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
viva [34]
4 years ago
14

Suppose a bank does NOT hold any excess reserves (it loans all available reserves) and the reserve ratio is 20%. If Melanie depo

sits $1,000 of cash into her checking account and the bank lends $600 to Morgan, the bank can lend an additional * $5,000. $1,000. $200. $400. $600.
Business
1 answer:
s2008m [1.1K]4 years ago
8 0

Answer:

$200

Explanation:

Reserve ratio is the percentage of a deposit that a bank is supposed to withhold as reserves forming part of deposit that banks make into federal reserve.

It plays a major role in deciding the amount of money available to be lent and supply of money.

<u>Workings</u>

Reserve ratio - 20%

On a deposit of $1000, The reserve is 20% * 1000 =$200

Assuming no excess reserve , the limit on the deposit is $800

The reserve = $200

Therefore , if $600 is lent , the bank can further lend  ($800-$600)

$200

You might be interested in
James, an administrative manager at Seal Inc., is asked to purchase 100 printers for the firm’s office. He contacts a sales repr
Reptile [31]

Answer:

a. Retailer

Explanation:

Retailer is "a business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business "

Reference: WebFinance. “Read the Full Definition.” BusinessDictionary.com, 2019

8 0
4 years ago
A building was purchased for $66,500. The asset has an expected useful life of eight years and depreciation expense each year is
Sidana [21]

Answer:

$34,500

Explanation:

Depreciation is the systematic allocation of the cost of an asset to p/l based on its estimated useful life.

Assets are initially recorded at cost be carried subsequently at the net book value which is the cost less residual or salvage value then divided by the estimated useful life. Mathematically, using the straight line method,

Depreciation = (cost - residual value)/useful life

let the residual value ( which is the estimated value obtainable from the disposal of the asset at the end of its estimated useful life) be p

4000 = (66500 - p)/8

32000 = 66500 - p

p = 66500 - 32000

= $34,500

4 0
4 years ago
A 1990 Naval Aerospace Research Laboratory Study noted that the fixations that occur during a scan require about 18 seconds.
Anastaziya [24]
This answer is A. True
7 0
3 years ago
Suppose an industry earns a rate of return of 10%, which is twice as high as that of competitive industries, 5%. How much is the
sergey [27]

Answer:

Let us assume that both the industries are having an investment of $100,000

The profit of the given industry which is having 10% rate of return will be $100,000 * 10% = $10,000

The other industry which is having the Rate of return of 5% will earn a profit of $100,000 * 5% = $5000.

As the capital is just half of the revenue, it signifies that the total revenue will be $200,000 . So the same value of $10,000 will be 5% of the total revenue.  On the other hand, $5,000 would be 2.5% of total revenue.

Thus, the first stated industry will charge 2.5% more than the other industry.

6 0
4 years ago
Assuming the same percentage is used in each case, which of the following is higher
Gala2k [10]
Well, you don't have exact information for me to solve it.
4 0
4 years ago
Other questions:
  • A parking lot charges $2 per hour for the first 4 hours, then $3 per hour after that. Which equation(s) describes the total cost
    5·1 answer
  • A customer purchased an item on credit which journal entry should be made to record this purchase?Journal EntriesAccounts Receiv
    14·1 answer
  • Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $8
    6·1 answer
  • 4. Boeing just signed a contract to sell a Boeing 737 aircraft to Air France. Air France will be billed €20 million which is pay
    14·1 answer
  • Which of the following fees would likely to be the highest
    13·1 answer
  • Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occur
    9·1 answer
  • Which investment has the least liquidity? mutual fund house checking account corporation Mark this and return Save and Exit Next
    12·2 answers
  • At All County Auto, managers encourage employees to receive training and praise them when they demonstrate new skills. Employees
    6·2 answers
  • healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of
    6·1 answer
  • Labor costs charged to manufacturing overhead represent ______ labor costs.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!