In this case the Atlantic bank will respond by increasing its bank reserves.
Bank reserves is the minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards . The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.
The federal discount rate is the interest rate that the Federal Reserve bank charges banks to borrow money from it.
A higher discount rate makes it more expensive for banks to borrow, which reduces the amount of money available and reduces investment activity. In contrast, a decline in the discount rate lowers the cost of borrowing for commercial banks, which increases the amount of credit that is accessible and lending activity across the economy.
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Answer:
$10,000
Explanation:
Calculation to determine J.D.'s basis in his Clampett, Incorporated, stock after all transactions in 2021
Using this formula
J.D.'s basis =Original basis+Increase in basis from his distributive share of income- Distribution
Let plug in the formula
J.D.'s basis = ($30,000 + $10,000 - $50,000) J.D.'s basis =$10,000
Therefore J.D.'s basis in his Clampett, Incorporated, stock after all transactions in 2021 is $10,000
Answer:
The correct answer is "$54000".
Explanation:
According to the question,
Annual depreciation rate will be:
=
= (%)
hence,
The depreciation as per double decline will be:
=
By putting the values, we get
=
= ($)