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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

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What is the present value of the following cash-flow stream if the interest rate is 5%
Talja [164]

Answer:

The present value of the cash flows is $ 786.

Explanation:

This problem requires us to calculate present value of cash flows given in the question. The present value can be calculated by discounting cash flows using interest rate (5%) as discount factor.

PV= (190* (1+5%)^-1)+(390* (1+5%)^-2)+(290* (1+5%)^-3)

PV = 181 + 354 + 251

PV = $ 786

(Discount factor = CF (1+interest rate)^-period)

5 0
4 years ago
Is “AAMZON” a PRODUCT BASED or SERVICE BASED company
Vladimir79 [104]

Amazon is both. They sell products and services.

7 0
3 years ago
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Thomas company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purcha
bearhunter [10]

Answer: $600F

Explanation:

Given the following :

standard unit price - $1.80

actual purchase price per unit - $1.65

actual quantity purchased - 4,000

units actual quantity used - 3,900

units standard quantity allowed for actual production - 3,800 units

Material purchase price variance = ( Actual unit price of material - standard unit price of material) × Actual unit of material purchased

($1.65 - $1.80) × 4000

( $0.15) × 4000

$600F (Favorable) because standard price is higher than actual price

6 0
3 years ago
Pina Colada Corp. had the following transactions during 2022:
LenaWriter [7]

Answer:

D. $(254100)

Explanation:

CASH FLOW FROM FINANCING ACTIVITIES:

<em>Cash Receipts From:</em>

1. Issuance of Stock                                                      $302,500

<em>Cash Paid For:</em>

4. Dividend                                                                     $(24,200)

10. Repayment of Loan                                                $(532,400)

Net Cash Flow from Financing Activities                  $(254,100)

2. It is Operational Activity.

3. It is Investing Activity.

5. It is Investing Activity.

6. It is Operational Activity.

7.  It is Operational Activity.

8.  It is Investing Activity.

9.  It is Investing Activity.

7 0
3 years ago
Which of the following is a low-interest loan to students with very high financial need? A.Direct PLUS B.Pell C.Gates D.Perkins
8090 [49]
My answer would have to be D.Perkins
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4 years ago
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