1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mixas84 [53]
2 years ago
6

Imagine that Kristy deposits​ $10,000 of currency into her checking account deposit at Bank A and that the required reserve rati

o is​ 20%. Refer to the scenario above. As a result of​ Kristy's deposit, checking account deposits in the banking system as a whole​ (including the original​ deposit) could eventually increase up to a maximum of
Business
1 answer:
yarga [219]2 years ago
7 0

Answer: $50,000

Explanation:

Deposit = $10,000

Required reserve ratio (RR) = 20%

HERE, the bank deposit reserve = $10,000

Maximum checking account deposit :

(1 ÷ required reserve ratio) × deposit reserve

(1 ÷ 0.2) × $10,000

5 × $10,000 = $50,000

Therefore, checking account deposits in the banking system as a whole​ (including the original​ deposit) could eventually increase up to a maximum of $50,000

You might be interested in
With capital rationing, alternative proposals are initially screened by establishing minimum standards and applying which of the
il63 [147K]

Answer: OPTION C

Explanation The answer to this question is cash payback and average rate of return method.

Capital rationing is the method used by companies to effectively allocate the limited funds a company has on alternative funds.

Under payback period method the company evaluates how much time will it take a project to recover its initial cost and as per average rate of return method the company evaluates the return generated from the net income, it does not take into consideration the time value of money.

6 0
3 years ago
A firm's ________ is the level of sales necessary to cover all operating costs, i.e., the point at which ebit equals zero.
Mnenie [13.5K]

A firm's <u>operating breakeven</u><u> point</u> is the level of sales necessary to cover all operating costs.

More about operating breakeven point:

The point at which sales revenue equals all fixed and variable costs while producing no profit for the company is known as the operating breakeven point. A fixed cost is a cost that a company incurs regardless of how many units are produced.

Fixed costs include things like rent, insurance, and interest payments. On the other hand, a variable cost is a cost that varies according on the amount of output. Variable expenses include, for example, labor and raw materials.

Learn more about operating breakeven point here:

brainly.com/question/15406644

#SPJ4

Complete Question:

A firm's ________ is the level of sales necessary to cover all operating costs, i.e., the point at which EBIT equals zero.

A) cash breakeven point

B) financial breakeven point

C) operating breakeven point

D) total breakeven point

7 0
2 years ago
Even with industry interconnected, where an improvement in one area led to improvements in other areas, there was one dual found
Katyanochek1 [597]

Answer:Even with industry interconnected, where an improvement in one area led to improvements in other areas, there was one dual foundation on which the rest was built; that foundation was Steam And Speed

<u>Explanation:</u>

The dual foundation is steam and speed. Steam here means steam engines, with the invention of steam engines the industry grew rapidly as it made transportation very easy. These steam engines further contributed to speed.

Speed also plays a major role in the growth of the industry. The speed of transportation increased and this resulted in quick delivery of various goods from one place to another. So both steam and speed led to the growth and development in an industry.

5 0
3 years ago
Goods and services are purchased by businesses as well as by individuals. a. True o O b. False​
Nesterboy [21]

Answer:

true

Explanation:

7 0
3 years ago
Which bond portfolio with a 20-year life would be expected to give the highest long-term return?
lana [24]

with an expected rate of return of 10% and a default risk of 20% over the portfolio life  with an expected rate of return of 10% and a default risk of 20% over the portfolio life

<h3>What is rate of return?</h3>

A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.

The annual rate of return is the percentage change in an investment's value. For instance, if you assume a 10% annual rate of return, you are anticipating that the value of your investment will rise by 10% each year.

Assume an investor paid $950 for a short-term bond, such as a US Treasury Bill, and redeemed it at maturity for its face value of $1000.

To know more about rate of return follow the link:

brainly.com/question/24301559

#SPJ4

8 0
1 year ago
Other questions:
  • Economic research "consistently" finds that immigration negatively impacts the average American wage. "false"
    9·1 answer
  • Due to the credit crunch during the recent recession, many small businesses found that _____________ were more willing to lend m
    10·2 answers
  • A decrease in the basis will __________ a long hedger and __________ a short hedger. Group of answer choices hurt; hurt hurt; be
    15·1 answer
  • Producer surplus is equal to
    15·1 answer
  • Problem 18-7A Break-even analysis with composite units LO P4 Patriot Co. manufactures and sells three products: red, white, and
    5·1 answer
  • One element of ethical research consists of being open minded while researching and ensuring that data is leading your thoughts
    12·1 answer
  • The following gives the number of pints of type A blood used at Woodlawn Hospital in the past 6 weeks.
    13·1 answer
  • A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decis
    7·1 answer
  • Patel Inc. factors $6,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retains
    12·1 answer
  • According to the eight-stage model of planned organizational change, the last stage of navigating the change process is?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!