of returns.
In our question = ERR= 0.2 × 30% + 0.5 × 10% + 0.3 × (-6%) = 0.128 = 12.8%
Thus, by putting all the values in the formula you will get the answer 12.8%.
Answer:
$63,852
Explanation:
The computation is shown below:
a) PV of payments is
= $23,500 × (1.07^30 - 1) ÷ (0.07 × 1.07^30)
= $2,91,612
b) The Loan PV of payments is $3,00,000
c) And, the Balloon payment required is
= (Borrowed amount - loan PV payments) × (1 + rate of interest)^number of years
= ($300,000 - $291,612) × 1.07^30
= $63,852
Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
