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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

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A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
coldgirl [10]

Answer: ethnocentric

Explanation:

6 0
2 years ago
On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40
kompoz [17]

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

The authorized shares are not affected by movements in the shares, like issue of shares, repurchase, and resale of treasury stock shares.  The authorized shares, therefore, represent the number of shares that the company is legally bound to issue without exceeding.  The implication is that the company is free to issue shares less than or equal to the authorized shares, but it may not issue more than the authorized until it obtains a new authorization.

The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock.

3 0
2 years ago
Stock J has a beta of 1.26 and an expected return of 13.46 percent, while Stock K has a beta of .81 and an expected return of 10
Oxana [17]

Answer:

J = 0.422

K = 0.58

Explanation:

When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.

Let us define the weight of stock J = x

Let us define the Weight of stock K = (1-x)

To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1

When we open the brackets,

1.26x + 0.81 - .81x = 1

1.26x-0.81x = 1-0.81

0.45x = 0.19

To get x we divide through by 0.45

X = 0.422

Therefore the Weight of stock J = 0.422

Then the Weight of stock K = 1 - 0.422 = 0.578

Approximately 0.58

5 0
2 years ago
Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
kow [346]

Answer:

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.

The value of the option if job growth is 193,500 is $0.

Explanation:        

Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.

Therefore, the value of the option if job growth is 193,500 is $0.

7 0
3 years ago
Read 2 more answers
For each hypothetical scenario, indicate whether the tariff described is more likely a protective tariff or a revenue tariff.
LenaWriter [7]

Answer:

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.

  • protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.  

b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

  • revenue tariff since its main purpose is to increase government revenue, not to protect domestic industries.
7 0
2 years ago
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