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Lelechka [254]
4 years ago
14

The People's Bank has $1 million in loans, $2 million in checkable deposits, and $300,000 in reserves. If the reserve ratio set

by the Federal Reserve is 0.2, then the additional amount of _____ must be held as reserves.
a. $60,000
b. $200,000
c. $100,000
d. $600,000
Business
1 answer:
Rina8888 [55]4 years ago
7 0

Answer:

excess reserve = $100000

correct option is C $100,000

Explanation:

given data

loan = $1 million

deposits = $2 million

reserve = $300,000

reserve ratio = 0.2

to find out

additional amount as reserve

solution

we know here

first we find here required reserve that is express as

required reserves = reserve ratio × deposits    ..........1

required reserves = 0.2 × 2 million

required reserve = $400000

so

excess reserve is difference of actual reserve and required reserve  that is

excess reserve = 400000 - 300000

excess reserve = $100000

correct option is C $100,000

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Answer:

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Explanation:

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The gain for an investment in stocks is:

\frac{DividendsYield+SharePriceVariation}{Investment} = $Return on Investemnt

In this case we are told that this is distribute evenly, this means:

dividends paid = market price gain

So dividends yield 5% and market price yields another 5% to achieve the 10%

So currently $56 market price x 0.05% = $2.8 divdends per share

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sight and foresight

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A business cycle can indicate that an economy is in a recession if:
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Answer:

C the economy remains in a contraction for two quarters.

Explanation:

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3 0
3 years ago
The manager of a store that specializes in selling tea decides to experiment with a new blend. She will mix some Earl Grey tea t
Lelechka [254]

Answer:

Amount of Grey tea = 100 pounds

Amount of Orange Pekoe tea = 300 pounds

Explanation:

let G = amount of Grey tea

let 400 - G = amount of Orange Pekoe tea

6G + 4 (400 - G) = 4.5 x 400

6G + 1,600 - 4G = 1,800

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G = 200 / 2 = 100

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3 0
4 years ago
In the AS/AD model, as the price level falls, the holders of money become richer and buy more. This is one reason why the aggreg
ioda

Answer:

True

Explanation:

The statement is true.

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4 0
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